Exposure to drinking water company prices Nongfushangquan cost pressures – china
Nongfushangquan the media disclosure of prices of bottled water experiment, and dealer profit margins caused by misuse, leading to loss of storms. Nongfushangquan said that for the bottled water business is the implementation of a "new model": on the one hand the pressure from the cost, on the one hand you want to distributors had the right to revert to the headquarters. Investment Advisor in the food industry, Chen Chen, chief researcher believes that the crisis exposed the farmer spring water company prices are facing cost pressures, with the water resources, manpower and transportation costs increase the cost of drinking water business challenges into business development .
Compared to mineral water and purified water, the mineral water and natural water pressure to greater cost than the former, reason is the huge transportation costs. Mineral water and natural water sources in the main selling point is that, while mineral water and pure water filling and can be locally produced, but must rely on mineral water and natural water production capacity from water to transportation to the national market, the cost issue is obvious.
Nongfushangquan said the price rise lies in the fact Nongfushangquan has been selected from metropolitan high quality natural water sources, all production processes are completed in the water. Bottled water than most businesses, farmers Springs has been under tremendous pressure from the cost. This seems to be the most reasonably prices Nongfushangquan reasons, and from several enterprises are concerned, spring has been a farmer since the identity of the natural water can only fill in the off-site well, and through market-oriented transport, transport costs have become a part of the mineral water company's biggest cost pressure.
Investment Advisor in the food industry, Chen Chen, chief researcher believes that the crisis exposed the prices Nongfushangquan Yin Yongshui companies are facing cost pressures, with the water resources, manpower, transportation costs increase the cost of drinking water business challenges into business development . In recent years, drinking water, carbonated drinks have been replaced long-term monopoly on the status of 30% or more consecutive years the proportion of retaining its position as the top spot in the top ten drinks. At present, China's consumption bottles (barrels) of installed drinking water of the population over 30% of the total population, some people began to bottled water as the sole source of drinking water.
In 2008, the scale of China's bottled water industry reached 40 billion yuan, profit margin is only 3.85%. With the operation of the market, the original cost, labor and other costs of the constant rise in bottled water in China "marginal profit." However, "marginal profit" of current, water companies also face brutal competition, they played the "price war", for example, a number of brands to capture the market will set the price below the profit line, which ordered the entire industry detrimental to the development.
Investment Advisor in the release of "2009-2012 China's Drinking Water Market Report Investment Analysis and Prediction," shows currently on the market bottled water includes six categories: pure water, mineral water, spring water, mineral water, water and other natural water flavor. China's bottled water industry has entered a steady growth phase, with 40% market share among the forefront of the beverage category. The mineral water market-share of 12%, 8% of natural water.
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