FACTOR ANALYSIS AND GROWTH PROSPECTS OF POTABLE WATER LOCAL MARKET

Currently, the clean potable water is globally the restricted economic benefit. In highly urbanized and environmentally unfavorable regions, including the Kemerovo region, development of food plants to fill drinking water is the most promising way to solve the problem of potable water availability. Factors and conditions of the drinking water market formation are studied by integral evaluation of drinking water availability in all municipal districts of the region, using the criteria of availability in terms of geographic location, management, technological process, economic value and quality. The volume of supply of bottled drinking water is also analyzed in view of its availability. As a result, the data on the level of availability of drinking water is first obtained for residents of all municipal districts of the Kemerovo region, on the potential of the population to pay for the pure water delivery and on prospects to expand the bottled water production market. The most population was identified to live in conditions with low technological, economic and environmental access to drinking water. The residents of big and mediumsized cities live in conditions of low environmental availability and high potential to pay for the drinking water delivery. The residents of peripheral municipalities live in conditions with low access to potable water due to management, technology and economic restriction but within the high geographic availability. Thus, the analysis of the drinking water availability and volume of its production suggest the possibility of the local market considerable capacity and its growth in future.

The data supplied was reviewed to prove the effectiveness of the administrative policy to improve the quality and availability of drinking water.
As the economic wealth and the functional food product, water is complicated to exclude from everyday life and its competitive nature of its use is known, so the water should not be in private ownership. This means that the access to water cannot be limited. However, the water consumers are quite competetive. Not authorized consumers are willing to pay for the access to this wealth, thus creating the industry demand. Therefore, the concept that the water is a market commodity has been practiced for the last decade. Bottled water production has been acknowledged as one of the most reliable and fastest ways to meet the population needs in drinking water. Delivery of bottled water home or work places (Home & Office Delivery) has become one of self-sustained and actively developing segment of the services market. Private multinational companies in the field of botlled drinking water sale entered the market, like Perier, Evian, BonAqua (Coca-Cola Company), Aqua Minerale (Pepsi Bottling Group), etc. As a consequence, the entire economic sector emerged to produce the relevant equipment (filters, coolers, bottling lines and packaging of water, etc.).
The Russian market of bottled water is one of the extended and progressing one. In Europe, the bottled water consumption is 110 to 150 liters per year, while in Russia it is 30-40 liters. In view of that, the potential to increase the capacity of this market is quite high. Use of coolers in offices and the public urge to healthy lifestyle contribute to the above. The current situation resulted in that the purchase of mineral and drinking water for many Russians has turned to be a daily item of expenditure. The market of drinking water is represented by both national and international manufacturers. The regional product, although offered in the low price segment, significantly competes for the recent years with imported goods. However, local producers highly compete between each other whereas the average price segment goods are produced by larger market players. The share of imported products remains stable at 10-12% and is mainly represented by premium class goods. 1 Currently, plants in Russia tend to extend and upgrade by buying-up small regional plants by larger ones. The production concentrated region by region is reported. North Caucasus, Southern, Far Eastern and Siberian federal districts produce a total of about 75% of waster in Russia. Every year, more than 11 000 million liters of bottled mineral and drinking water is produced in Russia with the increase of up to 16-20% per year. In view of such prospects, the Russian market may become one of the most intensive markets in the world [5]. The global nature of the issue to supply pure water to population involves the development of local mechanisms to address the problem. In this view, this study seeks to analyze and assess the market prospects of drinking 1 Investigation of the Russian market of drinking and mineral waters. Group of Companies Step by Stephttp://www.step-by-step.ru/example11/swsw.pdf. water in the industrial region in terms of drinking water access as per geographic, organizational, technological, economic and qualitative criteria, as well as the willingness by the population to pay for the quality improvement and level of availability through creating the local plant market and water delivery services.

OBJECTS AND METHODS OF STUDY
The local market of bottled drinking water is determined as the object of study in the Kemerovo region, the old industrial area with the high anthropogenic load on water bodies and relatively low population income. To clarify the term "study object", the definition of the bottled water should be explained. The water is considered bottled if it meets state standards, hygienic requirements to drinking water, is packed in the hygienic tare and is sold for human consumption. However, it should not contain artificial sweeteners or additives; flavors, essences and extracts of natural origin may be added to the bottled water in the amount not exceeding one weight percent. In case of using a greater percentage of additives, the water is considered as the soft drink. This is how the International Bottled Water Association (IBWA) defines the bottled water. The bottled water is classified for water for personal and household use, and it falls into three categories, either, as follow: ineral, artificial and potable. This study focuses on the bottled drinking water that is classified for two groups: first category drinking water (table water) and high category drinking water.
The market of the Kemerovo region mostly offers the natural water of the first category. As per WHO international standard requirements, the natural water should be bottled in containers directly from the well. in this case the bottles should be labeled with "Water from the artesian well" mark. The water category should be also considered. Drinking water of the first category may be developed from any source, but the drinking water of the highest category, which is in scarce at our market, may be only the artesian or spring water that complies with specified requirements. Water of both categories is safe to drink. They only differ in that the first category water should have the maximum permissible concentration of trace elements, whereas the requirements to the highest category water are strictthe standard defines the best concentration of substances in it. This is not of great significance for the consumer. This is rather the matter of prestige for the manufacturer and the so-called corporate competition. The highest category water should contain the certain amount of iodine and fluorine.
The Kemerovo region is known for the high urbanization which is 90% with the dense population and intense industries. As a result, more than 70% of the population was in the "high risk zone" associated with low access to drinking water due to the high level of technogenesis in water catchment areas of water bodies with the most population communities along them. When monitoring the drinking water market, it is important to consider specifics of human distribution on the territory of the region. As per the population pooling, three groups of areas may be emphasized: -Areas with dense population primarily engaged in industrial production (Kemerovovskiy, Prokopyevskiy, Leninsk-Kuznetskiy, Belovskiy, Novokuznetskiy, Yurginskiy regions); -Areas with the average density of population that tends to industrial production employment (Yayskiy, Guryevskiy, Mezhdurechenskiy, Mariinskiy, Promyshlenniy, Yashkinskiy, Topkinskiy regions); -Areas with low population density, tending to agricultural production (Chebulinskiy, Izhmorskiy, Krapivinskiy, Tisulskiy, Tyazhinskiy regions).
As per the data by the Federal Public Service for Supervision of Consumer Rights Protection and Human Welfare for the Kemerovo region, the share of population supplied with safe drinking water in urban districts was 87.2% in 2014 (81.4% in 2013), in rural areas -28.7% in 2014. In general, the water quality as per the water pollution index for the Kemerovo region is as follows: -Tom' River Basin -"contaminated-dirty"; -Inya River Basin -"dirty"; -Chulym River Basin -"highly contaminated"; -Chumysh River Basin -"dirty".
Another equally important factor driving this market development is the high level of morbidity due to the use of poor-quality drinking water. The population of urban and rural areas of all ages suffer from kidney diseases. [6] Earlier, the macro-economic assessment studies revealed significant economics losses due to the environment-induced morbidity in the Kemerovo region. Such losses amount to 7% to 10% of the Gross Regional Product cost. For regions similar to the Kemerovo region, the drinking water quality is one of life quality and sustainable development evidence [7,8]. The state of water resources and high morbidity due to poor water quality determine the demand for clean drinking water.
In this view, it is also important to assess the state of water infrastructure that directly affects the quality of water and ---Low population incomes and willingness to pay for the higher quality water were factors of equal significance that alternatively restricted the market of drinking water development in the Kemerovo region. It should be emphasized that the wage remains the main source of income for the majority of working population of the Kemerovo region. The wage share in the income of Kuzbass population is 43%, and among the Siberian Federal District (SFD) subjects, the region ranks the 6th when evaluated by the index above. The average monthly salary of the employed in the region is only 86% against the national rate and 98% as compared with the average rate for SFD. Despite the fact that the cash revenue of the Kemerovo region population, both nominal and actual, increase over the years, the region is ranked the 71 st in the Russian Federation in terms of the minimum living wage (see Table 2) [9].
The data obtained during the study of the population commitment to pay for the higher quality drinking water throughout the Kemerovo region and in European countries was analyzed to conclude that the regional public is available to bear expenses of the family budget at the same level, or even higher than that in the developed countries. It should be clarified that the drinking water market in these states is far maturer than that in Russia. However, we face the intentions of the Kemerovo region people to bear expenses above for the drinking water while the European population pays for the water quality improvement in view of the fact that the quality of tap water in those countries is much higher than that in Russian regions.
As per authors, all these factors and criteria are extremely important to take into account when assessing the potential formation of the drinking water market and primarily, in terms of territorial coverage. When analyzing the market trend developments, the demand for particular product should be identified in terms of geographic point and the volume along with the population availability and potential to purchase it. This opinion is shared by other authors who study the drinking water market both in Russia, on whole, and in certain regions. They also conclude that the demand is formed in view of low availability of drinking water because of water source contamination and unfavorable condition of water supply networks, especially in old industrial regions of the Urals and Siberia. Also, most authors state that these regions tend to purchase the low-cost bottled water by local manufacturers which is more accessible as compared with the expensive water by international brands [13,14].

RESULTS AND DISCUSSION
To evaluate the bottled water market in the Kemerovo region, materials provided by manufacturers, companies that specialize only on water delivery and retail networks have been analyzed. Specialists of the "Chistaya voda" LLC, the largest regional company to produce the bottled drinking water were invited as experts. Currently, 9 companies run throughout the Kemerovo region for production and delivery of bottled drinking water in bottles of 0.5, 1.5, 5.0, 10.0 and 18.9 L in volume ( Table 4). Most of them are on the market for at least 5 years, except for "Chistaya voda", "Noringi" and "Talinka". In addition, often they do not own their plants but resell other manufacturers' products. First listed three companies own large productions at the Kemerovo region territory. They are perspective to increase sales since they run for the less capacity. The annual sales growth makes 10% on average. For example, the equipment capacity owned by the "Chistaya voda" LLC is 1200 bottles per hour. Currently, they have more than 30 thousand customers since they are for over 15 years on the market. "Chistaya voda" LLC is the only company in the region that bottles the natural water taken from deepwater wells upon four-stage purification. Drinking Artesian water packaged in bottles and labeled with the "Berdovskaya tayozhnaya" trademark ("Chistaya voda" LLC) is also the only product in the Kemerovo region that suxxessfully validated by the ecological expertise committee and certified as the product of the highest ecological purity. The management system of the "Chistaya voda" LLC is certified in compliance with requirements of GOST R ISO 90001:2008 and the Food Industry Standard HASP 2 . In addition, other companies proved to be reliable suppliers of carefully purified drinking water. All companies that are engaged in water production and delivery possess their own regional client base, though 60-70% customers reside in larger cities like Kemerovo, Novokuznetsk and Prokopyevsk. The competitive environment of bottled water manufacturers is significantly mixed with numerous suppliers of drinking water from retail chains who sell it in small bottles of 0.5 to 2.0 L and hold their steady niche in the market space. In our opinion, all these companies and retail chains are prospective to increase sales in bottled water, since more than 70% of water consumers in the Kemerovo region are their potential clients today.
To assess the geographic discrimination in drinking water availability for the population and the growth prospects of the bottled water regional market, the area groups have been used in our study by the variety of accessibility as offered by A.V. Antonova. In particular, all municipal districts of the Kemerovo region were grouped and ranked as per geography, quality, management and technology and economic accessibility (Table 5) [15]. Arithmetic mean of the scoring results was used to assess the status of regional territories in terms of criteria and the minimum of these values.
The study showed that 1110.7 thousand persons live in areas with "too low" total availability of drinking water (40.5% of the Kemerovo region population), and 1300.7 thousand persons live in areas with "low" accessibility (47.4% of the Kemerovo region population). It should be noted that these two groups include all towns in the Kemerovo region, where the enormous human-made anthropogenic load is imposed on water bodies. The highest rate of morbidity is reported in Novokuznetsk, Kemerovo, Prokopyevsk, Belovo, and other towns due to poorquality water. Currently, bottled water sales by all manufacturers are concentrated in these areas. However, it should be noted that peripheral rural areas, namely Tisulskiy, Yaiskiy, Izhmorskiy and other areas, are assigned to this group though due to the scarce water supply networks or due to absolute absence of the latter. The sellers of bottled water in these areas are not so much active since the price for water will be higher than that in larger cities due to the small market sizepoorly populated areas and high transport costs. Unlike other Russian regions, there are no areas in the Kemerovo region where water is supplied as per the schedule or just imported.
More than 300 thousand people (12% of the total population) reside in areas with the medium to high levels of water availability. These are area with the high level of geographical and quality accessibility. The human-made impact on water bodies is far less in here as well as the free access to a greater volume of pure natural water. Currently, the bottled water sale is these areas, as well as in rural areas of previous groups, is less and they represent a potential market for sellers. Thus, by the results of analysis it was found that 88% of the Kemerovo region population live in conditions of "too low" and "low" accessibility to drinking water and it proved that the potential capacity of the local bottled water market in the Kemerovo region is hypothetically quite great totaling more than 1500 thousand people.
However, the demand for drinking water by the territorial difference will be insufficiently described, unless it is complemented with the comparative evaluation of ranking resultants for economic accessibility indicators of drinking water for people residing in different areas of the Kemerovo region. Analysis of the regional statistics results and assessment of the population commitment to pay for the higher water quality allowed classification of all districts for four groups: -A group with "too low" level of economic accessibility, that is, Izhmorskiy, Krapivinskiy, Tyazhinskiy, Chebulinskiy districts; -A group with "low" level of economic accessibility, that is, Guryevskiy, Mariinskiy, Promyshlennovskiy, Tisulskiy, Yaiskiy, Yashkinskiy districts; -A group with "medium" level of economic accessibility, that is, Leninsk-Kuznetskiy, Tashtagolskiy, Topkinskiy districts; -A group with "high" level of economic accessibility, that is, Kemerovskiy, Mezhdurechenskiy, Novokuznetskiy, Prokopyevskiy districts.
The resultants are of significance for suppliers of bottled drinking water and commercial networks, since they give a good indication on the spatial perspectives of market development. It should be noted that the expansion of bottled water sales in areas with "low" and "too low" economic accessibility will be significantly slow-paced than that in larger cities with "high" level of accessibility. For long years, the low population income will limit the market expansion towards poorly populated rural areas. In this case it is important to realize that understanding of the term "drinking water accessibility" and the understanding of other economic benefit accessibility is different from area to area with the varied socio-economic background. This is again to prove that there are no universal methods to create the bottled drinking water market to be used in each and every district and region. In this given case, is necessary to understand that the rarity of drinking water is the permanent imbalance of supply and demand due to contamination of drinking water sources or over-intensive exploitation thereof. The drinking water scarcity relates to the water distribution mechanism. Rarity, as compared with the scarcity, indicates on imbalance of demand and possibilities of the population, opportunities. The most difficult is to provide free access to this wealth. However, the best development practices of the society of today shows that the effective mechanism to regulate the access to water is infeasible without the pulic active intervention. Each party, whether business or community shall have significant advantages in case of free access to the welfare and influence, whether directly or indirectly the other party. The society may fail when confining the business within the strict limits. As per the authors, further on, the bottled water manufacturers and their customers will achieve the agreement by improving the life quality and adjusting the extent of socio-economic development in the Russian regions, as a whole.

CONCLUSIONS
Formation of global and local markets of drinking water requires the analysis and assessment of the demand volume for this product essential for human functionality and also the causes and factors decisive for the demand formation. Most activities in the drinking water market relate to the performance and production volumes, formation of delivery services, product branding and promotion, indeed. Activities to assess accessibility ratio of drinking water are in short and, in our opinion, it adds a greater complexity to the assessment of prospects for the drinking water market development.
The current situation known for rapid changes in scientific, technical, financial, economic and social industries contributes to support the tendency to convergent administrative, economic and market mechanisms of drinking water accessibility. Currently, the Russian policy of the drinking water accessibility is the aggregate of administrative and economic tools where market-based tools are rarely applied due to nonenforceability. The mechanism in place ensures current needs in water resources for economic industries and the population. However, the prospects for the national economics development require the volume of water resources of the proper quality guaranteed to meet drinking and household needs, as well as to be used for industrial, agricultural, energy and recreational purposes. Thus, it is required to develop the efficient combination of applicable tools to improve the current mechanism of drinking water accessibility in view of regional peculiarities (geographic, organizational and technological, qualitative and economic availability of the drinking water in the region).
The market of drinking water is created in oldindustry regions at the background of low economic, qualitative (environmental) and technologically managed accessibility. Drinking water manufacturers and sellers are most concerned in areas of high population density and high economic availability; the availability of population to pay for the drinking water quality also makes sense. In other regions with low economic, organizational and technologically managed accessibility the governmental involvement is required along with integration of various types of publicprivate partnerships to encourage investors and increase the public access to drinking water. The governmental procurement for drinking water, among these tools, is beneficial for public and bottled water manufacturers, in conditions of low geographic, technologically managed accessibility, since the construction of new water facilities and infrastructure is not economically feasible due to the scarcity of consumers in these regions. This is also due to the fact that the government, for example, is held liable for the environmental safety, including the safety of water sources.
The market of bottled water in the Kemerovo region may be considered as one of the most potentially intensive markets among Siberian regions because of the total low availability of drinking water. Almost all the regional residents are the potential consumers of bottled water. Improvement of the life quality and increase in the public income will definitely result in the increase in the actual capacity of the drinking water market.