Nongfu Spring Is Working on a Diversified Product Matrix and Striving to be the Domestic Beverage Giant

2022-01-18

 

Throughout the market, some enterprises prefer building themselves on the shoulders of giants, while the others seek to be giants since their establishment. Obviously Nongfu Spring belongs to the latter. Instead of creating a new brand in the mature market, Nongfu Spring is devoted to developing new industry concepts and standards without competitors and establishing a new aisle where it can be the pacesetter.

Rated as the porter of nature, Nongfu Spring has maintained high growth over the recent years and given back to customers with its high-quality products. Nongfu Spring possessing an industrial innovative consciousness certainly won’t limit itself to just producing water. With the channel-based horizontal diversification strategy (that is, rely on a certain product to establish a sales network and empower products superposition after the product enters the terminal market), Nongfu Spring builds up its own product matrix and forms a category layout including bottled water, fruit and vegetable juice, tea, functional drinks and more. Aside from that, Nongfu Spring retains its strategic logic for drinking water on the new aisles and devotes much energy to developing product, promoting new standards and concepts, establishing itself as the standard and rule maker as well as the trendsetter in the industry and delivering on personalized drinking demands of consumers with diversified categories. Nongfu Spring has made constant efforts to expand product lines with its entry strategy into tea drinks, functional drinks, fruit juice drinks and other industries. In addition to Nongfu Spring, the company also has many other brands such as Oriental Leaf, Tea π, Farmer’s Orchard and NFC juice, all of which ranks among the top three market share. Affluent product matrix and product diversity enable Nongfu Spring to make flexible product combinations according to the characteristics of different markets and channels.

Nongfu Spring starts to dip its toe in the beverage deep-processing industry after standing firmly among the top three in the industry. From 2003 to 2004, it debuted Farmer’s Orchard mixed fruit juice beverage and Scream Energy Drink functional beverage in succession. Scream Energy Drink and Mizone came into the market in the same year, while at that time there were already red bull and other functional beverage products on the shelves. But in such "crowded" functional beverage sector, Scream Energy Drink successfully changed the impression that a functional beverage was "unpleasant to drink", thanks to its unique flavor and various nutrition. And the innovative bottle design helped win a larger consumer market. Nongfu Spring already has a strong presence and booming business in the beverage industry, but its ambition goes further than delivering "mountain spring" as it makes unremitting efforts to develop its role as a "farmer". "Agriculture is still a short board in China’s industrial development process, while "Nongfu Spring is brave in cracking this hard nut of agricultural products, launching 17.5° Orange, Apple... In 2019, Nongfu Spring reviled natural birch juice spray and high-quality soybean-based yogurt.

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As the business scope of Nongfu Spring continues to grow, its advantages in drinking water and tea space are getting increasingly obvious. From the current development trend, Nongfu Spring is promised to take the leading role in fruit juice sector in the coming three years, based on its advantages in industrial chain, channel and brand strength. Currently it has worked out three fruit juice products in NFC fruit juice set, and is doubling its efforts to build FMCG + agriculture model. This also indicates that Nongfu Spring's crossover has finally achieved positive results after ten years of exploration and has ushered in a new stage of development in fresh fruit and cold pressed fruit juice sector.

What behind Nongfu Spring’s brilliant achievements is the unremitting commitment to seeking in-depth development in its own field over the last two decades and more, assiduously elevating the products, channels and supply chains, tapping brand spirits and brand connotations, investing in R&D, formulating industry standards based on unceasing exploration and studying young people and propagating in a scientific way. From these we can see that Nongfu Spring has both courage and strategy, which is also the mean reason for its success. Though some of its behaviors are not that welcomed by the industry, what it has done for products, channels, brand spirits and industry standards on the whole merit attention from today's enterprises.

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