The bottled water industry in 2024 has been marked by an unprecedented wave of change and intensity, both at the executive level and within the retail marketThe landscape of this sector is transforming rapidly, driven by a series of high-profile incidents and fierce price competition.

The sudden passing of Zong Qinghou, the founder of Wahaha, in February has set off a chain reaction within the company and the larger industryHis daughter, Zong Fu Li, initially took over as chairwoman but faced a storm of speculation about her departure in July, which was later confirmed by shareholdersUltimately, Zong Fu Li returned to Wahaha, initiating significant internal reforms and the integration of a new management team.

The impact of Zong's death has exceeded Wahaha's corporate sphere, embroiling Nongfu Spring and its founder, Zhong Shanshan, in a controversial media stormFollowing these events, Zhong publicly criticized social media companies, urging them to disclose their user-engagement algorithms and stop practices he deemed harmful to society

This reflects a growing concern about the power dynamics within the media and corporate sectors.

On the market front, April saw Nongfu Spring reintroducing purified water to the market after more than two decades, sparking a fierce pricing warBy December, the company launched new mineral water products at competitive rates, further intensifying the battle among bottled water brands.

According to food industry analyst Zhu Danpeng, "The changes in the bottled water market in 2024 are far more pronounced than in previous yearsThis suggests that we are entering a new phase of market reshuffling." He predicts that the price war will persist into 2025, significantly impacting profit margins and forcing smaller brands out of the market, thereby allowing larger companies to seize a greater market share.

The shockwaves sent through the industry are not merely financial; they touch upon the identities of the brands involved

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The legacy of Zong Qinghou, often hailed as a pioneering entrepreneur, continues to resonate with consumersAfter his death, there was a noticeable surge in sales for Wahaha products as many patrons chose to express their support and respect by purchasing from the brand he builtIn 2024, Wahaha reported sales exceeding 70 billion yuan, marking a significant recovery to levels seen a decade prior.

Reflecting on Zong's legacy also rekindles past battles, notably the intense competition between Wahaha and Nongfu Spring, which included a courtroom clash in 2000 over marketing practices and claims regarding the health effects of purified waterWhile that dispute ended peacefully, it rose again in public discourse as the media spotlight intensified on both brands and their founders.

Despite Zhong Shanshan's efforts to distance himself from rumors, Nongfu Spring's sales took a hit in the first half of 2024 due to public backlash and online negativity

Industry expert Lu Shengzhen highlighted the complexities of corporate relationships, noting the often volatile nature of competitive dynamics where previous rivals can quickly become strategic partners.

Alongside these sweeping market changes, Wahaha engaged in its own significant restructuringIn July 2024, unsettling news emerged about Zong Fu Li's alleged resignation, citing doubts from shareholders about her management of the companyThis letter was swiftly confirmed, adding more layers to the narrative of instability within Wahaha's management.

However, subsequent developments saw Zong Fu Li reinstated as chairwoman and general manager, coupled with significant changes to Wahaha's board, as new blood entered the leadership ranks, hinting at a reassertion of control and a vision for the future.

As the price war escalated through the first half of 2024, largely led by Nongfu Spring, the response from competitors was swift

The company slashed prices on its natural and purified water lines, undercutting its rivals and igniting an all-out price warRecognized brands such as Yibao, Jian Tian, and others quickly followed suit, bringing down prices across the board.

Market data shows a duopoly in bottled water, where just five brands dominate significant portions of the sectorNot only do these established giants claim a large market share, but new entrants are also attempting to carve out their niches, albeit many without sustainable brand recognition or manufacturing independence.

In addition to this turmoil, Jing Tian's proprietary Baishui Mountain brand has concentrated on the premium segment, maintaining high prices in a marketplace increasingly defined by aggressive discountingThis strategic positioning has provided a buffer against the broader pricing pressures felt across the industry.

However, the competitive landscape is shifting as major players like China Resources Beverages, which owns Yibao, push forward with aggressive market expansion strategies, seeking to capture demographics across various regions

Their recent move to initiate an IPO demonstrates a commitment to leveraging capital for growth and expansion.

As 2024 drew to a close, Zhong Shanshan made another round of statements addressing the continued online harassment faced by Nongfu SpringHe criticized the algorithms used by social media platforms, asserting that many voices are suppressed under current systems that favor sensationalism over constructive discourseFurthermore, he expressed concern that these algorithms hinder rather than help public understanding and engagement.

Experts have indicated that the relationship between traditional industries and social platforms is evolving, necessitating tighter regulation to ensure that marketing practices uphold ethical standards and protect public sentiment from manipulationThe call for greater accountability is echoed by many, highlighting a critical analysis of growth-oriented strategies employed by companies in the digital age.

In the heated throes of change within the bottled water industry, Zhong has been candid about his views on the value of purified water, suggesting that it is not worth the hype and underscoring the need for mineral-rich options