Coway solves water stress of Europe while making inroads into the market (Sep. 18, 2006)



Changing trend of Europe`s "water market" Zenith International Director Gary

The drinking water market of Europe that has been mostly dominated by Evian begins to show some signs of changes. 2006 Zenith International Report said Europe`s POU (Point of Use) market grew 31.1% in 2005 and estimated annual growth rate for five years to come at 20% to reach to 146% by 2010.

The POU market of West Europe, which was estimated at 200~300 billion Won (about 500,000 units) in 2005, appears insignificant compared to the bottled water market that is estimated at 10 trillion Won (Source: Just-drinks.com, beverage industry analyzing company). The market, however, looks promising when considered the factor that the bottled water market has reached to saturation.

In the situation, Coway makes an MOU with Zepter, the largest multilevel marketing company in Europe after Amway, for the supply of water filtration systems on Sep. 29. According to the MOU, Coway will supply Zepter with 50,000 units of POU worth about 8 million euros (equivalent to 10 billion Won) at export supply price. As the export supply price is an initial order of a marketing concept, actual trading price for additional orders may exceed five to six times the price.

Strengths of POU (Source: Zenith International Report)

1) Easy to use
2) Inexpensive compared to bottled water (Bottled water : about ₤15/month)
3) Excellent performance that is continually improved
4) Uneasiness over possibly unsanitary bottles (Already disputed in Europe)
5) Free from anxiety over environmental pollution arising from plastic bottles (Already disputed in Europe)
6) Free from troubles of ordering, keeping and delivering of water bottles
7) No expiration
8) Long life span (Up to 10 years)
9) Easy to maintain (Twice a year)
10) Option for diverse types of water (Cold water, purified water, hot water, carbonated water, acid water)

Strategy toward European POU Market

1) Development and supply of products that meet needs of consumers to attract home users
2) Legally forced installation of POU at public places, schools and offices to ensure sanitation through the use of POU.
3) Providing users with the option to choose filters
4) Development of exceptional service
5) Development of mixed usage



<Back