In 2017, the average air quality status of PM2.5 was 43 micrograms per cubic meter, down 6.5% year-on-year; the average concentration of PM10 was 75 micrograms per cubic meter, down 5.1% year-on-year. With the government's efforts to improve environmental quality throughout the country. As the air quality continues to improve, the Chinese air purifier market faces new challenges and opportunities.
Market enters recovery phase
Since December 2017, the air purifier market has ended its rapid growth phase in the past five years and has entered an adjustment period. The market retail volume has declined, and price reduction promotion has become the main theme of the market. From the average price of products, the average price of online and offline in the first quarter showed a downward trend, the online price dropped more obviously, and the overall market consumption upgrade trend slowed down.
Beginning in the second quarter of 2018, the market gradually entered a recovery phase. According to the sales monitoring data of GfK China (GfK China), online retail sales of household air purifier products rebounded in April, up 46.8% year-on-year. In May, the offline market also began to recover, and retail sales increased by 19.5% year-on-year. Sales increased by 24.2% year-on-year.
From the price segment, offline growth is mainly concentrated in the mid-to-high-end price segment of 3,000-7,000 yuan, while online is concentrated in entry-level products below 2,000 yuan.
From the channel point of view, the retail volume of offline channels showed a positive growth year-on-year, among which the department store's gains were the most obvious, and the retail volume increased by nearly 40% year-on-year. Secondly, the home appliance chain channel, the retail volume increased by nearly 10%.
Although the air purifier market entered the adjustment period at the end of 2017, the market has experienced a certain decline. However, with the diversification of marketing strategies, product promotion, and the promotion of e-commerce festivals and offline store promotions, the market began to show positive signals.
Change product marketing strategy and look for "blue ocean"
Under the premise of a substantial improvement in overall air quality, manufacturers, e-commerce platforms and major channel operators have shifted from filtering PM2.5 to removing other pollutants such as formaldehyde in new products and major product promotion strategies.
According to GfK data, from January to May 2018, the proportion of retailer's CADR (clean air output ratio) of household air purifiers above 200% increased by nearly 9 percentage points year-on-year, and formaldehyde CCM (cumulative purification amount) was F4 grade retail. The share ratio increased by nearly 5 percentage points year-on-year.
At the same time, in addition to the more popular products of formaldehyde, the competition is becoming increasingly fierce. The average price of formaldehyde CADR>200 can be accepted by ordinary consumers, which promotes the growth of retail sales. In addition to formaldehyde filtration, other promotional points for the product include consumers, pet hair, and functions such as pollen, germs, volatile organic compounds, and various odors to attract more consumers.
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