Having been engaged in potable water delivery …Having been engaged in potable water delivery in offices and on the house, the small companies can become dynamical participants of an emerging market butilirovannoj waters. Experts expect that it will grow at least on 30 % a year. However, in capital will find the niche difficultly, but in regions the input on the market for new players is opened.
this business in Russia is very young, and printing sources allow to define its age precisely enough. On a corporate legend of company Clear Water (CW, “ Pure water “) - And while anybody did not try to challenge superiority of this firm - founder CW Scott Nikol in the beginning of 1993 in Moscow personally on “ to the nine “ carried to the friends - to the foreigners working in Russia, pure water. - 1000 standard 19 - litre large bottles - he has sold the first container for $11 thousand, that is on $11 for a bottle. Nowadays the prices in capital have fallen almost twice.
Foreigners remain the most true consumers of the given service. By the way, in capital all companies-leaders of this market (“ Pure water “ “ Royal water “ “ the House of water 2000 “ “ the Sacred source “) Too have a foreign extraction.
It is possible to assume that the first Russian companies - clients, getting butilirovannuju potable water and a cooler (the device with which help the client receives water from standard 19 - a litre large bottle in nagretom or the cooled kind), simply imitated the western partners. After all the Russian consumers it was necessary to accustom to such service still, and on it time was required. To buy potable water in bottles at the time of the USSR came to to nobody mind. In the market were only mineral water yes aerated water “ from the automatic machine “. Historical experience of our fellow citizens affects till now specificity of the market.
this new Russian market has strongly dropped August crisis of 1998. The director of company Clear Water for marketing Sergey Tratsevsky: “ On pre-crisis level our company left only last year “. But for 2003 he names 15 - percentage growth by the lowermost lath, and in the most competitive market - capital. Representatives of the companies on delivery at its finest in the Russian cities too unanimously assert that the market roughly grows last two years and involves the increasing number of the companies - participants.
Unfortunately, in Russia while anybody seriously did not study the market of delivery of potable water. But the data of known research company ASNielsen on retails butilirovannoj potable water in 14 cities of Russia (the schedule see) - and it is possible to assume that rates of increase of these markets are very similar - confirm opinion of experts. It is possible to rely and on centenary experience of corporation Nestle - its experts expect that in the near future on sales butilirovannoj waters in Russia there will be very strong jerk. Last year Nestle has bought the company “ the Sacred source “ 25 which % of sales are necessary on potable water delivery in offices, and new owners are interested in development of this business.
In the company “ Pure water “ estimating prospects of growth of business, the number of the offices captured by these service (overwhelming number of consumers - legal bodies) start with. According to Sergey Tratsevsky, in the USA services in water delivery use 90 - 95 % of offices, in Moscow - no more than 30 %.
the Season all year long
Seasonal splashes this market unlike a water consumption in the bottles, on sale at retail, has no. Ilona Sergeeva from the company “ the Divine source “ says that the decision to pass to kulernoj to the program has ripened just from - that sales of usual bottle production “ the Divine source “ during the cold period of year sharply fell. For water in 19 - litre container and kulernyh programs it is irrelevant. Sergey Tratsevsky: “ the Water consumption is approximately identical both in the winter, and in the summer. In easier summer people drink more than pure cold water, and in the winter the same quantity of a liquid is drunk in the form of tea and coffee “.
At a margin from $1 to $1,5 between the price of purchase and by sale of a large bottle with water the company - the supplier should sell from 500 to 1000 large bottles in a month depending on region to pay back the current expenses. Each bottle sold over specified quantity, will make profit. So, at a break-even sales level about 2000 large bottles initial investments will pay off during 7 - 10 months.
it is necessary to note importance of a price situation in the concrete market. Leaders of the market in Moscow sell water at the price of $6,5 - 8 for a large bottle. If water of an average price range and quality there are $5 for a large bottle. But borders between them accurate enough, and the companies selling water of different categories, each other do not disturb. The situation in St.-Petersburg strikingly differs. Here conditions dictate the firms entering the market with very cheap water. Yury Osipov, the general director of the Petersburg company “ the Water world “: “ In the Petersburg market the client pays for a standard large bottle of potable water on the average 70 rbl., but it is possible to find and for 30. At such prices limps both quality of water, and a degree of service of clients “. Many experts are assured that the water which has passed processing, cannot be on sale at such prices at all, and its quality does not maintain any criticism. For example, even in Lipetsk the client pays for a large bottle on the average 120 roubles. The price wars which broken the market and have sharply lowered quality of offered water, are observed while only in St.-Petersburg. But danger of repetition of such situation exists and in other cities.
Pumping stations and water carriers
the Companies which are engaged in this business, accurately share on two groups: the manufacturers of water incurring as well its delivery, and the companies, the water not having. For example, in Moscow the market lion`s share is occupied with firms with own systems of clearing and water flood. In Ekaterinburg, on the contrary, the majority of the companies - pure suppliers.
fountain History In 1950 - h years of installation with pure potable water were issued already with cooling systems, and next three decades, having undergone a number of changes in the plan of design and becoming more compact, coolers have started to win to themselves space at offices of large American corporations. Their fast distribution which peak has had on the end 1990 - h years, in many respects was promoted also by a fashion on the use of non-polluting foodstuff. So, according to magazine Consumer Reports, in 1980 - m the average citizen of the USA for a year drank only 6 litres of the cleared potable water, and in 2001 - m - already 60 - 70 litres. not less prompt rates the market on manufacture kulernyh installations and in Europe developed. According to researches of consulting company Zenith International, only over the last 10 years its annual gain on the average made about 30 %. In 1993 on the basis of branch American International Bottled Water Association has been created European Bottled Watercooler Association (EBWA), incurred functions of the body supervising and co-ordinating activity of national manufacturers of water for kulernyh of installations. the British holding in the lead positions in the market throughout last five years concern number of the largest. To it in many respects promoted Bottled Water Cooler Association (BWCA), formed in 1989 for protection of interests of English manufacturers and distributors of potable water for kulernyh installations. National associations of manufacturers of water for coolers are formed also in Spain, the Netherlands and Italy.
the Prototype modern kulernoj installations has appeared in the USA in the beginning 1900 - h years and has received the name “ a drinking fountain “. It has been invented by American Helsi Taylor after personal tragedy: his father has died from a typhus, having drunk dirty water. Serial release of installations with pure potable water was adjusted by compatriot Helsi Taylor Luther Hous, the health inspector from Berkeley. In 1909 it has formed Haws Sanitary Drinking Faucet Company which in 1911 - m has taken out the patent for manufacture “ drinking fountains “.
In 1950 - h years of installation with pure potable water were issued already with cooling systems, and next three decades, having undergone a number of changes in the plan of design and becoming more compact, coolers have started to win to themselves space at offices of large American corporations. Their fast distribution which peak has had on the end 1990 - h years, in many respects was promoted also by a fashion on the use of non-polluting foodstuff. So, according to magazine Consumer Reports, in 1980 - m the average citizen of the USA for a year drank only 6 litres of the cleared potable water, and in 2001 - m - already 60 - 70 litres.
not less prompt rates the market on manufacture kulernyh installations and in Europe developed. According to researches of consulting company Zenith International, only over the last 10 years its annual gain on the average made about 30 %. In 1993 on the basis of branch American International Bottled Water Association has been created European Bottled Watercooler Association (EBWA), incurred functions of the body supervising and co-ordinating activity of national manufacturers of water for kulernyh of installations.
the British holding in the lead positions in the market throughout last five years concern number of the largest. To it in many respects promoted Bottled Water Cooler Association (BWCA), formed in 1989 for protection of interests of English manufacturers and distributors of potable water for kulernyh installations. National associations of manufacturers of water for coolers are formed also in Spain, the Netherlands and Italy.
But conditions when initially it is a lot of clients and serious investments in the equipment for water preparation and flood quickly pay off, available only in capital. In other Russian cities the company which has enclosed means in manufacture of the water, should be guided at once by retail and only then can try to begin business on delivery. For example, firm “ the Divine source “ 10 years letting out rather known water in the Nizhniy Novgorod region “ Sarov “ only in August of this year was engaged in its delivery in 19 - litre container and has started kulernuju the program.
the Director for development of the Lipetsk company “ the Pure spring “ started to develop business on delivery of water half a year back, Alexander Chunosov says that on absolutely young, a maximum two years old, the market of Lipetsk to be put in the equipment on water preparation and water flood while is unprofitable. At present quantity of clients of an investment in the equipment will pay off very much not soon, therefore all Lipetsk participants of the market of delivery use imported water. At the same time only that company which will get own system of preparation of water and a flood line, has the future. Alexander Chunosov: “ the First who will adjust water flood in Lipetsk, will grasp all market. The main thing - not to miss the moment “.
If to create the company which will be engaged exclusively in water delivery, the sum of investments can make from $10 thousand To approximately $100 thousand depending on number of potential clients.
these minimum $10 thousand include actually business opening: a floating of a company, office rent, acquisition of computers and communication facilities. It is possible to save considerably, if delivery - any more the first business of the company. For example, owners of small Moscow firm on water delivery “ Geliotorg “ worked in the computer market earlier. Owners Lipetsk “ the Pure spring “ have also business on furniture sale. So, expenses on office, office equipment, communication and, for example, can be divided the bookkeeper between different biznesami.
expenses on container - 19 - litre large bottles, de - fakto being the world standard on delivery waters will be the Second point of expenses. In the Russian market the company “ the Sacred source “ tried to advance 11 - litre large bottles, proving it that women can establish them even. However the innovation has not got accustomed.
Make these large bottles of polycarbonate. Now practically all requirement of the market is satisfied with two factories: concern “ Water of life “ company Van Leer - in Vologda makes large bottles in Moscow suburbs. Attempts to make PET - large bottles are undertaken. They are cheaper, but a wide circulation yet have not received: more low durability, and water is stored in them not for long (for bottles from polycarbonate too there is a restriction - 6 months). Empty large bottles are brought for repeated flood of water. It is possible to use them 30 - 40 times, but not indefinitely - 10 % of large bottles should be changed every year, buying the new.
Large bottles can be got, and it is possible to lease at the company spilling water, having paid mortgaging cost. For example, the company “ the Pure spring “ has bought at once 300 large bottles this summer. The most widespread large bottle (from polycarbonate) costs 150 - 180 roubles. The general expenses on container in this case will make about $2000. If the company - the supplier gives large bottles in rent, it manages approximately twice more cheaply - as a deposit it is necessary to leave about $1000.
water - a product which you deliver to the client goes the Third point in the column of expenses actually. Council for choice the manufacturer of potable water to give difficultly: in Russia it is made together with mineral water of 500 names. It is necessary to be guided by the price and reputation of mark in the local market. Wholesale cost of potable water - from $3 to $6 for a standard large bottle.
to Each client the company on delivery, as a rule, establishes a cooler. _ & _ (there are also other, less widespread devices for use of large bottles with water - it will be a question of them more low.) The device of the overwhelming majority of coolers the same, and in them it is possible to establish large bottles of different manufacturers.
Coolers need to be bought proceeding from number of potential clients. All depends on expected rates of development of your business. For example, Alexander Chunosov says that at its company appeared on 10 clients in a month. Total the minimum sum of expenses on coolers - $1500. One such device costs today about $150 though it is possible to find and for $100. However, in the near future the bottom price lath will start to fall, as many companies have plans on assemblage of coolers in Russia. The client can sell or lease the device. In Moscow on realisation of coolers of the company on delivery sometimes earn quite good money. Alexander Chunosov tells that one company in Moscow successfully sells that model of a cooler which at them costs about the $280, for $500. In its Lipetsk for such money nobody will buy.
the Coolers given by the companies on delivery of water, have the Korean or Chinese origin more often. In the company “ Pure water “ assert that the European equipment is more reliable. Sergey Tratsevsky: “ some our clients have till now the Irish coolers Oazis established almost 10 years ago “. But the majority of the companies all - taki are satisfied with the Asian degree of quality.
Thanks to simplicity of a design coolers are reliable enough irrespective of where they are made. The chief executive of the company “ Geliotorg “ Michael Brusser: “ there is nothing to Break there, it is the refrigerator and an electric kettle “ in one bottle “. And all - taki it is necessary to be engaged in service of coolers. In - the first, plastic details sometimes nevertheless fail. In - the second, coolers periodically demand sanobrabotki, otherwise quality of water can sharply worsen. Sergey Tratsevsky: “ Sanobrabotku we spend without fail with periodicity of times in four months “.
Two years ago the company “ Pure water “ has decided to try to establish coolers with possibility of preparation of sparkling water. According to the mister Tratsevsky, the innovation has appeared successful: aerated water enjoyed wide popularity. Exact figures in the company do not name, but presumably 20 - 30 % of consumers prefer aerated water. More recently with gazirovaniem the company " has started to establish coolers; Royal water “.
there are the devices named pompami and dispensers much more cheaply. The pomp is put on a large bottle from above, and water is extorted from it under pressure, and in a dispenser the large bottle turns over, and water flows samotekom. Despite cheapness, these devices are not so popular. More often they take clients who never used potable water earlier, - to try. Sergey Tratsevsky asserts that in capital of a pomp and dispensers already practically are not in demand.
Shershe lja office
As was already mentioned, major customers of the companies on water delivery are legal bodies - their share, as a rule, exceeds 80 - 85 %. Sergey Tratsevsky says that it is very difficult to predict, what company will become interested in service and what is not present. Water can order and absolutely tiny firm with ten employees. “ all depends on the head “ - the mister Tratsevsky adds.
the companies already have the approximate calculations, how many what client will consume waters. In “ to Pure water “ 0,5 litres on the person in day, in " start with; the Pure spring “ roughly estimate the water expense as half-large bottles on the person in a month. Taking into account quantity of the working days this data practically coincides. Private clients usually consume more. Michael Brusser: “ Quite often a cooler buy, when in a family there is a child. Naturally, in this case the water expense above. Besides in families on potable water often cook food, sometimes even wash “.
If water is chosen correctly remarks on its quality (to taste, a smell, colour) arise seldom. More often clients make a complaint to quality of service and delivery. In it foreigners are especially choosy. Michael Brusser: “ We worked with Americans, but to correspond to their inquiries very difficult. For example, they can ask to bring water in 6 o`clock in the morning and to any objections will not listen - at them in the homeland it at this time water brought “.
the delivery Organization, perhaps, most difficult stage in servicing. The small companies as shows experiment, use hired drivers. Michael Brusser: “ We tried to hold own park, but was found out that under the relation the price - quality hired drivers is better. We pay in it about $6 for a trip, and leaves about $500 a month. Selected them very long, they at us constantly changed. But now we have some reliable children - partners “. “ we had the ` the Gazelle `, - Alexander Chunosov remembers. - It continually broke. Have now sold to its driver, and these problems any more do not excite us “.
the large companies have a park of cars. At “ At its finest “ on 25 thousand clients approximately 100 cars, that is one serves about 250 clients. To the small companies of such indicator to reach very difficultly: the scale effect operates. For example, “ the Water world “ from Petersburg, having 1200 clients, contains own two minibuses and employs five more cars, that is each car serves about 170 clients. Approximately also it is necessary to be guided by these figures to the beginning companies.
the companies on potable water delivery basically through the Internet and radio Are advertised. Michael Brusser: “ 95 % of clients to us are brought by advertising on the Internet and 5 % - “ agency OBS “ “ one grandmother has told “. Attempt to place advertising in magazines has not given any result “. “ Divine source “ too it is limited to advertising on the Internet. Ilona Sergeeva tells that the considerable part of orders is necessary on old clients. For example, the Nizhniy Novgorod regional government, the Duma and representation of the president have joined to kulernoj to the program - earlier they were constant consumers bottle “ Sarovy “. Alexander Chunosov says that “ the Pure spring “ placed advertising on two city radio stations, but has worked only on that where listeners were middle age. Advertising on youth audience has shot empty.
Mister Chunosov adds that, though “ the Pure spring “ sells in Lipetsk “ Royal water “ they advertise own brand. “ royal water “ Advertising support to the regional partners does not render, therefore in advertising of this capital brand (such way one Lipetsk company has gone) Alexander Chunosov considers an investment of means as an error. The in itself capital mark in the regional market has no value, its local residents simply do not know. Besides, if the company opens own manufacture - and it is a strategic target, - all publicity expenses of another`s trade mark will appear vain.