Bottled Water in China – Industry


The industrial revolution brings financial wealth and prosperity. China is no exception. The Asian tiger has seen great industrial and economic development in recent decades. As a result many companies from the United States have moved their production operations either partially or wholly where cheap labor and mass production is available. In recent years China has become a place to produce goods for customers around the globe. Many industrial cities in China have seen an increase in pollution as factories dispose their waste including, paper, dye, fertilizer, chemical waste, and many other different products.

Many companies have chosen to get rid of their waste by dumping it in lakes, rivers, and canals, which are the main source of drinkable water for millions and millions of local residents. Environmental laws in China are not implemented as those in the United States because of fear of factories closing and rising in unemployment. There is a great business opportunity to convert contaminated water or to find way to provide clean potable water and make it available to millions of residents in China.

Water is essential to human survival. In order to provide a viable solution to China's water problem, the companies engage to create a team to do research, design and develop a product to sell clean water in the Chinese market. The potential for business profit is endless because of the necessity for clean water. For example, this year some of the sources of water were not available for human consumption and a large bottle of water in China jumped from $ 1 a bottle to $ 6. Different environmental organizations are seriously concerned about this problem. Engineers and scientists are working hard to find the best solutions.

In the process of trying to clean and save the Tai Lake in Wuxi, which provided potable water to 5.8 million residents, Chinese environmental groups spent more than $ 1.3 billion. Like most natural resources clean drinkable water is limited. We must find ways to provide clean portable water to Chinese citizen and at the same time it would be a great opportunity for business expansion to the global market.

China is home to 1.3 billion individuals and is the most densely populated country in the world, making bottled water in China a potentially lucrative business. Although the total consumption of bottled water in China is substantial, the per capita consumption is low, about 1/15 of that in the United States. Its large population opens doors for investment and save their citizen from consuming contaminated and toxic water. We suggest the creation of a research team to expand upon the already existing desalination plant to produce fresh water, a team that will develop a biodegradable and recyclable bottle, label, and containers that are both functional and attractive, and a legal team that will advise managers and will also seek intellectual property rights for the company.

Water Purification

The water purification research team will be contracted of local engineers and scientist who will work as interns. This is a very effective method of getting professional work completed without spending a large portion of the budget on pay for high-level engineers. By creating internship positions that hire new graduates of Waste water treatment programs at major universities, we will have a lower overhead costs and will not jeopardize quality of work and knowledge of the staff.

Desalination is one of mankind's earliest forms of water treatment. In the past this method was used on ships to convert sea water into drinking water. To desalinate seawater is the "reverse osmosis" method. Today there are several plants in the United States and in other arid regions of the world these desalination plants are used to convert sea water to drinking water.

A plant in Florida desalinates water at a cost of $ 650 per acre foot. What our purification research team will work is to produce better tasting water through an improved distillation process. The demand for bottled water in China increases as the need for fresh water rises. The world's population is increasing, global warming is affecting water supply and factories are coordinating the main sources of clean water. We can forecast the great need to provide clean water not only in China but around the world.

The creation of purification and desalination plants is the first step to make this service available in China, facilitating bottled water in China. It is recommended to hire a third party to conduct tasting to verify the quality of the water and to make sure that the water that is going to be available for human consumption is absolutely free of any toxin chemicals or other mineral substances. After the third party affirmed the highest quality of clean water the plants will seek certification by the World Health Organization standards for potable water.

Designing the Best Bottles

In today's business all companies understand the importance of developing new attractive design, label, and patent protection for good even in a country that it is well known for being a copy master. Research reports of previous bottle designers will be reviewed and our design team with attempt to create a superior package for our product. The bottle will focus on being ergonomic for comfort and handling of the consumer, attractive to appeal to all ages. Scientist work on developing biodegradable and environmental friendly bottles. We want to make sure that when customers see our product in the grocery shelf our bottle will be pick first.

If any of this is to be possible, however, it will be necessary to be granted the proper business license. As in the United States, there is paperwork that must be filed to earn the equivalent of a DBA. While the paper process is not all that complex and can be achieved for a slightly less amount of money, most potential foreign business people are wholly unaware of Chinese laws, specifically business law. The necessary information can be obtained by contacting or visiting the website of the corresponding Chinese government agency.

WFOEs require a minimum investment of $ 13,000 – $ 65,000. Those who can afford the expensive licensing requirements, will be afford several advantages. For instance, WFOEs have independence and freedom to execute the worldwide strategies of its parent company without needing to consider the involvement of the Chinese partner. This choice also provides business owners the ability to typically carry out business as opposed to merely functioning as a representative office. There is also the option to issue invoices to customers in RMB and receive revenues in RMB. Furthermore, RMB profits can be converted to US dollars for remittance to its parent company outside of China. In general, a WFOE offers greater efficiency in operations and management while also allowing for future development.
Once all the paperwork and legal aspects are completed, business owners offering bottled water in China bought to reassess their marketing plan.

It would be a grave error to assume that products can be marketed in China the same way they are marketed in the United States. After all, there are several significant cultural differences. These cultural differences encompass values, a key aspect of marketing. Many Chinese values ​​include elements that stem from ancient beliefs and traditional Chinese values, for instance loyalty, honor, honesty, kindness, and patience. As such, marketing should focus creating ways to link China bottled water to these elevated values. An effective marketing campaign should create the feeling that by drinking China's bottled water, the customer will gain these attributes.

For legal reasons, however, this common marketing tactic will not be directly stated, only implied. People buy products because of the way it makes them feel and what they perceive it to represent. Moreover, there are dozens of cases where businesses sold the same exact product but marketed it differently, resulting in significant differences in sales.

In order to strategically evaluate the bottled water industry in China, analyzing the competition is a logical starting point. As a result, legitimate China bottled water companies would benefit by implementing additional measures to ensure their consumers that their water is clean and extremely highly pure. Marketers could make use of this fact to convince customers not to buy from the competition. In order for this to be effective, however, there will need to be several reassurances and authoritative documentation of its purity, possibly a lab comparison.


Source by John Halas

Add Comment