Air purifiers and water purification equipment market conditions are very different

In the first half of 2018, the air purifier market continued the sales bottleneck caused by the sharp decline in the number of “smog days” at the end of last year. The “quantity fell” became the key word in the air purifier market in the first half of the year. "The decline momentum, follow-up development is not optimistic. In the first half of 2018, the volume of online air purifiers decreased by 15.2% year-on-year to 1.467 million units; the retail sales amounted to 1.97 billion yuan, a year-on-year decrease of 45.3%.

After several years of stable development, the water purification equipment market in the first half of 2018 ushered in a wave of “big outbreaks”, and its “quantity increase” is in stark contrast to the performance of the air purifier market. At present, the water purification equipment market is still in a period of rising consumption. The product structure in the first and second-tier markets is gradually shifting to high-end, and the high-end products in the third- and fourth-tier markets are spreading at a high speed. In the first half of 2018, the online retail sales of water purification equipment reached 2.66 million units, a year-on-year increase of 46.1%; the retail sales reached 3.72 billion yuan, a year-on-year increase of 69.1%.

Air purifiers and water purification equipment market conditions are very different

Why are the market conditions of air purifiers and water purification equipment in the first half of 2018 different for healthy home appliances? The reason for the rapid growth of the air purifier market in recent years is more due to the surge in the number of “smog days”. The panic caused by it, and the characteristics of “localization” are more obvious. With the introduction of relevant effective policies and measures at the national level, since the second half of 2017, the smog “hardest hit” – the air quality situation in the Beijing-Tianjin-Hebei region has been greatly improved, and the number of “smoggy days” in the country has dropped sharply. This has made many air purifier enterprises with the slogan of “destroying artifacts” once caught in the dilemma of “heroes useless”, and the market’s “falling cliff” decline is inevitable. “Everyday to eat” has become a past tense, and the air purifier industry urgently needs to develop new market growth points to reverse the trend.

The release of the mandatory national standard for the water-restriction value and water efficiency rating of reverse osmosis water purifier has enabled the water purification equipment to usher in a new round of product structure upgrade. In the first half of 2018, the high-end development trend of the water purification equipment market is obvious. New technologies and new functions are constantly emerging. Consumers have strong demand for mid-to-high-end products, and online retail sales account for up to 50%. At present, most water purification enterprises have begun to pay more attention to “full house water purification”, and the third and fourth-tier markets still have extensive market space, and the water purification equipment market will continue to increase steadily.

Air Purifier will transform from “de-streaking” to “indoor air environment improvement”

In the first half of 2018, “clear inventory” became the top priority for major air purifier companies. The middle and low-end products have become the "marketing responsibility" in the first half of 2018, and the sale of high-priced products at a large price has become a major promotion means for major air purifier enterprises. From the perspective of online product price range, 0-999 yuan, 1000 yuan to 1999 yuan as the main price segment, Heli occupied nearly 90% of the retail volume, of which 0-999 yuan price segment retail volume accounted for the highest price segment. It is 70.35%; the retail sales of products with a price range of 2,000 to 3,499 yuan accounted for 9.28%, a year-on-year decrease of 67.35%. The retail sales of the price segment of 3,500 yuan to 4,999 yuan was 2.18%, a year-on-year decrease of 12.99%. In the first half of 2018, the high-end products in the air purifier market were the most seriously dragged down. Among them, the retail sales of the price range of 5,000 yuan to 6999 yuan fell by 90%, and the price range of 7,000 yuan and above fell by more than 50% year-on-year. Many of them held high quality. The consumption upgrade "Big Banner's mid-to-high-end air purifier enterprises are in an awkward position. Obviously, the tide of consumption upgrading has not fully "embraced" the air purifier market, and the industry has not yet found a strong growth point that can fully stimulate market demand in the "post-smog era". In the second half of the year, the efforts of major enterprises to “clear inventory” will continue, and the air purifier market will inevitably accelerate the strategic transformation from “eliminating” to “improving indoor air environment”, fully educating the market and accumulating user reputation. On the basis of this, we must pay attention to the pain point of consumption and seek a breakthrough.

In the first half of 2018, among the top ten online retailers of branded air purifiers, foreign brands accounted for 6 seats, and the total retail sales accounted for more than 50%. Among them, Japanese and Korean products that once had “out of bounds” were only squeezed by Panasonic. Into the list, the European and American brands occupy the other five seats, the four domestic brands listed in the top ten list are Internet companies, respectively, Xiaomi, 352, breathing, airx. In the first half of 2018, the online air purifier brand retail volume top ten, domestic brands accounted for six seats, total retail sales accounted for more than 70%. It can be seen from the quantity and amount that the retail volume of foreign brands is not as good as domestic brands, but the unit price of products is often higher than that of domestic brands, thus occupying an advantage in retail sales.

Among the many air purifier brands, AO Smith had a good market sales, but in the “post-smog” period, its sales performance was bleak. In the first half of 2018, AO Smith has fallen out of the top 10 in the ranking of online air purifier brand retail sales. It only ranked 10th in the online retail price of online purifiers based on its high price rating. Only 1.75%. In the first half of 2018, AO Smith changed its marketing strategy and successively launched a high-efficiency formaldehyde removal machine to focus on the decoration, infants and other market segments, but the product upgrade is limited, the market response is more general, and the product quality and after-sales continue to burst. Services and other issues are also constantly overdrafting the patience of consumers.

All categories of water purification equipment are exploding

In the first half of 2018, the online water purification equipment market was improving. Among them, the retail sales of pure water machines far exceeded other categories, accounting for 46.08%; the retail sales of water purifiers ranked second, the proportion of retail sales reached 27.41%, and the retail sales increased by 46.37%. The total sales of soft water machine and central water purifier accounted for less than 10%, but the growth trend on the line was obvious. Among them, the softener and central water purifier increased by 114.07% and 289.77% respectively. The rise of the concept of "full house water purification" and the residents' pursuit of quality of life have promoted the explosive growth of the whole category of water purification equipment market. As the major enterprises increase their purification technology and purification efficiency, water purification equipment The market will continue to grow steadily.

In the first half of 2018, the market share of reverse osmosis products in the online market for water purification equipment continued to expand, and the market share of retail sales reached 46.08%. The market share of retail sales of ultrafiltration membrane products ranked second, with the retail market accounting for 20.77%, an increase of 46.37%. The water purifier, which usually uses reverse osmosis technology, is a pure water machine. The reverse osmosis water purifier has higher filtration precision and can filter out heavy metal ions, bacteria and other impurities, and the purified water can be directly consumed. Therefore, under the current trend of “quality consumption, healthy living”, it can be seen that consumers are more willing to purchase reverse osmosis water purification equipment.

In the first half of 2018, in the online market of water purification equipment, the price of products ranging from 700 yuan to 2,999 yuan is the mainstream consumer price segment. Among them, the price segment of 1,500 yuan to 2999 yuan accounts for nearly half of the market retail sales, and the market share of retail products of the price segment of 700 yuan to 1499 yuan is 22%. In addition, although the proportion of products in the price segment above 3,000 yuan is not high, the overall growth rate is not low, showing a strong growth potential. Under the trend of consumption upgrading, mid-to-high-end products with new functions and new technologies will provide subsequent growth drivers for the water purification equipment market.

In the first half of 2018, domestic brands in the online water purification equipment market slightly dominated the market share of retail sales, accounting for 57%. From the perspective of the proportion of retail sales, domestic brands are approaching 70%. The two brands of Midea and Gion have the top two retail sales, and the total retail sales of the two brands account for 45%. Among them, Midea won the online water purification equipment championship in the first half of 2018 with a 24% retail sales. Midea (X400S) MRC1686A-400G water purifier, with a scientific and technological design, built-in GE reverse osmosis filter, anti-blocking, long life, can effectively filter heavy metals. At the same time, Midea's patented five-film technology ensures efficient and rapid water production and low environmental protection. In recent years, Midea relies on its own hard power in the manufacture and research and development of water purification equipment, and continues to deeply plow the market segment. Starting from the painful demand of consumers, the products are widely recognized by consumers.

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