The market share of packaged drinking water has been the first for eight consecutive years. How does this brand DTC continue to grow?

How does Nongfu Shanquan, the leading provider of packaged drinking water market share in China for eight consecutive years, seize the channel growth opportunity of the national soft drink market ？ This article will start with Omni channel retail Realization DTC The transformation of And private domain platform , Analyze the growth future of Nongfu mountain spring from two aspects of increasing the lifetime value of users .

1 The farmer mountain spring DTC The transformation of The background of

Nongfu mountain spring 2017 Gradually reduce the proportion of income from traditional channels in , However, compared with the national soft drink market, the new channel still has a large Growth space . It is Nongfu mountain spring to gradually seek various channels to break the dependence on traditional channels DTC The transformation of An important means of . According to frost Sullivan report , The sales channels of China's soft drink market mainly rely on the traditional channels of small grocery stores and non chain convenience stores , These shops are usually self-employed or family run . from 2014 Year to 2019 year , The market share of traditional channels is basically maintained at 50% about , But the growth space gradually shrinks , The compound annual growth rate has increased from 2014 Year to 2024 Year by year 3.5% Drop to 2.7%. Farmer's spring DTC The layout is keenly observing this trend , Seek to replace the leading role of traditional channels with more diverse channels .

in fact , Nongfu mountain spring has strong traditional channels . Disclosure according to prospectus , Its dealer network covers more than 240 A retail store , from 2012 Since, the market share of packaged drinking water in China has been the first . 2016 At the beginning of the year , Nongfu mountain spring has launched a drastic dealer reform ,17-18 It has been replaced continuously for years 1325 and 995 Dealers , About half of the original dealers , Finally, the average revenue generated by dealers will be 2017 Year of 427 Wan was promoted to 2019 Year of 592 ten thousand .

In the successful dealer reform , At the same time, Nongfu mountain spring has reorganized its online channels , Distributor , Water station , And the cooperation relationship of the terminal , And increased cooperation with core e-commerce platforms , Gradually reduce the dependence on traditional channels . The traditional proportion of Nongfu mountain spring is 2017 Year of 79.4% Down to 2019 Year of 73.3%; conversely , E-commerce channels 、 New retail channels （ Vending machine as a representative ） And the catering channels are 2018 and 2019 The year is divided into 52.8% and 37.1% Of The speed is increasing rapidly .

at present , Compared with the national soft drink market, the proportion of new channels of Nongfu mountain spring , Still a long distance . But we see that Nongfu spring is breaking the rules , Build a new packaging water DTC Pattern . new DTC Pattern It will greatly draw the farmer's spring Distance from consumers , Let the brand master the user resources in its own hands . It is believed that this model is not only worthy of reference for the drinking water industry , It has positive reference significance for many traditional FMCG brands .

2 The farmer mountain spring DTC The transformation of Key insights

（1） Nongfu spring to Omni channel retail Realization DTC New growth

Through comprehensive building O2O Pattern , Break the traditional mode of offline marketing of water stations , The brand controls the online users , Water station avatar terminal dispatcher

① Changes of water station

2017 Years ago , Nongfu mountain spring terminal water station is equipped with Natural direct connection with consumers The advantages of , In addition to delivering products , It is also responsible for the docking and expansion of the regional sinking market . But the water station itself is not the exclusive store of Nongfu mountain spring , It is the integration of water and beverage from different packages . The water station plays a very important role in choosing and promoting products of different brands , It is also difficult for brands to interfere with the actual product promotion process , More can only rely on the dealer's price and activity concessions to drive the water station . But because there are too many vertical levels , In fact, it is difficult for the brand to control the role and effect of discounts , It also increases the burden of transferring profits ; in addition , It is also difficult for brands to directly participate in the terminal Connection of consumers , There are obstacles to mastering user needs and implementing marketing strategies . such as ： Offline promotions , The water station can offer consumers discounts on packaged drinking water of different brands through water cards , However, the discount is only available to stores in a certain area , And different water stations implement different preferential policies .

So , Nongfu mountain spring is fully built O2O Pattern , Break the traditional mode of offline marketing of water stations . Nongfu mountain spring no longer allows water stations to boil water without permission , All packaged water packages （ Equivalent to water card ） And independent orders can only be made through online e-commerce platforms 、O2O platform 、 Or the farmer spring applet , Then the brand will automatically allocate the nearest water station for distribution according to the data system , If there is no water station nearby, it is more likely to be delivered by danniao express or the dealer . By knowing the source of the order 、 Narrow the scope of responsibilities of the water station （ It actually increases the dependence of the water station on the brand ）, Nongfu mountain spring can 1） Touch and interact with consumers in real time ;2） Ensure that consumers are online and offline , Consistent consumption experience in different regions ;3） Master user data and make market response faster ; as well as 4） Increase the voice of the brand in the water station , Achieve unified image and management standards . According to reptile Statistics , At present, Nongfu mountain spring has 997 Home water station , Most of them are concentrated in Beijing, Shanghai, Guangzhou and Shenzhen .

Although in this way , The farmer blurred the water station The role of direct connection with consumers , As a result, their information control advantage is not ; But the water station also benefits from the brand's online marketing , Get more orders through the platform , Reduce the pressure to expand the market . meanwhile , Nongfu Shanquan passed the performance reform , Improved support for dealers and water stations , Ensure that the channel profit is basically consistent with the previous one .

② Platform cooperation

Get through Omni channel retail , Nongfu mountain spring needs to use the e-commerce platform JD 、 TaoBao 、 Tiktok 、 More and faster Reach a large number of consumers quickly . meanwhile , Nongfu mountain spring also settled in meituan 、 Are you hungry? With Jingdong home and other third parties O2O platform . According to China home retail big data platform ,2021 Nian meituan 、 Are you hungry 、 Jingdong arrives home, etc O2O The business revenue of platform packaged drinking water reaching home has accumulated to 13.25 One hundred million yuan . And the distribution rate of Nongfu mountain spring exceeds 80%, Revenue over 6 One hundred million yuan , Sales are ahead of other brands . among , The business of delivering water to the home through the water station has reached 7 Ten million level .

meanwhile , Nongfu mountain spring is the first batch of brands to realize logistics cooperation with e-commerce platforms . East of Beijing “ Natural selection ” Project as an example , JD has changed the original way of distribution centered on the warehouse , Cooperate with Nongfu Shanquan offline network system , Use the channel laid offline , Such as supermarket 、 Convenience store or water station of Nongfu mountain spring , Match the customer's order to the nearest outlet , Realize nearby distribution . While improving distribution efficiency , It improves the consumer experience , It also optimizes the storage and distribution costs , It also improves the sales performance of offline channels .

In addition to online cooperation with third-party platforms , Nongfu mountain spring is still in recent years Strive to build your own private domain platform ： Sesame home and send water to the house .

（2） Use the private domain platform to store current , Increase the lifetime value of users

Through differentiation strategy , Membership rights and community sesame shop , Capture high-frequency consumer users in multiple scenarios .

① With differentiated products 、 Price and core services attract users

Nongfu spring's private domain mainly includes sesame home applet 、 Sesame store 、 Send water to the government applet 、 Send water to the mansion APP, And send water to the official account shopping mall . In order to attract more users to use Nongfu spring's private domain platform , The private price of Nongfu mountain spring is lower than that of other e-commerce platforms , The discount is close to 5%. High end drinking water mainly promoted by Nongfu mountain spring recently – Tea making water mountain spring water 4Lx4p Take the bucket as an example , The daily price on Taobao is 55 element , It is the same specification to send water to Fu 50 element .

meanwhile , Based on the Nongfu mountain spring private domain, we pay more attention to the long-term 、 High frequency community consumers , Its main product is large package water , Include 4L、5L、12L as well as 19L specifications . conversely , In e-commerce channel 1L as well as 500ml Small packages of water are more popular . In order to meet the timely needs of community consumers , Sending water to the mansion and sesame to the house were all put forward 4 Value added service of hourly instant delivery , Faster than the e-commerce platform 1-5 Days delivery time is more timely , But only the area covered by the water station can be realized .

② Promote retention and repurchase through subscription mode and membership interests

We observed that , The positioning of sending water to Fu and sesame home is slightly different . The role of water delivery to pay has been taken over by the past water stations , It mainly sells packaged water ; And sesame home is building a long-term community ecology , Except for water , Rural products and other beverages are also one of its main products .

On the strategy of retaining and promoting repurchase , Water is delivered to the government mainly through exchange cards , Water ticket ordering and other modes similar to those of traditional water stations realize retention . And sesame home is playing the membership mode , Including growth tasks to earn points , Member discounts are given every Friday , Every Wednesday, we will remind you of strong news in wechat community , Regularly publish activity lottery and issue vouchers every week , Double points for birthday 、 Recharge monthly cards, seasonal cards, etc . Of course , Although the positioning of Nongfu mountain spring is different , However, it is still worth studying whether it will form a competitive eating effect .

③ Use sesame shop to enclose land , Broaden the consumption scene and space

Sesame store is the offline channel for sesame to get home , It mainly trains users “ water +x” Long term consumption habits . Through the sesame store, Nongfu Shanquan tries to broaden the scope of buying at any time 、 Community group purchase 、 many sku Shopping scenario of product portfolio .

in fact ,2015 Year begins , Nongfu mountain spring has begun to lay out automatic vending machines under the concept of unmanned retail , This is the predecessor of sesame store . At this time, farmer Shanquan is doing a little water test , The main types of commodities are water and beverages . here we are 2018 year , Farmer Shanquan changed his strategy , Compared with meeting the demand of impromptu water purchase , It needs more Cultivate consumers The habit of regularly buying drinking water on the way home . therefore , Led by the national dealers , Gradually transfer the vending machine to the underground parking lot of the community 、 The hotel lobby 、 And the elevator , And renamed sesame store .2019 After year , Nongfu mountain spring quickly occupied the community space , Attempt to layout through space 、 Time pre order 、 Product categories attract three aspects to increase the frequency of shopping consumption , So as to enhance the lifetime value of the overall users . According to folk statistics, Nongfu mountain spring has been around the country 300 There are nearly three cities 6 Million intelligent terminal retail devices represented by vending machines , And gradually establish a matching professional team 、 Information system and distribution service mode .

We think , Sesame store is more like the long-term layout of Nongfu mountain spring private area , It is intended that one day no one will be able to sell , The water station bid farewell to the historical stage .

3 The farmer mountain spring DTC The transformation of The results and Enlightenment of

From the data point of view , Nongfu mountain spring implements DTC The transformation of since , In recent years, the packaging water business is booming .

DTC The transformation of There is no doubt about the advantages it brings to Nongfu mountain spring ：

• Improve marketing efficiency ： Build first-party data through private domain , Nongfu mountain spring can directly master user information and behavior , Continuous operation and wake up old users , And let marketing activities and promotional information Direct to consumers
• Improve the service experience ： By opening up the online and offline networks , The network of brands and platforms , Comprehensively accelerate logistics delivery ; Make sure that the user is All channels Enjoy consistent , Transparent services ; And it is convenient enough to obtain product information and preferential information
• Control terminal profits ： By controlling the user channel , Reduce opportunities for water stations to promote other brands ; Sync , The long-term strategy of sesame store layout , Gradually establish offline direct channels to consumers .

For now , Farmer's spring DTC The strategy is based on Yibao 、 Jingtian and other head drinking water enterprises . However, whether the strategy of sesame store will succeed ？ Whether the two private domain teams will compete ？ Whether the current private domain operation method can be sustained ？ We'll see .

Link to the original text ： The market share of packaged drinking water has ranked first for eight consecutive years , The farmer mountain spring DTC How it continues to grow ？

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