Bama water explores high-grade water market

A workshop of Bama spring water [Photo by Ling Jirong/hcwang.cn]

As the competition in drinking water industry is fierce, the Bama water fights for a market share in this high-intensity market.

The Bama Yao autonomous county in Hechi, Guangxi, is a famous longevity town in China due to its residents' long lifespan. People attribute it to its exclusive air and spring water. Many factories are established there to explore local natural spring water to produce drinking water.

The brand Bama Spring was founded in 2010 by Wu Yongtian, who used to be a famous entrepreneur in non-ferrous metal industry. With over 100 million yuan ($16.11 million) of investment, the company bottles 300,000 tons of spring water every year. Its products are sold in many provinces in China as well as being exported to such countries as Japan and Singapore. The annual revenue has increased from over one million yuan in 2011 to 120 million yuan in 2014, and is estimated to hit 300 million yuan this year.

Bama now has many water production enterprises. The total output value is expected to exceed one billion yuan in 2015, twice as much compared to 571 million yuan in 2014. "With this development trend, Bama drinking water can reach 6 billion yuan annual output value in three to five years," said Xiong Chaofu, director of Bama people's congress standing committee, who is in charge of local industry.

By taking advantage of Bama's fame, Bama water won many honors. The Bama Spring was awarded the gold prize in the first China's good water competition, and Bama Lilang won the title of "China Famous Brand".

Compared with ordinary drinking water manufacturers that lower water unit price to gain market share, Bama water's prices are much higher, ranging from 3 yuan to 99 yuan at the high-end. In many first-tier cities, Bama water with price tags of up to 15 and 20 yuan is the best-selling one in its category.

The water production enterprises also conduct some promotion campaigns. For example, the Bama Spring educates customers about healthy water and invests over 100 million yuan to build tourism attractions. The Bama Lilang sells its product both in cities and counties, and by building and maintaining relationships, large companies as well as hotels and other hospitality institutions become its customers.

Despite the rapid growth, problems exist as well. With many small enterprises emerging, the market is getting crowded and confused. According to the new national standard, which divides bottled and packaged drinking water into pure drinking water and other kind of drinking water, Bama water is placed in the latter category, which did weaken its brand value.

To deal with the emerging circumstances, Xiong stated that Bama government will seize chances to turn Bama into a nationwide high-grade water production base by way of mergers and re-organization. Wu said Bama will set a new entry standard higher than the existing one for its water industry and continue to explore the high-grade water market. At present, Bama is applying for the title of "Chinese Spring Water Town", which will help its efforts if successful.

Edited by Mevlut Katik