In this scorching summer, when the scorching sun scorches the earth, every drop of coolness is particularly precious.
In this contest about "water", the two giants, Fat Donglai and Nongfu Spring, are quietly starting a unique market battle.
Today, let's incarnate as the most down-to-earth marketing editor, take you to find out, see how the story behind this is fascinating, and how it stirs up layers of ripples in the hearts of consumers.
When it comes to Fat Donglai, I am afraid that everyone in Henan knows about it, and no one knows it.
This retail giant, known for its "service-oriented" approach, is always able to surprise people inadvertently.
No, Mr. Yu Donglai, chairman of Fat Donglai, recently released a big move - plans to launch his own brand of mineral water, which instantly caused a lot of sensation in the circle.
Looking back on the past, Fat Donglai's attempts in the field of mineral water were not all smooth sailing.
In 2019, they worked hand in hand with Guangxi Bama Platinum Spring to launch a co-branded mineral water, but unfortunately, this mineral water was not as popular as expected, and eventually even became the target of clearance promotions.
However, Fat Donglai was not discouraged, they know that success is often hidden behind failure, waiting for the next gorgeous turnaround.
The turnaround came on Fat Donglai's OEM beer.
With Fat Donglai's strong brand influence and ultra-low price advantage (the unit price is less than 4 yuan, far lower than the unit price of most brands on the market starting from 6 yuan), this beer quickly became popular in the market, triggering an explosive purchasing frenzy among consumers, and it was sold out of stock several times.
This scene undoubtedly injected strong confidence and motivation into the new mineral water products that Fat Donglai was about to launch.
When it comes to the mineral water market, it's a real red sea.
Not only do traditional brands such as Nongfu Spring, Wahaha, Cestbon and so on firmly occupy the market share, but in recent years, more and more supermarkets and e-commerce giants have also begun to set foot in this field, launching their own brand mineral water, trying to get a share of this blue ocean.
For example, Sam's Club sells 300ml of 24-bottle mineral water for only 22.8 yuan, with an average of less than 1 yuan per bottle, and Hema Fresh, where 350ml of 24-bottle mineral water costs 24.9 yuan, equivalent to about 1.04 yuan per bottle.
It is revealed that the unit price of the new mineral water to be launched by Fat Donglai may also be controlled at about 1 yuan, which undoubtedly makes this "water" war more intense.
When it comes to the mineral water market, how can you not mention Nongfu Spring? As the leader of the domestic packaged drinking water market, Nongfu Spring's every move affects the nerves of the industry.
During the 618 period, the price of 12 bottles of 500ml pure water was lowered to 9.9 yuan, with an average bottle of only 0.825 yuan per bottle, and even in some channels, the unit price was as low as 0.74 yuan.
This wave of low-price promotions has achieved remarkable results, and the cumulative sales of Nongfu Spring's new pure water have exceeded one million pieces in a short period of time, and 618 has rushed to the top of the list of new water drinks on Jingdong on the same day.
However, behind this seemingly infinite scenery, Nongfu Spring is also facing a lot of challenges.
On the one hand, although the low-price strategy can quickly occupy the market, it will also compress profit margins and affect the long-term development of enterprises.
On the other hand, Nongfu Spring's price reduction behavior may also squeeze the living space of new and old competitors such as Wahaha, Cestbon and Fat Donglai, triggering more fierce market competition.
More importantly, the low-price strategy may also affect the sales of Nongfu Spring's core product, Red Bottle Natural Water, after all, consumers often find it difficult to choose when faced with many similarly priced products.
The reasons for Nongfu Spring's price reduction may involve many aspects, which can be summarized as follows based on the current market situation and relevant reports:
As more and more brands enter the beverage market, especially in the bottled water sector, the market is becoming increasingly competitive.
Nongfu Spring uses price reduction promotions to attract consumers and increase market share, so as to cope with the competitive pressure from other brands. Price reduction is one of the common strategies in market competition, and Nongfu Spring aims to attract more consumers to choose its products through price reduction promotions, so as to further expand its market share.
At the same time as the price reduction promotion, it is also actively promoting its new products, such as green bottle purified water.
Through price reduction promotions, you can quickly improve the popularity and market acceptance of new products, and lay a solid foundation for the successful launch of new products.
While maintaining the brand image, attract more consumers through price advantages, especially in price-sensitive market segments.
This strategy helps to enhance the brand's cost-effective image and enhance consumer loyalty to the brand.
Nongfu Spring has a strong supply chain and a large team of distributors, which makes it have certain advantages in terms of cost control.
By optimizing the supply chain and reducing production and logistics costs, Nongfu Spring can adjust market prices more flexibly and achieve price reduction promotions.
With the expansion of production scale, the scale effect of Nongfu Spring has gradually emerged.
Under the effect of scale effect, Nongfu Spring's unit production cost has gradually decreased, providing more space for its price reduction promotion.
There is a view that Nongfu Spring's price reduction may be in response to previous netizens' questions and comments.
Prove your strength in the market and give back to the community through practical actions.
There are many reasons for Nongfu Spring's price reduction, including market competition pressure, marketing strategy adjustment, supply chain and cost control, seasonal factors, and possible public opinion response.
The combination of these factors has prompted Nongfu Spring to adopt a price reduction promotion strategy in a specific period to respond to market changes and meet consumer demand.
As the summer season progresses, the competition in the drinking water market becomes more and more intense.
Fat Donglai is ready to go with new mineral water, while Nongfu Spring continues to stir up the market with a low-price strategy.
In this war without gunpowder, who will have the last laugh and become the leader of the market? Everything is still unknown.
But in any case, this summer water war has shown us the cruelty and excitement of market competition.
It tells us that to sail in the commercial sea, we must not only have keen insight, but also have the courage to innovate and challenge.
Only in this way can we stand out in the fierce market competition and win the favor of consumers and the recognition of the market.
Let's wait and see how this summer cool battle will continue to be staged, and see how Fat Donglai and Nongfu Spring will write their own legendary chapters in this "water" contest.
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