Why is French Evian mineral water so expensive? Let’s analyze it in detail.
Evian comes from the Celtic word "evua", which means "water". The source of Evian natural mineral water is the small town of Evian in France. It is backed by the Alps and faces Lake Leman, far away from any pollution and human contact.
After 15 years of natural filtration and mineralization of glacial sand layers, the long natural filtration process injects natural, balanced and pure mineral ingredients into Evian mineral water, which is suitable for human body needs and safe. healthy. Evian natural mineral water is bottled directly at the water source, without human contact or chemical treatment, and more than 300 water quality inspections are conducted every day.
The price of general commodities = production cost + tax + profit, but because the brand price of light luxury brand positioning mostly includes the value of the product brand, that is, price = production cost + tax + profit + product brand value.
1. Since it is an imported product, it must face tax issues. Food import tariffs plus food import value-added tax, and it also requires exchange rate conversion, etc., resulting in relatively high domestic prices.
2. Evian’s market positioning is high-income white-collar workers. Everyone should be more or less familiar with the TV series "Ode to Joy". Evian has done advertisements through this TV series. Among the five heroines in the TV series, only Andy, a senior white-collar worker who has returned from overseas, drinks Evian. This is in line with Evian's brand promotion, so Evian's market positioning is white-collar workers, rich, and pursuing brand value and water functionality. So even if the price is expensive, many people buy it, and the price caters to the needs of these people.
3. As mentioned at the beginning, the formation of Evian water was completely completed by nature in a leisurely manner over 15 years, which is beyond the reach of any modern large-scale and rapid production of beverages. Absolute naturalness has become the best footnote for Evian water’s high-end positioning. More importantly, because the soil layer that filters Evian water brings rich and balanced mineral components to Evian, Evian can well meet people's physiological needs and has certain medical effects. This medical effect was authoritatively certified by the French Medical Research Institute in 1878, further strengthening the high-end status of Evian water.
4. Evian mineral water occupies about 10% of the international market. It is a product circulating in the international market. It is not difficult to find that the pricing of Evian mineral water is not the same in almost all places. (Based on conversion into RMB). The retail price of a 1.5L bottle of origin in Europe is about RMB 7, and the wholesale price starts from 55 boxes for a total of 660 bottles. The FOB price of a box is 4.72 pounds, which is equivalent to RMB wholesale price of about 3.98 yuan/bottle. The cheapest 1.5L model in the domestic market is priced at 20.7 yuan, which is almost five times the price in Europe.
There will be price differences between the eastern and western regions of China, and there will be price differences between different consumption venues such as 5-star hotels and high-end clubs, and there will even be price differences online. However, the pricing of similar products is very stable, so it can be basically judged that Danone Group uses two pricing strategies: zone pricing and basis point pricing. That is, the regions are first divided, and each region implements different prices but implements a pricing strategy of base point pricing within the region.