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China 2016: CATEGORIES IN BRIEF | Soft Drinks

WATER BRAND VALUE SURGES ON HEALTH, PREMIUM TRENDS

The soft drinks category reappears in the BrandZ Top 100 Most Valuable Chinese Brands. The one brand represented is the local Chinese brand Mizone, a flavored energy water from the French company Danone.

Mizone grew in brand value at a time of slower sales growth across most fast moving consumer goods (FMCG) categories, with the rate of overall FMCG spending growth declining from almost 12 percent in 2012, to 5.4 percent in 2014, according to Kantar Worldpanel.

The appearance of Mizone in the BrandZ China Top 100 relates to several other overlapping Chinese consumer trends, including the rising interest in personal health, and the willingness to pay more for a perceived quality di erence. Along with beer, skin cream, and yoghurt, bottled water is one of the items for which Chinese consumers are willing to pay a premium. 

The average selling price of  bottled water increased 6.4 percent between 2012 and 2014, according to Kantar Worldpanel. That rate of increase places bottle water toward the upper end of products, across 26 categories, that experienced selling price changes, ranging from negative 1.8 percent to 13.5 percent.

Mizone also benefits from the corporate reputation of Danone as a leader in food production safety. Trust remains relatively weak in China, particularly in the food and dairy category. But Trust also is especially important as a brand di erentiator in China, according to BrandZ research.