Water Purifier Industry

Published:2013-05-11    Source:HICG

With the rapid development of the economy, the global water resource is suffering the unprecedented pollution and destruction. According to China’s environmental protection department statistics, 82% of the country’s rivers are polluted to various extents. In China’s seven major river systems, almost 40% of the rivers are not suitable to be as drinkable water resources; 78% of the rivers in cities are not suitable to be as drinkable water resources; about 50% of the urban groundwater is polluted. These shocking figures not only warn people to treasure water resources, but also provide an opportunity for the rapid development of water purifier industry.

According to a recent research by Shanghai Huaran Investment Consulting Group, water purifier has a history of 10 years in China, and the overall market is still growing. In 2012, the output value of China’s water purifier industry was CNY 2.5 billion. With the improvement of people’s healthy consumption consciousness, the water purifier market is hotter and hotter. The number of new entrants is increasing; the expansion projects are growing; the output value of Chinas water purifier industry is expected to be CNY 13.5 billion in 2017. 

Seen from the sales regions distribution, South China and East China occupy a larger market share, the both of them accounting for 63% of the country’s market share; the market share of other regions is less than 10%.

At present, the continuous expansion of market share and the rise of raw materials price bring contradiction to enterprises. The competition in the industry is fiercer; the domestic brands represented by Qinyuan, Midea, Angel; the imported brands represented by Westone, 3M, and AO Smith; and the main battlefield is middle and high-end market. 

In recent years, the competition in the water purifier industry is transferring to diversification, from single competition to compound competition. The single competition means that it is not only difficult to obtain and maintain a competitive advantage, but also hard to meet the diversified demand of customers. The compound competition has become the main competition means. Meanwhile, the compound competition pattern will accelerate the merger and acquisition of the water purifier industry.

Shanghai Huaran Investment Consulting Group pays close attention to the water purify industry and will consistently focuses on the reshuffle of the industry.