Water is life. We are after all, 70% made up of water.
However, the price tags on Evian bottled water appears daunting and most of us would have at one point in our life question why these bottled water are so expensive. The same amount of money would have made more economical sense if we have spent it on a meal, while we take a drink from a trustable tap.
Expensive bottled water is an extremely profitable business worldwide. In this article, let us analyse where some of the pennies you paid for the bottle of water went to.
1. Brand recognition worldwide
Singaporeans are fortunate enough to be living in one of 6 countries in the continent of Asia where water from our tap is safe for human consumption. Despite water covering 71% of the Earth’s surface, only 37 countries around the globe have safe, drinkable water. To add to our woes, drinkable water to the locals do not necessarily means the same for tourists due to differences in our immunity system.
Under such circumstances, travellers will naturally head for a trustable brand of bottled water while abroad. That’s where brand such as Evian stands out. You might not agree with the high price of Evian water, but you can’t deny that you trust the brand.
This assurance of quality drinkable water would not be possible without heavy marketing of the product. Advertisement, sponsorships and events revolving around the brand do not come cheap. These high marketing costs will translate to higher sales price.
2. Distribution cost
The last time we tried to order a sinful meal of Double McSpicy Meal from McDelivery, we came across bottled Dasani as a healthier choice for our soft drinks. If you are having your McDonalds Meal in France, you will see Evian.
Heavy marketing has to come hand in hand with a good distribution network to be effective.
To ship Evian bottled water from its original source, the Rhône–Alpes region in south-eastern France, to the rest of the world is not cheap. This adds to the price of each bottle of Evian.
3. Expensive water contained in expensive bottles
Evian uses polyethylene terephthalate (PET) bottles, which is the most recyclable bottle worldwide. The process of production for such material is complicated. Numerous tests are required for such bottles and that leads to an increase in production cost.
Evian is known for their Limited Edition bottle. High fashion designer Diane von Fürstenberg produced the Limited Edition bottle for 2013. Elie Saab produced the Limited Edition bottle for 2014.
All the above counts in as part of the production cost of the bottled water.
SingSaver - Battle Of The Cards. Apply for your favourite miles, cashback and rewards card today!
From now till 9 June, you can participate in SingSaver’s Battle of Cards campaign. To participate, all you need to do is to apply (via SingSaver) for any of these credit cards during this period (you can apply for more than one).
Battle Of Cards (Best Cashback Cards)
Citi Cash Back Visa Card: $200 NTUC, Taka or Grab codes (new customers only) or $30 vouchers (existing customers)
Standard Chartered Unlimited: $100 cash plus up to $120 cashback from bank (new customers only) or $50 cash plus up to $40 cashback from bank (existing customers)
HSBC Advance Credit Card: Choice of $150 cash back or Samsonite T5 Spinner worth $560 (T&Cs apply) (new customers only) or $30 cash back (T&Cs apply)
American Express True Cashback Card: $140 Vouchers (T&Cs apply) or $30 Vouchers (T&Cs apply)