Compared with large appliances, the growth rate of the water purifier market has always been enviable. The “2018-2023 China Water Purifier Market Prospects and Investment Opportunities Research Report” shows that in 2017 China's water purifier market scale reached 27.1 billion yuan. With a year-on-year increase of 33.2%, the sales volume of water purifiers in China may exceed 33 billion yuan in 2018. It is important to realize that there are few categories of large household appliances that have a market growth 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 was significantly slowed down. According to data from Ovie Cloud Network, the retail sales of Q1 water purifier market in 2018 was 4.64 billion yuan, only Growth of 12.1%.
This level of growth has been comparable to the average level of the household appliance industry. For example, in Q1 of 2018, the retail sales of refrigerators increased by 10.5% year-on-year, retail sales of washing machines increased by 8.4%, and retail sales of air conditioners increased by 14.9% year-on-year.
In addition, if we look at the quarterly increase in retail sales, the growth rate of water purifier Q1 in 2018 has already dropped significantly. Nail Technology noted that the data shows that in Q1-Q4 2017, the retail sales growth of water purifier market It reached 40.6%, 47%, 22.3% and 27.9%, and slipped to 12.1% in the first quarter of this year. The gap between the year-on-year growth was significant.
From the perspective of year-on-year sales growth, this decline is equally evident. In Q1-Q4 2017, the growth rate of retail sales of water purifiers market reached 10.8%, 38.9%, 21.4%, and 34.4%, respectively, compared to the same period in the first quarter of this year. The growth rate is only 15.7%.
The market is decelerating, and brand competition is becoming more intense. Nail Technology believes that the market competition of water purifiers presents two major characteristics:
The first is that the brand concentration has not improved significantly, the number of offline brands is still increasing, and brand competition is fierce.
Ove Cloud Network data shows that in 2018, the concentration of brands under the Q1 line increased, and the share of the top5 brand increased from 59.8% in 2017 to 63.8% in 2018. However, Nail Technology also noticed that the brand under the offline market Concentration has declined, and the top5 brand's share has dropped from 88% in 2017 to 86.8%. Overall, brand concentration in the water purifier market has not increased significantly. At the same time, the brands participating in the competition are offline. The number is growing, from 90 in 2017 Q1 to 96 in Q18.
Second, the oligopoly structure has not yet formed. Domestic brands have increased their efforts to snatch up the market. Foreign brands have become more difficult to maintain.
From the perspective of the brand pattern in 2017, the annual sales of the top three brands in the first camp were more than RMB 1 billion, which were respectively composed of Midea, Yuyuan (plus Unilever), and AO Smith. The second camp was mainly composed of Angel. , Philips, Yee Kou Sunrise Oriental Department (Four Seasons Mu Ge Jia Sun Yu), Kai Neng, Ozner, Clearwater, 3M, Pentair, Yun Mi, Gree and other brands. The third camp consists of TCL, Changhong, Sri Lanka. Long, Weierkang, Anixike, Quanlai and other brands are formed. According to the data from the comprehensive Aowei Cloud Network, domestic brands have developed rapidly and have strong market share of foreign brands. The industry has not yet formed an oligopoly market.
Ding Shaojiang, the founder of Naru Technology, believes that water purifiers as an emerging household electrical appliance category are still in a pervasive market dividend period in China. In the case that foreign brands cannot establish absolute technical barriers, domestic brands rely on channels, prices, The advantages of manufacturing, etc., indeed have the ability to capture a larger market share. This is reflected in many other home appliance categories. With the improvement of industry standards and the deepening of user education, market reshuffling will be further advanced. On the quality and brand capacity will determine the ultimate development of water purifier companies.