How to Enter to the Bottled Water Market in China ? Good question.
Overview of the bottled water market in China
The bottled water market is a market whose sales and consumption have exploded in just twenty years. Nowadays, Chinese industry exceeds that of the United States in terms of consumption and those for several reasons that we will evoke through the article.
The penetration of bottled water in China now stands at a rate of 15%, the market is still a great opportunity for the players who wish to expand there. The industry consumes more than 69 billion liters in volume and a turnover in value of more than 90 billion yuan.
There are three main reasons for the development of the industry:
Water pollution played an important role in the growth of the market. Indeed, although the Chinese government reassures individuals about water quality in large cities in the country, residents have become suspicious of this resource and prefer to buy bottled water of higher quality and more secure.
The emergence of the Chinese middle class contributes to the growth of the market by the development of incomes but also by its changes in expectations and consumption behaviors. This part of the population by rising incomes has been hoped for and aspired to a better quality of life.
China’s general health awareness has enabled the market to grow rapidly and to become a prominent player in the beverage market, the health interest is growing rapidly in China and the benefits Mineral water are increasingly appreciated by individuals.
There are three segments produced on the market in China:
Mineral water, which represents 91% of the bottled water market, Sparkling water, with a 7% share and Flavored waters 2%. On the market, sparkling water is the best growing sector in 2016.
China’s Competitive Water Market Landscape
The market-leading brands account for more than half of the total market in China and the industry is largely dominated by domestic players. The leading company in the market is Ting Hsin International Group with their brand Tingyi Master Kong. Followed by Yangshengtang Co. Ltd. with Nongfu Spring, China Resources Enterprise Ltd and its bottled water brand called it is good and Hangzhou Wahaha Group Co. Ltd. with its Wahaha brand.
The market is attracting more and more international brands such as Coca-Cola, Danone and Nestlé, which, in order to integrate the market, have joined forces with domestic players to develop their activities. In general, foreign brands are positioned on the premium water market and are increasingly successful on the part of individuals.
Urbanization has pushed people to reconsider their consumption and to aspire to a better quality of products. Foreign brands are generally perceived as a guarantee of quality in many markets in China, as a result of increasing health awareness.
The challenge of brands on the water’s market
Marketing and communication play a prominent role in the success of a brand or not. In the bottled water market, the marketing campaigns have allowed the industry vehicle a picture of trendy and healthy products and advocating a Healthy lifestyle.
Individual concerns about the risks of water contamination are a real opportunity for international brands. Indeed, many brands play the responsible corporate card and sensitive to the anxieties of individuals in order to increase their sales. By this type of campaign, the consumer perceives water as a healthier alternative and the feeling of water safety is enhanced by the internationally recognized hidden and marketing campaigns to promote the brand.
Promoting its brand in China requires understanding the structure of the market and the environment in which it operates. Many foreign companies have failed in China because they wanted to impose their Western strategy on the market or our consumer environment is hardly transposable n China.
So here are various tips that will help you in your expansion into the Middle Kingdom.
Bet on the digital channel to develop your reputation
The impact that social networks have on individuals is immense in China. Indeed, they are an integral part of the daily life of more than 900 million Internet users. The digital sphere in China has taken a completely different turn from the one we know in the West due in particular to the censorship of the Chinese government concerning social networks such as Facebook, Twitter or Google.
Internet users have the opportunity through these applications to be part of different communities, groups, follow the news and be able to follow their brands, buy online and share content. WeChat and Weibo are the two-main media you will have to position yourself on.
Social networks have the advantage of promoting interaction and proximity to the consumer. Moving away from the overly commercial image of brands on this type of platform is a good way to make you love individuals and therefore promotes the sale. Share content is a way to gain visibility and satisfy the curiosity of the surfers.
The Chinese are generally known for carrying out abundant research upstream of any product purchase. The concerns of these individuals in the water market are important. Educating consumers about the benefits of your brand and your products through these applications is a good way to gain popularity.
Optimize your visibility by the quality of your website and its SEO for Baidu
Being positioned on the Chinese internet sphere is a necessity if you want to develop your visibility. To adapt to the requirements of consumers you are going to have to optimize glass website in Mandarin. As said before, the Chinese consumer does a lot of research on the internet to find out what products he wants to buy. Your website is the showcase for your company and its products, the visuals and information that will be published will have to be of high quality to attract the interest of your potential consumers.
To increase your visibility, hosting its website in China seems one of the optimal solutions to appear in the best search results of the search engine leader in China: Baidu.
Search engine optimization is the basis of any understanding of consumer behavior, 70% of them perform their search via Baidu regarded as the Chinese Google.
Gentlemen Marketing Agency is here to help!
Our agency is born out of our passion for the web, digital marketing and business in China. Located in Shanghai, Gentlemen Marketing Agency is specially positioned and focused on Chinese digital growth.
With our experience in many different industries, we understand the issues and opportunities you face in your markets. We can help you realize your strategy to get you started in the Chinese market and help you use the right techniques for your relations with your Chinese customers.