Home appliance companies to force the water purifier market

Not long ago, according to data released by the China Household Electrical Appliances Association, 49.6% of users currently have doubts about the quality of tap water in their homes, and over 62% of users purchase water purifiers. Last year, sales of water purifiers increased by 20%.

Recently, domestic home appliance companies such as TCL and Midea have announced their entry into the water purifier market. At the same time, foreign brands LG have also entered the market. The industry believes that with the sudden emergence of subdivided areas, the domestic small household appliance market pattern may change this year.

The water purifier has generated 100 billion yuan of market penetration rate of only 2%

The demand for domestic water purifiers rises rapidly, and the output of water purifiers grows at a rate of 45% per year. China's domestic water purifiers industry has also entered a golden period of rapid development. The industry believes that the water purifier is the last piece of cake in the home appliance industry. In the next five years, it will form a market size of nearly 400 billion yuan.

According to E-Li Li, a researcher at the China Center for Disease Control and Prevention's Environmental and Health Related Product Safety Institute, compared with the penetration rate of 90% in Europe and the United States and 70% in developed countries in Asia, the product penetration rate of China's water purification industry is only 2%. Growing rapidly.

However, the clean water market has also exposed some cruxes during its development. Previously, in the random inspection by the Ministry of Health, it was found that 11 kinds of water purifier products failed the test, and unqualified items included excessive arsenic, excessive number of colonies, and failure to remove organic substances.

However, due to the initial stage of development, the current domestic water purifier industry still has problems such as uneven product quality in the water purifier market and the need to improve after-sales service standards. It is understood that the current price of water purifiers in the market ranges from 1,000 yuan to 10,000 yuan, with microfiltration, ultrafiltration water purifiers, reverse osmosis water purifiers, etc. Most of them use purely physical sterilization methods.

Chen Gang, deputy secretary-general of the China Household Electrical Appliances Association, said that there is great potential in the purification market, but consumers do not have enough knowledge of the water purification products. At present, 24% of the users of water purification are not aware of the time required for filter replacement and will cause secondary pollution. At the same time, the unsound after-sales service has also led to consumer discounts. Water purification companies still need to improve their products and services and increase their value-added space.

Household appliance companies to force the concept of clean water market stocks or broke out this year

The water purifier brand has shown an increasing trend in the last year. Especially after the air purifier has been fired, it has become a field for many household appliance companies to enter and deploy. In the layout strategies of AO Smith, Midea, TCL, LG, Angel, and Liyuan, it is planned to be a key area.

The data shows that there are currently more than 3,000 water treatment product manufacturers in China, and the market for water purification equipment has reached nearly RMB 20 billion. Last year, sales of water purifiers increased by more than 60% year-on-year.

It is worth noting that many traditional export-oriented home appliance companies have also announced in the near future that they will introduce air purifiers and water purifiers into the domestic market in two categories, and use this to export nearly a dozen items of their home appliances to the domestic market. market.

Ting Chen, director of the China Business Center of TCL Small Appliances Division, revealed that this year, the Group has accelerated the development of the water purification market. In September, the Water and Water Purifier Business Unit was established to promote the formation of the industrial chain of the water purification industry.

Dan Huide, director of external affairs of LG Electronics, told reporters: “In 2014, the company treated 'water treatment' as an important profit growth point and focused on the Chinese market.”

In the secondary market, due to the rise of the water purifier concept last year, Wanbangda, a water treatment concept share, and Jinmo Technology surged once. The CLP Environmental Protection, Clear Water Resources, and Energy Conservation have also performed well.

The industry believes that China's water purification industry has entered the "high-speed road" of development. Soon, the era of "profiteering" in China's water purification market will end and the industry will reshuffle.