Sales Networks

We have developed a variety of strategies targeting the premium market segment and expanded traditional retail distribution networks. We have also developed a water card that allows its holder to redeem and receive direct delivery of our premium water throughout China. This water card system has enabled us to access the distribution networks of certain institutional purchasers which are not traditional distributors of consumer products.

Institutional Sales Network

Building on the experience of our highly successful relationship with China Railway Express, we have entered into strategic relationships with Air China that provides our product to their passengers as part of their in-flight service. We have also secured deals with other institutional purchasers including BP-PetroChina JV, CCB International, ICBCI Holdings and China Post that offer our premium bottled water as gifts to customers under loyalty programs and also distribute our products through their extensive networks.

Our strategic relationship with China Railway Express, which is controlled by the Ministry of Railways of the PRC has enabled us to become the supplier of bottled water to approximately 200 million passengers on high-speed and CRH trains in China. We distribute our product to retail outlets and restaurants in 131 train stations and 115 mid- to high-end hotels across China and on board trains that make approximately 2,800 train trips per day.

Sales for PRC Government Organizations

PRC Government Organizations are our key institutional purchasers. We have supplied to high profile government conferences and events, which has further enhanced our brand image and recognition. We were the official supplier of bottled water for the following events:

  • People's Republic of China Pavilion at the 2010 World Expo in Shanghai
  • Ceremony celebrating the 60th anniversary of the founding of the People's Republic of China in 2009
  • Chinese People's Political Consultative Conference since 2008
  • Meetings of the National People's Congress since 2007
  • Cross-strait conferences between the Straits Exchange Foundation and the Association for Relations Across the Taiwan Straits

Retailed Distribution

Our retail distribution networks have been rapidly developed to cover a wide range of retail outlets, including hotels, bars and restaurants, supermarkets and convenience stores. Our points of sale increased from 4,102 at the end of 2011 to 6,187 in the first half of 2012, excluding the sales network under Ministry of Railways. In August 2011, via an agreement signed between our distributor and a supplier for over 6,000 convenience stores of Sinopec gas stations in the Eastern China, 5100 Tibet Glacier Spring Water is now widely available at these convenience stores, which has not only strengthened our sales and marketing capabilities but also enhanced our sales and distribution network.

 

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