Market Research Report : Water Purifier Market in China 2011


Published on

For the complete report, get in touch with us at :

The Chinese water purifier market holds significant potential for investors due to a host of drinking water contaminants plaguing the water resources of the country. Barriers to entry are low and the market is largely unorganized. The growing domestic consumer base is likely to boost sales with the market expected to exhibit higher growth rates in future.

The report provides an overview of the water purifier market in China-beginning with an introduction section which offers a brief description of development of the market and the types of purifiers classified as per functionality and point of use. The market overview section provides an insight into the market and highlights the market size and growth. Import and export figures for purifiers, in value terms, have been provided in the next section. It also includes the regional distribution of exports and imports.

An analysis of the drivers explains the factors for growth namely high levels of water contamination, rising disposable income, health consciousness, inefficiency of alternate sources, weak current market penetration, Intellectual Property Rights protection and Government and NGO initiatives that popularize safe water practices. Key challenges include China’s bureaucratic framework, large counterfeit market and lack of proper health infrastructure contributing to substantial reputation risks.

The competition section provides an overview of the competitive landscape in the industry and includes profiles of the major players in the market including their financials.

Published in: Business, Technology
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Market Research Report : Water Purifier Market in China 2011

  1. 1. Water Purifier Market –Water Purifier Market ChinaJuly 2011
  2. 2. Executive Summary  The water purifier market in China shows very low penetration rates indicating a large scope  for investment Market  With rising urban income and health awareness the purifier market  is expected to witness  higher growth rates in future  As of  20‐‐ China’s output of water purifiers reached x million units  Exports have been increasing with  a CAGR of  p% over the last few years Export ‐  China imposes a q% duty on the import of water purifiers with a1,a2 and a3  being the  p q y p p , g Import I t leading exporters to China Drivers: Challenges: • Large consumer base facing contaminated          • Bureaucratic problems  drinking water • Counterfeit market Counterfeit market • Rising disposable incomeDrivers and  • Increasing health consciousness • Lack of health infrastructureChallenges • Inefficiency of alternatives sources • Low penetration  • Protection of new technology • Initiatives by the Government and NGO bodiesCompetition Major Players Company 1 Company 2 Company 3 Company 4 Company 5 Company 6 WATER PURIFIER MARKET IN CHINA 2011.PPT 2
  3. 3. •Introduction I d i•Market Overview•Export‐Import•Drivers & Challenges Drivers & Challenges•Competition•Recent Developments R D l WATER PURIFIER MARKET IN CHINA 2011.PPT 3
  4. 4. Domestic water purification in China has finally crossed the  nascent stage and launched itself internationally This is the phase wherein domestic  This period was characterized by  production of water purifiers first   Restored price levels started on a commercial scale  Simultaneous demand for domestic and  foreign brands  Purifiers mostly catered to the rich and Purifiers mostly catered to the rich and        Development of the export market  were expensive a, b and c developed into important manufacturing  areas   Industry was import based with the x and y enterprises both set up during this phase  Not popular with the masses 19‐‐ 19‐‐ 20‐‐ 20‐‐ 20‐‐  Gradually developing domestic technology was Gradually developing domestic technology was  plagued by severe competition, price wars and  general consumer mistrust In this period  Purifiers were mostly sold in combination with   Further market expansion particularly in the international  arena took place water dispensers   p and q emerged as major production bases d d j d ti b  Products were more tailored to suit environmental regulatory Products were more tailored to suit  environmental regulatory  norms  China reached international competition standards in export  quality  Purifiers slowly emerged as everyday life necessitySource: WATER PURIFIER MARKET IN CHINA 2011.PPT 4
  5. 5. Water purifier market in China has huge potential for  development  China Water Purifier – Overview Market Size and Growth • Globally, the market for water purification home  USD bn b% products was estimated at USD x  bn in 20‐‐ a2 20 • As of June 20‐‐ China’s output of water purifiers  a1 15 reached y mn units 10 • China imposes a p% duty on the import of water  purifiers 5  However , under the Singapore‐China Foreign‐Trade‐ 0 Agreement and the ASEAN‐China‐Foreign‐Trade  20‐‐ 20‐‐e Agreement , household water purifiers with at least q % of  manufacturing cost sourced from ASEAN economies or  China can be imported free of duty GDP/unit Water Consumed (20‐‐) – The import restrictions therefore not only provide protection to  the still nascent domestic  purifier industry but also stimulate  x1 being the most water  demand for manufacture inputs worldwide USD/m3 efficient province shows the  b1 highest potential for water  • Demand for purifiers in the z part of the country is  40 b2 technology investment relatively high due to the poorer water quality y g p q y 30 • After years of promotion, Chinas water appliances  20 b3 b4 b5 market is increasingly evolving in the direction of  10 household appliances 0 x1 x2 x3 x4 x5Source: WATER PURIFIER MARKET IN CHINA 2011.PPT 5
  6. 6. Exporting goods from emerging economies such as China is  an increasing trend in the developed nations of the world… Export – Overview  Exports • Export of Chinese purifiers and other domestic  USD mn appliances have been steadily increasing 200 • USA ‐ the leading importer over the last few years  y1 saw it’s import demand rising by over x% CAGR from  150 a5 20‐‐ to 20‐‐ a3 a4 100 • China’s export advantage has compelled the  a2 50 a1 developed nations to rethink their export financing  developed nations to rethink their export financing tools 0 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ Export (Region Wise: 20‐‐) Export (Region Wise: 20‐‐) P% m m n e% n o o u% j% q% p p r% q i% q f% s% r h% g% r t%Source: WATER PURIFIER MARKET IN CHINA 2011.PPT 6
  7. 7. Drivers & Challenges – Summary Drivers Water pollution in China Water pollution in China Rising middle class and increasing  income Challenges Increasing health awareness Bureaucratic problems Inefficiency of alternatives sources Large counterfeit market Low penetration  Lack of proper health infrastructure Protection of new technology Initiatives by the Government and  NGO bodies WATER PURIFIER MARKET IN CHINA 2011.PPT 7
  8. 8. Domestic Players in the Market (1/x) Company Snapshot: Company 1 Corporate Information Financial Performance Revenue Headquarters City a Revenue R Profit  P fi USD mn Profit / Loss USD mn Products Product 1, Product 2, Product 3 200 t 80 150 s 60 Founded 19‐‐ r 100 40 q Key People Person x – Founder, CEO 50 p 20 0 0 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ Business Highlights Business Highlights • In 19‐‐, post extensive research, Company 1 produced the first water treatment apparatus of China but branched into  domestic water equipment production in 19‐‐ • Being the first clean water technology company in China to attain 1SO14001 certification, it ventured into foreign  markets in collaboration with private equity firm k in 20‐‐ • In 20‐‐, it became the only water treatment equipment manufacturing company in China to be listed in the stock  exchange j • In 20‐‐ a  strategic cooperation agreement was signed between Company 1 and Organization z to initiate extensive  g p g g p y g joint programmes on environment protectionSource:  WATER PURIFIER MARKET IN CHINA 2011.PPT 8
  9. 9. Recent Developments Date Development a1 became the first to receive formal approval from China’s Ministry of Health, in launching its new  x1 20‐‐ se es o a e pu e s series of water purifiers in China a Israel’s largest food and drinks firm b1 in association with Chinese Home Appliances                                        x2 20‐‐ Giant b2 launched the world’s first water purifier that also heats water to a pre determined    temperature c1, one of the most renowned kitchenware makers  in China forayed into  the water purification market.  x3 20‐‐ in an effort to capture the potentially‐huge healthy diet market. in China  SAMPLE  SAMPLESource: WATER PURIFIER MARKET IN CHINA 2011.PPT 9
  10. 10. Thank you for the attentionThe Water Purifier Market ‐ China report is part of Netscribes’ Consumer Goods Industry Series.For more detailed information or customized research requirements please contact:Gaurav KumarPhone: +91 33 4064 6214E‐Mail: gaurav.kumar@netscribes.comAbout NetscribesNetscribes is a knowledge‐consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment &  g g f g p y p p fbusiness research, business & corporate intelligence, content‐management services, and knowledge‐software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one‐stop shop designed to fulfil clients’ profitability and growth objectives. p p f g f y g g p pDisclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. WATER PURIFIER MARKET IN CHINA 2011.PPT 10