Summary of Key Points
The beverage market as a whole faced a downturn in 2026, but the sales of 1-yuan water (including products from large companies with expiration dates, smaller miscellaneous brands, and budget-friendly alternatives) surged against the trend, eroding the performance of established brands. This phenomenon is the result of multiple factors working together: consumers prioritize low prices, distributors switch to smaller brands for higher profits, small manufacturers survive on low costs and by producing counterfeit or contract-made products, while traditional large companies lose market share by abandoning the low-price segment and harming their distributors. Budget-friendly alternatives, in turn, gain momentum through consumer trust in their distribution channels.
1. Consumers Choose 1-Yuan Water: Practicality Over Health Claims
Despite the market's emphasis on health and the rejection of high-fructose corn syrup (HFCS), distributors have found that consumers are most concerned with price. For example, 1-yuan water (about 5 yuan for a pack of 12 bottles) sells well through community group buying and shopping platforms like Duoduo Maicai. Consumers' criteria for judging the quality of water are straightforward: the thickness of the bottle wall—large companies thin the bottle walls to reduce costs (using nitrogen to create a sense of quality), which actually makes smaller brands' "sturdy bottles" more trustworthy. Some also believe that even if 1-yuan water is not of the highest quality, it's still better than tap water, and there's no need to pay a premium for a brand name.
2. The Dilemma of Distributors
Selling 1-yuan water from large companies is like trying to profit from a less profitable product, while smaller miscellaneous brands are much more attractive. Take Coca-Cola Ice Lu as an example: distributors purchase the product for 5-5.8 yuan per pack of 12 bottles, add a 0.5 yuan in wholesale, and sell it to retailers for 7 yuan, making a small profit at each step. The problem is that Ice Lu is not included in their sales targets, and they face penalties if they fail to meet quotas. Additionally, platforms often sell the product for 4.99 yuan per pack to attract customers, leaving distributors with little margin. In contrast, regional smaller brands can purchase the product for even lower prices (e.g., 4.2 yuan per pack of 12 bottles) and sell it to retailers for 6-7 yuan, with additional profits from special channels like construction sites and restaurants. These smaller brands are closer to distributors, offer subsidies, and provide cash on delivery, making them a more attractive option.
3. The Survival Strategies of Small Brands
Small brands adopt flexible tactics:
- Counterfeiting: There are dozens of companies that imitate the JIMAILANG Blue Label brand, and despite JIMAILANG's anti-counterfeiting efforts, these products continue to be sold in rural markets.
- Low-Cost Production: Those with access to water sources avoid claiming their product as "mineral water" (the cost of obtaining a mining license is too high); those without water sources simply fill the bottles with tap water.
- Contract Manufacturing and Cash on Delivery: They accept contract manufacturing orders from distributors, delivering the products immediately without holding inventory.
- Low-Risk Approaches: If their product succeeds, they become regional versions of well-known brands like Quanyangquan; if not, they can try again with little risk due to their low costs.
4. How Traditional Large Companies Lost Their Market Share
A few years ago, large companies drove 1-yuan water out of the market through channel monopolies and price wars. Now they have abandoned the low-price segment and shifted to mid-to-high-end products. What's even more disheartening for distributors is that price increases only harm them (for example, Wahaha raises prices only for distributors, not for retailers), showing a lack of respect for their partners. To find new growth opportunities, distributors are collaborating with smaller brands, labeling these products as "alternatives" and cutting out middlemen, making consumers believe that the low price is due to the absence of a brand premium. The market space vacated by large companies has been filled by smaller brands.
5. Why Are Budget-Friendly Alternatives Popular?
The popularity of budget-friendly alternatives is due to channel endorsement and the elimination of middleman profits. These products are not simply counterfeits; they are directly marketed through trusted distribution channels such as local supermarkets and chains, which reassure consumers with their quality guarantees. Although some platforms may select products based on basic criteria (as long as they are safe), consumers are willing to give them a try, often experiencing "surprises" that further boost sales.
In Conclusion
This is not a case of "consumption downgrade"; rather, it reflects more rational consumer behavior. Large companies need to reflect on why they have been abandoned by consumers. Small brands must maintain quality standards, and consumers should choose reliable channels when purchasing low-priced products. After all, both affordability and safety are important considerations.