AICKSN interprets the current
water purifier market status and opportunities from the perspectives of market demand, market characteristics and development opportunities. The details are as follows:
1. Insufficient economic market demand Five factors drive the release of potential demand
The water purifier category is a quality demand. Since 2019, it has faced a situation of insufficient market demand and a slight shrinkage in scale. Due to the multiple impacts of the epidemic, as well as consumer demand for new and new iterations, the market has continued to decline in 20 and 21. situation. According to AICKSN forecast data, the omni-channel sales of water purifiers in 2021 will be 22.68 billion yuan, a year-on-year decrease of 5.1%, and the sales volume will be 9.286 million units, a year-on-year decrease of 8.7%, showing a product upgrade situation. Although the market has declined significantly, from the perspective of demand, the potential demand for my country's water purifier market is very extensive. AICKSN is still optimistic about the market prospects of
water purifiers, and it is expected to grow again in the future. The factors are as follows:
1. The household penetration rate of water purifiers in my country is relatively low. According to AICKSN forecast data, the number of water purifiers owned by 100 households in my country is about 18.3. Compared with the penetration rate of more than 70% in Europe and the United States, my country still has a wider market. space;
2. The horizontal expansion of consumer demand. Consumers have expanded from the traditional demand for drinking purified water to using purified water. The internal demand for drinking purified water has also been upgraded, and it has been upgraded to drinking warm water and drinking healthy water. The upgrade of demand can accelerate the promotion of product iterations. To meet broader consumer demand, it is conducive to the expansion of market scale;
3. The consumer groups are getting younger. As the post-90s and post-00s gradually become the main consumer groups, the concept of social consumption has undergone significant changes. Young people have strong spending power. Pay for a more beautiful appearance and a novel consumer experience;
4. The market space for sinking is vast. With the rise of live broadcast, short video, social e-commerce and the improvement of the logistics system, the needs of the third- and fourth-tier cities and rural areas where water purifiers have been difficult to penetrate in the past have been explored;
5. The number of water purification awareness groups is huge. According to the data of the China Business Industry Research Institute, the market size of bottled water, bottled water, community water stations in my country has exceeded 280 billion yuan in 2019, and it can be seen that the consumer groups who drink purified water in my country On the surface, products such as bottled water form a competitive relationship with water purifiers. However, with the upgrade of water purifier products with stronger functions, lower cost of use, and better consumer experience, there are still many problems with other products, such as bottled water. The cost of water is high, the quality of bottled water cannot be guaranteed, and the filter elements of community water stations cannot be replaced on time. It is believed that with the improvement of consumer awareness, consumers of other products will gradually convert to water purifiers.
2. Insight into the six characteristics of the water purification industry and grasp the new trend of the water purification industry
The upgrade of consumer demand has also brought about significant changes in the market structure and product structure. The specific features are:
1. The online market share has increased, and the epidemic has changed consumption habits. The online share of water purifiers has achieved a jumping growth in 20 years. It is estimated that the online market sales in 2021 will be 9.68 billion yuan, accounting for 42.7%, and the sales volume will be 6.203 million units. , accounting for 66.8%, and it is expected that the traffic will be further transferred in the future;
2. The offline hardcover real estate is booming. As of October 2021, the matching rate of
water purifiers will reach 20.6%, mainly in first-tier cities, but second-tier cities have achieved rapid catch-up with high growth rates;
3. The pattern of head brands is stable. In the past 18 years, the concentration of online Top 5 brands has remained at around 60%, and offline is close to 80%. The development situation of long-tail brands has become more and more difficult. In the past 21 years, a large number of small and medium-sized brands have been gradually eliminated from the market;
4. Product functions have been upgraded in an all-round way. The online sales of 600G+ flux products account for more than 60%, and the offline sales also have nearly 50%. In addition, the integrated heat-purifying products satisfy consumers' "clean water + hot water" Demand has become a new consumption growth point in 21 years, and the trend upgrades such as intelligence and environmental protection are also very obvious;
5. The speed of product iteration has decreased, and the efficiency of individual products has improved. Compared with the fierce market competition in 20 years, all brands have adopted the business idea of shrinking product lines to create popular models in 2021. The number of new product releases has been greatly reduced, and the iteration speed has slowed down. With the help of short videos and live broadcasts, the market performance of new products is not weak, and the stand-alone efficiency is significantly improved;
6. The structure of online and offline price segments has been significantly improved. The entry-level price segment of online product upgrades has shifted to 2-3K. The integrated net-heating products have driven the share of high-price segments to increase, and offline prices have grown in tiers driven by star items.
3. Grasp four new opportunities and seek high-quality development
With the rapid changes in consumer demand and market characteristics, how can each brand of
water purifier take their own development path? According to the current market situation, there are four opportunities to try:
1. Accelerate product upgrades and improve bargaining power. Brands can further meet high-level consumption upgrades, such as energy conservation and environmental protection needs, and develop recyclable filter elements or filter cleaning fluids to further extend the life of the filter element and directly reduce the follow-up cost of consumers. , Add steam generators, high-pressure faucets and other equipment to the product, so that there is no residue when washing pots and dishes, tableware disinfection is more convenient, adding more functions to the product, meeting the needs of more scenarios, improving the bargaining power, and helping enterprises to ensure revenue, Realize the healthy development of the industry;
2. To solve the pain points of consumption, there are still some shortcomings in water purifier products. According to the monitoring of digital user reviews, there are still deficiencies in noise, water output, purification effect, etc., and the rate of negative reviews is high. Brands can consider investing in part R&D energy to solve consumption pain points;
3. For subdivided groups to meet different needs, at present, the water purification consumer groups mainly include pragmatists, mothers and infants, and quality lifers. These three groups of people have slightly different consumption concepts and needs. In addition to the basic water purification function of the product In addition, adjusting additional functions for different groups of people can better open up the situation, such as launching cost-effective products for pragmatists, launching products with safe materials and water sterilization functions for mothers and infants, and launching elegant appearance and novel experience for high-quality living homes. Products, in addition to water purifiers, desktop drinking machines with richer usage scenarios and instant hot water dispensers also meet the needs of consumer segments, and achieve rapid growth in 21 years;
4. Connect online and offline, and do a good job in global marketing. Since the epidemic, webcasting, social e-commerce, and private domain traffic have become new marketing methods, and a large number of traditional channel traffic has been diverted. Brands must keep up with the pace of development , firstly grasp the main sales port of each e-commerce brand, and at the same time do a good job in building the voice of its own brand in new tracks such as Douyin, Pinduoduo, and Xiaohongshu.
In the end, AICKSN wishes all brands to develop steadily in the face of adversity, make concerted efforts to promote the progress of the industry, and forge ahead in the face of the broad potential market to achieve new achievements.
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