Hui Ka Yan's Mineral Water Dilemma: The Strategic Cost of Track Selection

Back when Hui Ka Yan entered the Hengda Bingspring market, he faced a fundamental business choice—entering the fast-moving consumer goods (FMCG) sector. From a probabilistic perspective, choosing products like instant noodles, beverages, or beer would have a much higher chance of building a national brand, and even ordinary purified water is easier to break out than mineral water. However, Hui Ka Yan ultimately chose the most challenging track—mineral water—which later led to an unexpected dilemma.

Hengda Bingspring experienced a brief period of glory in its early days, but hidden problems were deadly and difficult to resolve. First, high-end mineral water sources are scarce, and capacity building takes a long time, resulting in severe supply shortages during periods of strong market demand, causing the brand’s reputation to quickly shift from hot-selling to cold. Second, the high costs of premium water sources from Changbai Mountain led to increased retail prices, which severely limited consumer acceptance. Additionally, the unprecedented advertising investments in the early stages resulted in a long return cycle, and financial pressure grew heavier.

This case profoundly reveals a business truth: the choice of track often determines a company's ceiling. If Hui Ka Yan had chosen the relatively lower-threshold, supply chain-optimized FMCG track, Hengda’s consumer goods strategy might have had a completely different outcome. It also reminds us that even the strongest companies cannot reverse a wrong track choice.