In the capital market, this bottle of water may be very sweet at this time, but it is far less impressive than Coca-Cola and Maotai. How to stand out in this battlefield without smoke is worthy of Nongfu Spring's continued thinking.
Once Nongfu Spring was "a little sweet", now Nongfu Spring is "a little thirsty".
On the evening of April 29th, Nongfu Spring officially submitted its prospectus to the Hong Kong Stock Exchange, with CICC and Morgan Stanley as co-sponsors, and the fundraising scale is expected to be US$ 1 billion. A huge bottled water "empire" surfaced.
in the past 2 years, there has been a constant news about the listing of Nongfu Spring.
As early as 23, Nongfu Spring was designated as a "company to be listed" by Zhejiang Securities Regulatory Bureau. Until January 12, 219, the Report of CITIC Securities Co., Ltd. on Termination of Nongfu Spring Co., Ltd. issued by Zhejiang Supervision Bureau of China Securities Regulatory Commission showed that Nongfu Spring had been listed by CITIC Securities for 1 years, and the counseling agreement was terminated in December 218 through friendly negotiation between both parties.
After more than 1 years of listing counseling, Nongfu Spring has not been sent to the A-share market. In the face of a heated debate, Zhong Shanshan, the chairman and general manager of Nongfu Spring Co., Ltd., only dropped a sentence: "The capital market pays attention to demand and demand, and Nongfu Spring has no demand, so there is no need to go public" and responded to the debate.
compared with the cold treatment of Nongfu Spring IPO, Zhong Shanshan is more concerned about the listing of its brother company Wan Tai Bio. According to reports from the investment community, in 21, due to unsatisfactory business conditions, Wan Tai Bio's equity was frequently transferred. Zhong Shanshan, who took a fancy to the big health map, won Wan Tai Bio in one fell swoop, and directly and indirectly held 83% of its equity, becoming the actual controller of Wan Tai Bio. Since June, 216, Wan Tai Bio has taken the step of listing. After three years, it submitted its prospectus for three times and went public as expected.
The brother company here has just finished ringing the bell, and Nongfu Spring, which "doesn't need to be listed" on the other side, goes straight to the IPO of the Hong Kong Stock Exchange?
Some people think that Nongfu Spring's move is not sudden, or it needs new blood to enter the 2. era, and it has also hit A shares.
According to the report of Tiger Sniff. com, the current valuation of Nongfu Spring has reached HK$ 1 billion, and some optimists even shouted a "bid price" of HK$ 13 billion. Nongfu Spring has strong profitability, and the prospectus lets the outside world know that Nongfu Spring, which kept saying "no listing", has been making a fortune in silence.
From 212 to 219, Nongfu Spring maintained the first market share of packaged drinking water in China. Cyanhill Capital's research report also shows that in the bottled water industry, Nongfu Spring has a market share as high as 26%, followed by Ipoh (21%), Baisui Mountain (1%), Master Kong (9%), Binglu (9%) and Wahaha (7%).
The most common bottle of 55ml Nongfu Spring drinks natural water, and the retail price of supermarket is only 2 yuan/bottle, while the price of 12 bottles per box on e-commerce platform is 15.9 yuan, which is less than that of 1.4 yuan on average.
packaged drinking water with low price has high gross profit margin.
According to the report of the city, the gross profit margin of packaged drinking water products in Nongfu Spring has not changed much from 217 to 219. Taking the latest data in 219 as an example, the gross profit margin of packaged drinking water products in Nongfu Spring is as high as 6.2%.
In the sales cost of Nongfu Spring, raw materials and packaging account for the largest proportion. Taking 219 as an example, the raw materials of Nongfu Spring include PET used to produce product bottles, sugar, juice, etc. However, single PET accounts for 31.6% of the sales cost; Including cartons, labels, shrink films and other packaging materials, accounting for 31.5% of the sales cost.
the core of nongfu spring-water source is the cheapest.
I believe that most readers' deepest impression of Nongfu Spring is the advertising slogan "Nongfu Spring is a little sweet", in addition to the striking red lid on the package.
after decades of operation, nongfu spring has made this package its exclusive symbol. However, since 215, Zhong Shanshan has made great efforts in the design of Nongfu Spring, started to innovate, embarked on a high-end international route, and spread by Yan value.
according to the enterprise investigation, Nongfu Spring Co., Ltd. has applied for the most patents on design.
The design of this treasured bottle body was invited by five studios in three countries, and it took three years, 58 drafts and more than 3 designs before it was finalized. The design also won five international awards in the field of packaging.
In 215, Nongfu Spring Company applied for 9 design patents for this bottle sticker (China Design Authorization AnnouncementNo.: CN3326761S- CN3326767S, CN3325794S and CN3371157S).
in 214, the design of the student bottle was applied for an appearance patent (China Appearance Patent Authorization AnnouncementNo.: CN33263622S), and the applicant applied for bottles with different heights as similar designs. At the beginning of 215, four patents were applied for the design of bottle stickers in China (China Design Authorization AnnouncementNo.: CN33257919S, CN33257918S, CN33257917S, CN3326771S).
Nongfu Spring Company also applied for ***3 patents for baby bottles in China in 214 (China Design Authorization AnnouncementNo.: CN33117972-CN33117974S). By comparing with the actual products, Nongfu Spring Company finally chose the appearance with the announcement number "CN33117973S" as the packaging of the main product.
It is reported that the sales of the above three novel bottle designs exceeded 1 million in eight months, and the popularity and corporate brand image of Nongfu Spring have been improved.
Lu Haotong, from the Appearance Department of Beijing Center, once said that the bottled water market is fiercely competitive, with many brands and consumption gradually moving up to the high end. For example, Evian, Paris Water and other brands have increased significantly, and Nongfu Spring, which is dominated by natural water, may be affected to some extent. Nongfu Spring Flower pays so much attention to patent application, and its connotation is to increase the demand by changing the appearance of packaging bottles and improve the added value of products.
In the capital market, this bottle of water may be sweet at this time, but it is far less impressive than Coca-Cola and Maotai. How to stand out in this battlefield without smoke is worthy of Nongfu Spring's continued thinking.
(This article only represents the author's point of view, not the intellectual position)