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Analysis of the semi-annual water purifier market in 2019

In the first half of 2019, the water purifier market as a whole showed a weak growth trend, and the industry's growth rate further narrowed. According to the total data released by Avi Cloud (AVC), the market size of 2019H1 water purifier was 13.83 billion yuan, up 1.3% year-on-year; the retail volume was 5.024 million units, up 8.6% year-on-year.
Water purifier market

Compared to the big data in the first half of the year, the monthly amount of data is even more terrible. The year-on-year growth rate of retail sales has been falling all the way. The volume of retail sales has only been strong in the first three months, and the subsequent weakness is visible to the naked eye. On the one hand, after years of development, the water has entered the bottleneck period. In 2018, the various sales will overdraw the market in 2019. On the other hand, the second line has a growth bottleneck. The development of the third and fourth line markets takes time, the original market. Rapidly popularized and gradually saturated, the new market can not expand rapidly, the new products are not strong, the update is not prosperous, and the market is caught in stock competition.

In terms of online and offline, according to Aowei Cloud (AVC) data, online retail sales reached 3.60 billion yuan, up 22.5% year-on-year; retail sales reached 2.316 million units, up 27.0% year-on-year. The retail sales of offline market was 10.29 billion yuan, down 4.6% year-on-year; the retail volume was 2.708 million units, down 3.3% year-on-year. Online retail sales accounted for 26.1% of the total market, accounting for 46.1%, still the home of the offline market.
Water purifier

Looking at the sales nodes in the first half of the year, compared with previous years, the online market 618's single-week driving power is very small. Although it seems that the sales volume has increased in the past few weeks, it is far from making up for the weakness of the 618 sales in the week. In the offline market, the sales of the three promotion nodes of 315, 51 and 618 were either down or roughly flat.
Stock market competition is heating up

In terms of brand attributes, the entire water purifier market has increased foreign investment, online domestic capital has increased, and brand appeal and price competition have formed a market synergy.

From the offline market, in general, the overall number of brands under the line remains unchanged, and the number of offline brands is unchanged from the first half of 2018. However, the industry as a whole has maintained a relatively stable iteration, and the number of entry and exit brands is 20. Among them, 7 foreign brands entered and 6 were withdrawn. As the offline promotion activities in the first half of 2019 are relatively weak, the performance of foreign-funded enterprises is relatively eye-catching. According to data from Avi Cloud (AVC), foreign capital accounted for 34.5% in the first half of 2019, up 3.5% year-on-year.

From the online market, unlike the offline market, the number of brands on the online market is rapidly increasing. According to statistics from Avi Cloud (AVC), in the first half of 2019, compared with 2018, online water purifiers exited 43 brands and entered 89. Among them, domestic capital entered 65 and exited 30. Domestic investment increased by 1.0% year-on-year. This is because, under the premise of shrinking the entire market environment, the entry threshold for online market is relatively low, so more domestic companies have chosen online.
Under the pressure of price wars

According to the data of Avi Cloud (AVC), according to sales, in the first half of 2019, in the offline water purifier market, the price ranges of 3500-3999 yuan and 4000-4499 yuan are obviously rising, especially It is the price segment of 3500-3999 yuan, accounting for 33.4%, further squeezing the market at both ends of the price segment.
Water purifier brand

But the online market is completely different. On the one hand, most of the sales are concentrated in the low price segment; on the other hand, the basic price segments are all transferred from the high price segment to the low price segment. The market with high price is more and more humble in the proportion of the total online market sales.

From the perspective of flux, the offline market fluctuated little, and the average price of 500 gallons fell by 28.6%. Correspondingly, its market share increased by 4.8%. It can be seen that on-demand purchase should still be the mainstream. Or the impact of online market share receiving average price fluctuations is very obvious, the average price decline of 100, 400, 500, 600 gallons of flux, in terms of market share has a significant or more obvious increase.
Market redistribution under the background of channel sinking

As far as the channel is concerned, it seems that the online and offline markets are diverging, and the online market continues to maintain rapid growth. According to the data of Avi Cloud (AVC), online market sales in the first half of 2019 increased by 34.8% year-on-year. The offline market showed a significant contraction, with the year-on-year sales of the entire online market down 8.1% year-on-year. The first- and second-tier markets shrank severely, down 12.3% and 7.5% respectively. There is also a slight decline in the tertiary market and the rural market.

From the perspective of the brand, the concentration of the head brand is still very high, but it is gradually reduced according to the order of the T1- rural market. Overall, the share of second- and third-tier companies has increased significantly.

In terms of regional sales, in the future, the Southwest will be the main Raiders.
Deepen the pain points of users and promote product upgrades

At present, the water purifier products have been relatively mature, and the product's vitality is more focused on the mining of pain points and optimization of product details. At present, the main development trends of the market can be divided into large flux, land-to-water ratio, small volume and smart App functions. For the time being, online may be faster than offline because of the relative transparency of market information.
Water purifier market

Worry about the external environment of the industry

If the internal environment of the water purifier industry is generally positive, then the external environment can be said to be less optimistic.

First, with the development of the water purification industry, the market base has gradually increased, and the dividend has gradually disappeared. Since the domestic outbreak of economic development and environmental protection in 2012, the attention of the Chinese people to healthy drinking water has increased significantly. However, after nearly seven years of market popularization, the current base of water purifiers has been relatively high, and the water purification nationwide. The penetration rate is nearly 20%, and the penetration rate of some first- and second-tier cities has reached 30%. The health concern dividend caused by water pollution is gradually weakening.

Second, the old market is becoming increasingly saturated, but the new market is difficult to cultivate and takes time. The first- and second-tier markets have entered a staged bottleneck, and the market purchase rate has declined. The third- and fourth-tier markets have been affected by the previous “going out of the river” style, and a large number of orphans are flooding, which is extremely harmful to the industry. Enterprises have to face the situation of cultivating market consumer confidence when they promote to the third and fourth grades.

Third, given the particularity of the Chinese market, there is a staged bottleneck in the popularity of water purifiers in China. In China, due to the housing relationship, the kitchen area is relatively small, and some old houses have certain restrictions on the popularity of water purifiers. In addition, China's long-term drinking habits of drinking hot water have reduced consumers' dependence on water purifiers. Therefore, the popularity of the domestic market is not expected to be popular in foreign markets in a short period of time, and there will be widespread bottlenecks in the domestic market.
In summary, in the first half of this year, the offline market began to experience frequent negative growth, the online market is still growing, and the overall market began to compete for the stock market. Aowei Cloud Network (AVC) predicts that the competition pressure in the water purifier market will further increase this year, and the growth rate will further slow down. It is estimated that the annual sales will be 33.40 billion yuan, a slight increase of 5.4% year-on-year; the sales volume will be 11.791 million units, a year-on-year increase of 9.9%.

 

 

 



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