For the complete report, get in touch with us at : info@netscribes.com 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.

1. Water Purifier Market –
Water Purifier Market China
July 2011

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 income
Drivers and • Increasing health consciousness • Lack of health infrastructure
Challenges • Inefficiency of alternatives sources
• Low penetration
• Protection of new technology
• Initiatives by the Government and NGO bodies
Competition Major Players
Company 1 Company 2 Company 3 Company 4 Company 5 Company 6
WATER PURIFIER MARKET IN CHINA 2011.PPT 2

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. 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 necessity
Source:
WATER PURIFIER MARKET IN CHINA 2011.PPT 4

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, China's water appliances 20 b3 b4 b5
market is increasingly evolving in the direction of 10
household appliances
0
x1 x2 x3 x4 x5
Source:
WATER PURIFIER MARKET IN CHINA 2011.PPT 5

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. 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. 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 protection
Source:
WATER PURIFIER MARKET IN CHINA 2011.PPT 8

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
SAMPLE
Source:
WATER PURIFIER MARKET IN CHINA 2011.PPT 9

10. Thank you for the attention
The Water Purifier Market ‐ China report is part of Netscribes’ Consumer Goods Industry
Series.
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