On November 20, the public statements made by Zhong Shanshan, the founder of Nongfu Spring, regarding the launch of green bottle purified water stirred controversy. His comments shifted from emphasizing “providing choices for consumers” to describing it as an “impulsive move,” raising questions in the market due to their contradictory nature.
In 1996, Zhong Shanshan began his purified water business by the Xin’an River. However, after realizing the importance of minerals in water, he pivoted entirely to natural spring water. This April, Nongfu Spring unexpectedly released green bottle purified water, priced as low as 9.9 yuan for 12 bottles, attracting significant market attention.
In August, during an interview on CCTV’s “Dialogue” program, Zhong explained that the introduction of purified water was a response to debates surrounding the slogan “Nongfu Spring is a bit sweet,” stating that it was to “return the choice to consumers.” He indicated that consumers could choose based on their needs: “If you want it a bit sweet, drink the green bottle purified water; if you want health, drink the red bottle natural water.”
Just three months later, on November 19, at a seminar in Ganzhou, Jiangxi, Zhong changed his narrative, calling the launch of the purified water an “impulsive act.” Confusingly, he expressed that he “still does not want consumers to drink the green bottle water” and emphasized that he hopes consumers will only drink it occasionally, not as a long-term choice for families.
This flip-flop has left investors who closely watch Nongfu Spring questioning the consistency of his statements, creating multiple controversies.
From a product positioning perspective, the 2024 semi-annual report from Nongfu Spring states that the green bottle purified water “comes from high-quality natural water sources,” contradicting Zhong’s suggestion against long-term consumption.
From a market strategy standpoint, while Zhong described the launch of the “small green bottle” as a “very restrained” act, the actual market execution shows a strong offensive strategy. With a single product specification of 550mL, extensive shelf coverage, and ultra-low promotional pricing, consumers are left to doubt the purported intent of “occasional consumption.”
Regarding pricing strategy, Zhong clearly opposes low-price competition, mentioning that “platforms like Pinduoduo drive out good products with low-price tendencies.” However, the green bottle water is priced below its main competitors. On one hand, Zhong criticizes low-price competition for damaging the industry ecology; on the other hand, Nongfu Spring enters the purified water market with extraordinarily low prices.
Some investors believe that Nongfu Spring’s move is to penetrate the market with low-priced purified water while using differentiated pricing to reinforce the high-end positioning of its natural water.
Yet, consumers express confusion over this strategy. “Previously, the green bottle water could be seen as a way to divert contradictions and public opinion. Now that Zhong Shanshan himself looks down on the green bottle, it completely negates the significance of its existence.” Zhong’s disavowal of the green bottle water has left investors and consumers perplexed. “If Mr. Zhong does not recognize the long-term drinking value of purified water, why launch it and engage in a price war? This ‘self-denial’ logic makes the positioning of the green bottle water even more ambiguous.”
Consumers have also pointed out a flaw in the marketing logic, questioning, “Who only drinks water and not eats? Isn’t the bit of minerals necessary?” They criticize Nongfu Spring’s previous marketing strategy that equates natural water with health.
Zhong Shanshan’s contradictory remarks regarding the green bottle water have, to some extent, affected consumer recognition of Nongfu Spring’s brand positioning. While the differentiation between “sweet” and “healthy” marketing intentions is clear, the actual pricing strategy and product promotion have blurred the brand’s core value.
Zhong has repeatedly stated that Nongfu Spring’s original intention is “to provide consumers with healthier drinking choices,” yet market feedback suggests that this intention seems less pure with the launch of the green bottle water.