Water is a really big Market in China, because Tap water is not drinkable , because of the huge population and because Chinese have more money and care more about their health.
As you may know, China knows an amazing growth regarding its economy. However, this rapid development is at the cost of the environment. The country suffers from pollution, contaminated land, uninhabitable areas, desertification and several water issues. Therefore, the country has only 6.5 of the planet’s renewable water resources to satisfy the needs of one fifth of the world’s population. Nowadays in China’s water shortage has become a very the serious problem. The available amount of water in China reaches only a quarter of the global average. The link between water resources and agriculture starts to become more and more important.
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As you may know, China knows an amazing growth regarding its economy. However, this rapid development is at the cost of the environment. The country suffers from pollution, contaminated land, uninhabitable areas, desertification and several water issues. Therefore, the country has only 6.5 of the planet’s renewable water resources to satisfy the needs of one fifth of the world’s population.
Nowadays in China’s water shortage has become a very the serious problem. The available amount of water in China reaches only a quarter of the global average. The link between water resources and agriculture starts to become more and more important.
Sanitary Concerns Push Chinese Consumers to Buy bottle of Water
China Water Crisis 2017
China is plagued by a Critial water security crisis
This already have global implications as the crisis worsens, national and global political and economic instability will grow.
North : China’s agricultural core is in the North, but its water resources are in the South. source
Can China fix its mammoth water crisis before it’s too late ? source CNN
The Chinese Water Crisis Grows
China has 20% of the world’s population but only 7% of its fresh water and a rapidly growing middle class with water-demanding lifestyles. In 2014, eleven out of thirty-oneChinese provinces did not meet the World Bank’s water needs criteria of 1500m3 per person. In 2015 in Beijing, water provisions amounted to only 100m3. Agriculture and industry account for 85% of water usage.
Problem of Tap Water in China
Chinese consumers in general tend to pay attention regarding what they eat but also what they drink. Actually sanitary scandals are very common. For instance, in 2013 7.500 rotten pig carcasses have been found in the Huangpu river. People were very shocked and afraid because the river provided 80 % of tap water in Shanghai. After this unfortunate event, authorities promised the safety of water in Shanghai. Despite this measure, people became very sceptical and stopped drinking tap water. As a consequence, people buy more water in the bottle. The evolution of consumption can be explained by this scandal.Actually there are 5 grades to classify groundwater to check the drinkability which means the quality that the human body can support. In reality only the first three are acceptable.
Drinking Water in China
According to sources found by the New- York times, expert found 32, 9 percent of the fourth grade of water in northern and central China. However, this is not the wort news since 47.3 of grade 5 has been found too. In some areas one could also find heavy metals. Even though the water that Chinese people drink comes from groundwater, surface water can also have consequences. From 2010 to 2015 the number of sold bottles went from 19 billion to 37 billion litters according to the economist.The emergence of this market also pushed companies of beverage industry to get more involved.
An influence of western lifestyles
Chinese tend to have a western lifestyle. It stems from this trend a rapid urbanization and an increase of health awareness. The improve of their living conditions can be highlighted by the rise of salaries. So, they need to show off their new status. Chinese consumers tend to have a different mindset and a new way of thinking regarding their health.
There is a noticeable changing behaviours go with new habits, embracing health and wellness as a whole. For example, they avoid eating chewing gum. As a result, they prefer to pay a higher price and therefore they favour premium water brands and so on foreign brands.
International Brand Trying to Take Benefit From This Market
Big brands seized the importance of water safety in China. They understood that in order to win Chinese consumers trust they need to appear such as a reliable brand. This is the reason why Nestlé and Coca Cola associated worked on their branding and they intend to make people associate their brand with the notion of social responsibility.They try to make their marketing strategy fits the Chinese consumers’ expectations.
Thanks to these efforts the consumers perceive water in a bottle as a safer alternative. The case of Coca cola can serve as a good example. In 2014 they launched a socially responsible bottle water. The money collected by the sales of this water allow the financial support a humanitarian project. Indeed, they fund the cleaning of water in school for children in rural area.
The Water Market : a Huge Potential
Actually sales in volume decreased between 2015 and 2017. They moved from 5% to 4.2 %. One should also point out the fierce competition in the market. The market is very concentrated because of the presence of numerous actors. National brands need to make a more significant effort to face the competition of international brands that have a big budget for marketing and promotion.
Indeed, brands like Coca Cola and Nestlé reinforce their presence in the market considering the potential customers in the Chinese market.As a matter of fact, high end bottles are more successful because consumers are sensitive to the aspect of the bottle . However, domestic brands still dominant in the market as long they share 70 percent of market share. Imported brand water is especially consumed by young people.
Moreover , young people consume a lot of mineral water.
How to Enter in the Water Market ?
Create and develop a Brand : Chinese Trust in Brand
Even if water appears as a simple good and essential one of daily life, don’t forget that Chinese people care a lot about the aspect of the products they purchase . It is always a question about reinforcing their social status. That is the reason one you should choose a good design which is in accordance with your brand and the identity you chose to adopt.
Example of Watson Water Brand Story
eReputation is vital for Brands in China, every Marketers need to care about their Reputation.
Settle a Good Promotion of Your Water on Social Media
In China, Wechat is an unavoidable platform that allows you to be visible , discuss with your followers but also promote your products. Indeed, you can choose the kind of account you want to create.
Therefore, you have the possibility to add some Social Promotion .
Advertising Your Products With KOLs
If you have a shop on an e-commerce platform or if you have your own e-commerce website, the goal is to attract people on your website. Therefore, you can pay KOL to advertise your products on Douyin for example or you can just give them the water and then they will advertise it by promoting your brand. Thanks to their followers they can bring you new clients.
Enlarge Your Distribution
Online – Think E-Commerce in China
If you want to sell your water in China , think E-Commerce.
You already heard about
- WeChat Store & mini Program
Tmall for Evian can sell 120 000 Box of Bottles per month on Tmall
Develop your Distributor
We have a new way to Connect your Brand to 80 000 Distributors , a New B2D (Business to Distributors ). It can only
Do you need a Partner to Sell your Water in China ?
If you want to enter in the water market in China , we have the expertise to help you.
- We know what to do , and mistakes to avoid
- We can drive you to the Right Sale Channels
- We know where to invest Marketing to leverage Results
- We have case studies that should interest you.
Please go to the contact section for more information, send us maximum of information about your project.
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