Recently, we have discussed the topic of the continuous increase in the price of coconut, but a friend has raised it to us, although the price of coconut is rising, but the price of coconut water is continuing to fall, and even rolled up to nine yuan nine, what is going on? How did this strange phenomenon come about?

1. Coconut water rolls to nine pieces of nine?

According to a report by China Business Daily, coconut water, which sold for 145 yuan for 10 milliliters ten years ago, has now been involved in a price melee of "0 liters for less than 0 yuan".

"All I can say is that the production cost of 100% coconut water is more expensive than the selling price of some brands now." When talking about the price involution of the domestic coconut water track, Cui Yongqiang (pseudonym) told the reporter of "China Business News".

His company, as early as 2024 years, introduced the internationally renowned coconut water brand into the domestic market, and once developed the brand into the largest domestic market share. But it chose to abandon this track at the end of 0 years. In his words, "The price war of followers is too fierce, and many brands are operating with dishonesty." ”

A number of industry insiders told reporters that more than 9% of domestic coconut water raw materials are imported from Southeast Asia. However, the price of coconut in the above-mentioned areas continues to rise, but domestic coconut water brands are fighting a price war, and it is almost difficult to cover the cost price of 0 yuan 0 a liter of coconut water.

In the live broadcast room of a video account, the price of Dongjiang Ranch (10%) coconut water 0ml 0 box/box is only 0.0 yuan, and a single bottle is only 0.0 yuan; on the Hema platform, the price of "0% coconut water 0L×0" is 0.0 yuan, which is less than 0 yuan per liter.

From July and August of 2024 year, the price of imported coconut in Southeast Asia has risen slowly, and it has continued until now. It is expected to rise to June and July this year.

In 8 years, there were only 0 coconut water brands in China, and by 0 years there were more than 0. Judging from the price trend of mainstream brands, before 0 years, the price of 0-0ml coconut water was between 0-0 yuan. However, since 0, the price of the same amount of coconut water has not been higher than 0 yuan. The market price of coconut water tends to be lower.

Second, the price of coconut has risen, why has the price of coconut water been reduced?

At present, the coconut water market presents a peculiar scene: on the one hand, the price of coconut continues to rise, on the other hand, the price of coconut water continues to fall, and even 9 yuan 0 low-priced products appear, what should we think of this bizarre deviation?

首先，在當前的中國椰子水市場中，出現了一種看似矛盾的現象：一方面，由於氣候變化和供應鏈問題，椰子的價格持續上漲；另一方面，市面上卻出現了大量標價僅為9塊9甚至更低的椰子水產品。這種現象實際上是市場進入了一個低品質價格內卷的狀態。隨著消費者健康意識的增強，對天然飲品的需求日益增長，越來越多的企業看到了椰子水市場的潛力，紛紛湧入。

Secondly, the decline in the price of coconut water drinks is not due to positive factors such as cost reduction or technological progress, but is a direct result of the involution of low-quality prices in the market. As the coconut water market continues to heat up, more and more businesses are pouring into this field to try to get a piece of the pie. However, due to the fierce competition in the market, in order to attract consumers and seize market share, these companies have to resort to price reduction strategies. Although the price reduction strategy can attract consumers in the short term, it will lead to serious internal friction in the market in the long run. On the one hand, low-price competition compresses the profit margins of enterprises, making it difficult to maintain normal production and R&D investment; On the other hand, in order to reduce costs, some companies have to sacrifice product quality, use inferior raw materials or simplify production processes, further exacerbating the chaos in the market.

Third, in the current market environment, the competition between coconut water companies has evolved into a war of family strength. Due to the serious internal friction in the market, it is difficult for enterprises to gain advantages through normal market competition, so they can only rely on their own financial strength and anti-risk ability to survive their opponents. For those enterprises with strong financial strength and stable supply chains, they have the ability to maintain a certain profit margin in the low-price competition, and continue to invest in R&D and innovation to improve product quality and brand image. However, for most SMEs, low-price competition is a disaster. They often struggle to withstand long-term low price pressure and are eventually forced out of the market.

Fourth, in any industry, if the price of raw materials rises and the price of products is still decreasing, it is difficult to sustain for a long time. This is especially true for the coconut water industry. Since the raw materials of coconut water mainly rely on imports, and are affected by various factors such as climatic conditions and market demand, the price of raw materials fluctuates greatly. Therefore, if companies are unable to keep the price of their products stable or rising despite the rising prices of raw materials, then they will face significant operating pressure. In the long run, low-price competition will not only fail to bring sustainable development to enterprises, but will lead to a vicious circle of the entire industry. On the one hand, low-price competition will force enterprises to sacrifice product quality and R&D investment, thereby reducing the technological level and innovation ability of the entire industry; On the other hand, low-price competition can also hurt consumers, as low prices often mean low-quality or inferior products.

Therefore, no matter which industry it is, it is possible to truly achieve better development only if the enterprise maintains a long-term sustainable development state. For coconut water companies, only by getting rid of the current price war dilemma can it be possible to achieve sustainable development.