Water purification market: the increase is obviously narrowing the difficulty of foreign brands

Compared with everyone's electricity, the growth rate of the water purifier market has always been enviable. According to the "2018-2023 China Water Purifier Market Prospects and Investment Opportunities Research Report", the size of China's water purifier market reached 27.1 billion yuan in 2017, a year-on-year increase of 33.2%. In 2018, the scale of China's water purifier sales will exceed 33 billion. yuan. It should be noted that there are few categories in the home appliance that have grown at a rate of more than double digits.

However, Nail Technology noted that from the first quarter of 2018, the high growth rate of the water purifier market has slowed significantly. According to data from Ovi Cloud, the retail sales of Q1 water purifier in 2018 was 4.64 billion yuan, up only 12.1% year-on-year.

This level of growth has been comparable to the average level of the home appliance industry. For example, in Q1 of 2018, the retail sales of refrigerators increased by 10.5% year-on-year, the retail sales of washing machines increased by 8.4%, and the retail sales of air conditioners increased by 14.9%.

In addition, if the growth rate of retail sales in the quarter is seen, the growth rate of water purifier Q1 in 2018 has dropped significantly. Nail Technology noted that the data show that in 2017 Q1-Q4, the growth rate of retail sales of water purifiers reached 40.6%, 47%, 22.3% and 27.9%, respectively, and the first quarter of this year slipped to 12.1%, the growth gap obvious.

If we look at the year-on-year growth rate of sales, this downward trend is equally obvious. In 2017, Q1-Q4, the growth rate of retail sales of water purifiers reached 10.8%, 38.9%, 21.4% and 34.4%, respectively, and the growth rate in the first quarter of this year was only 15.7%.

The market is slowing down and brand competition is more intense. Nail technology analysis believes that the market competition of water purifiers presents two major characteristics:

First, the increase in brand concentration is not obvious, the number of offline brands is still increasing, and brand competition is fierce.

According to the data from Ovi Cloud, the brand concentration of the Q1 line has increased in 2018, and the share of the top5 brand has increased from 59.8% in 2017 to 63.8% in 2018. At the same time, Nail Technology also noticed that the brand concentration of the offline market has declined. The share of the top5 brand has dropped from 88% in 2017 to 86.8%. Overall, the brand concentration of the water purifier market has not increased significantly. At the same time, the number of brands participating in offline competition is growing, from 90 in 2017 Q1 to 96 in Q18 in 2018.

Second, the oligarchic pattern has not yet formed, and domestic brands have increased their efforts to seize the market, and the difficulty of defending foreign brands has increased.

From the brand structure in 2017, the annual sales of the three major brands in the first camp are more than 1 billion yuan, which are composed of Midea, Gion (plus Unilever) and AO Smith. The second camp is mainly from Angel. , Philips, Yikou Sunrise Oriental (four seasons Mu Ge plus sun rain), Kai Neng, Hao Ze, Bi Shuiyuan, 3M, Pentair, Yunmi, Gree and other brands. The third camp is mainly composed of brands such as TCL, Changhong, Sloan, Jurkon, Enicks and Quanlai. Based on the data of Ovi Cloud and other sources, the domestic brands have developed rapidly and the market share of foreign brands has been strongly divided. The industry has not yet formed an oligopoly market.

Producer Observer and Nail Technology founder Ding Shaojiang believes that water purifiers are still in the popular market dividend period in China as a new home appliance category. In the case that foreign brands cannot establish absolute technical barriers, domestic brands rely on channels, prices, Advantages in manufacturing and other aspects, indeed have the ability to seize a larger market share, which is reflected in many other home appliances categories, and with the improvement of industry standards and the deepening of user education, the market reshuffle will be deepened, the technical basis The quality and branding capabilities will determine the ultimate height of the water purifier business.

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