Guangzhou Baiyun Mountain Pharmaceutical Co., Ltd. sells water across borders.

The original humble mineral water industry has recently been continuously sought after by the "big coffee" in the capital market.

After Evergrande, Fangda Special Steel, which seems to have nothing to do with the industry, also announced the cross-border sale of water, but the reason is only "good water is hard to give up".

Yesterday, Baiyun Mountain, the "big brother" of the pharmaceutical industry, also said that he would enter this industry. Yesterday, when visiting Wang Laoji Health Company, Fred Murad, president of Guangzhou Institute of Medicine, revealed that he would set up a joint venture with Guangzhou Pharmaceutical Group and plan to operate pomegranate juice and other health products. At the same time, Wang Lao Ji Da Health Company said that it will start the sales of "Baiyun Mountain" pure water, throat lozenges, walnut plant protein drinks and other products next year.

In fact, as early as 20 12, Baiyun Mountain put forward the strategy of "great health". It is planned that by the end of the Twelfth Five-Year Plan, the sales of products under the brand of Wang Laoji will reach 50 billion yuan, which is equivalent to two or three times the annual sales of Wang Laoji in red, green and green at that time.

However, after this slogan was put forward at that time, the effect was not as expected, and Wang Laoji's diversification also declared "failure". This cross-border water sale can be regarded as the company's second attempt to "diversify". Unlike the first time for food, this time it is mainly for beverage products.

But like the first time, this time the company's cross-border water sales are also not optimistic about the industry. Tan Quansheng, a senior researcher in the pharmaceutical industry of Jinyuan Securities, said that the food and beverage industry is very different from the pharmaceutical industry in terms of channel expansion and marketing. Although GPHL has experience in operating red and green Wang Laoji, Wang Laoji has not yet reached the income stage, and the risk of cross-border water production is very high. Guangzhou Pharmaceutical Group can combine its own superior products of traditional Chinese medicine to extend its products in health fields such as health food. Although GPHL's plan to sell water is still in the planning stage, many people in the industry have already felt the existence of this risk.

A senior pharmaceutical investor said that compared with the current and potential size of the China market, no local pharmaceutical company in China can meet the leading standards. In terms of product line, marketing and company structure, the huge development space is huge compared with other categories of manufacturing industry. Making consumer goods at the expense of the end loses the core competitiveness and ultimately destroys the company value.

As a fast-moving consumer goods, if you don't keep a high exposure in the media, the prospect will be very slim, but it means that enterprises will invest huge marketing expenses.

165438+1On the evening of October 9th, Evergrande didn't spend a penny at Tianhe Stadium in Guangzhou, letting countless people know about Evergrande Ice Spring Mineral Water. But then, Evergrande did not give up its publicity on websites and newspapers. A person close to Evergrande revealed that only this wave of promotion, Evergrande's overall promotion expenses should reach at least 500-600 million yuan.

Tan Quansheng said that it is a good thing for pharmaceutical companies to use high-end quality image to implement cross-border strategy from the perspective of brand extension, and the homology of medicine and food is also easy for consumers to accept. However, considering the marketing characteristics of water and fruit juice, if GPHL is not prepared in terms of channels and brands, it is still very risky to rashly enter unfamiliar areas. If you blindly follow the trend of selling water, it will be more difficult to reopen channels and brands, and even the possibility of affecting the main business will not be ruled out. It is conceivable that businesses can't afford to get up early without profit. A bottle of seemingly ordinary mineral water hides huge business opportunities and profits.

According to the 12th Five-Year Development Plan Proposal of China Beverage Industry issued by China Beverage Industry Association, it is predicted that the total output of beverages in China will maintain an average annual growth rate of 65,438+02% to 65,438+05% in the next five years, with a huge market capacity.

The profit level of high-end mineral water is high, but at present, domestic leading brands have not really formed. Some insiders predict that in 20 15 years, the market capacity of high-end water will be around10 billion yuan, and the gross profit margin can be maintained at 20%, which is 6-7 times that of ordinary drinking water.

Therefore, under the attraction of high profits, companies in non-food and beverage industries such as Evergrande and Fangda Special Steel can be attracted to enter on a large scale.

However, some insiders believe that the competition in the drinking water industry is particularly fierce because of the small gap between drinking water categories and the basic convergence and singleness of sales channels and marketing methods.