Source: www.koreaherald.co.kr
Min Ji-ah, 29, often gets teased by her boyfriend that she is obsessed with water. Not just any water, but the minerals and the sparkle contained in attractive and fashionable bottles. Admittedly, her infatuation is somewhat influenced by pictures of stylish Hollywood stars walking about in Paparazzi pictures, holding water bottles as effective accessories.
Min is one of the increasing number of Koreans that have grown keen to so-called premium water - some of which costs as much as 15,000 won per 750 ml bottle.
“One of the reasons for the rise in premium water consumption is the deterioration of the environment,” said Ryu Jin-whan, an avid water collector who runs a website selling more than 100 types of different water brands.
“While most consumers have been fully aware of the importance of water, it had been taken for granted in Korea as people thought it was common and plentiful,” he said.
Indeed, over the past several years, more people appear willing to pay high costs to drink “good” water.
The market for spring water has grown by 10 percent in recent years, with the size reaching some 390 billion won last year. Nearly 5 percent of that is taken up by imported brands.
Lee Jong-un, 33, remembers drinking on a daily basis barley tea made by his mother, who boiled tap water with barley seeds. Or he would occasionally drink spring water that his grandfather brought down from his weekend morning hiking on a mountain nearby.
“Now we mostly buy those mineral waters made by Korean brands at supermarkets,” said Lee, who is now married with a baby girl.
He said that his drinking bottled mineral water is partially about being more health-conscious, but also because it’s more convenient.
For the past 30 years, Korea’s annual precipitation was 1,245 millimeters, which is 1.4 times higher than the world average. But with a lack of efficient maintenance and high population density, Korea has been listed among the countries with a water deficiency. It is said that the country will be short of about 2 billion tons of water annually by 2011.
With these factors combined, along with the urge to eat and drink better, the trend for high-end water indeed seems to be prevailing as one of the expanding marketing trend.
As is well-known, 70 percent of a human body is comprised of water, and a daily intake of two liters is considered ideal.
There is no scientific definition of what makes water good, but it is said that chemically clean, mineral abundant, weak alkali (of 7.5 pH) and high dissolved oxygen waters are recommendable.
“Until the 20th century, people could be supplied with enough minerals through intakes of various kinds of food, but the rampant use of fertilizers, insecticides and herbicides that damaged the soil subsequently reduced the ingestion of minerals,” explained Jeon Chang-yong, CEO of the TH Group that makes premium water, including its flagship brand Siana Water.
Since the revision of the law concerning drinking water in 1995 that allowed sales of water, Korea’s market for natural mineral water has grown by 10 percent annually. There are nearly 70 different local water brands including Panablu’s “Sure,” Lottechilsung’s “Bluemarine,” and Watervis’ deep sea water. All aspire to give the “best” water possible, not to mention attractive packaging to grab consumers’ attention.
TH Group has also developed its own brand “design Siana water” - pH9.8 alkali water that contains necessary minerals and the company’s own invention of a substance (combination of potassium chloride, magnesium and potassium carbonate), which the company explains prevents germ multiplication even after the bottle is opened.
Siana Water has also passed the safety review of the U.S. Food and Drug Administration and is currently sold at Sam’s Mart across the United States as well.
But as is the case with most growing industries, the expansion of the premium water market has induced problems.
In June this year, the National Institute of Environmental Research found 8.9 percent of the 79 water brands to contain bromate above the World Health Organization’s standard amount 0.01 mg/L. Bromate is considered to be carcinogen, and undesirable when found in drinking water.
Packaging has also became a source of concern, following a local TV network’s claim that poorly-made caps of some of the mineral water brands pose contamination risks.
“Excessive competition for premium water also tends to aggravate water deficiency in some of the areas as they compete to produce more and more,” Ryu Jin-whan said.
Korean companies should also aim higher and pursue higher-value-added projects that combine overall water supply and a drainage system, according to water experts.
“It is time that each company think about how not to damage the environment while obtaining water,” he said.
Regardless, the rising demands are making more businesses come up with premium water marketing strategies.
Shinsegae Department Store opened a “Water Bar” at its Centum City branch in Busan, South Gyeongsang Province, in March this year.
The bar, complete with “water sommeliers” and 100 different types of premium water types, is now visited by about 130 customers a day.
The second Water Bar opened at Shinsegae’s Gangnam branch in August, and the third one is set to open at Yeongdeungpo.
“Just this year (from Jan. 1-Aug. 9), sales of natural water surged by 67 percent from the same time period last year, with the imported brands showing exceptional surge of 85 percent,” said Kim Sang-min of Shinsegae’s PR team.
Kim explained that the most popular ones are FIJI Water, Evian, Perrier and WHISTLER. Local brands made with deep sea water are also gaining popularity. They have been so successful, the department store giant has now introduced top-notch ones as well, including Staatl Fachingen of Germany, which costs 15,000 won per 750 ml bottle, and VOSS, a mineral sparkling water of Norway reportedly loved by the great author Goethe costing 5,500 won per 375 ml bottle.
Hotels are also joining in on the move, providing wider purchase opportunities.
“We urge customers to purchase premium water by setting them on tables instead of wine,” said Yoon Sung-nam, food and beverage assistant director of Grand InterContinental Seoul. Grill restaurant C Grill has on the tables VOSS, while Italian restaurant Cafe Espresso has in sotre San Pellegrino.
“While the response from the local customers is still limited, the (demand) is surging. As for foreign nationals, it has always been a common service to recommend one or offer a water of choice,” Yoon said. The numbers are still slight, but the demand for premium water has surged by 30 percent, he said.
Sheraton Grande Walkerhill’s restaurants have also begun an enthusiastic promotion of water since August, by lowering the price and expanding the selection. Their water menu includes Soonsoo, Sure, Evian, Siana, Perrier, Oxygizer, VOSS and Glaceau Vitamin Water.
Premium water can also be reached online, such as through www.watercafe.co.kr, Ryu Jin-whan’s website.
It offers detailed information on anything that has to do with water, along with a shopping mall of more than 100 different brands.
“All in all, the most important thing is to drink the water that best suits you, and to maintain the habit of drinking it as often as possible,” Ryu said.
