From “Net Drinking Water Equipment Manufacturer” to “Net Drinking Water Solution Service Provider”
The third-party research report of China’s water purification market from consulting firm Frost & Sullivan shows that China’s water purifier market total The scale reached 103.3 billion yuan in 2017, with a compound growth rate of 21.6% in the past 5 years. It is expected to reach 233.2 billion yuan by 2022. The new installation market in 2017 accounted for 68.6% of the market, with sales of 70.9 billion yuan. .
Angel, who is based in Beijing’s Daxing Airport this year, is a veteran of the 100 billion market. As early as the 1980s, Angel developed the first water purifier; in 1993, the first water dispenser was also successfully developed; in 2014, Angel A6 was officially listed; in 2018, the company launched a whole house water purification program, It fully meets the needs of households’ net drinking water; in 2019, Angel first launched the kitchen all-around water purifier to help solve the pain points of clean water, drinking water and water in the kitchen scene.
The water purification industry is an emerging industry, has great market development space, but the market homogenization phenomenon is serious. The level of industry innovation is low. It is generally believed in the industry that household water purifiers have low technological content, and they can be counterfeited without having to invest in research and development. Therefore, the overall competitiveness is insufficient, and the resistance of foreign brands is weak. In addition, there are many informal enterprises, and counterfeit and shoddy products are rampant.
It is understood that less than one-third of water purifier companies currently have water-related approvals. Many small workshops without hygienic approvals, the purchase of cheap spare parts are assembled according to the gourd painting, and the products produced have a series of quality problems such as short service life, poor filtration effect, machine leakage and rust, and the product failure rate is high. . In addition, there are many problems in the actual situation of water purifier after-sales service. The main reason is that due to the lack of national standards and industry standards, there are many service organizations and individuals, and the quality level of after-sales service cannot be guaranteed.
A large number of predators hinder the industry. According to the data from Ovi Cloud, the sales volume and sales volume of the water purifier industry have dropped by 6% and 7.8% respectively year-on-year.. From an industry perspective, in the last two years, offline channels have experienced a market stage from growth to further reshuffle, and companies that lack innovation and technology to stop the industry will be eliminated.
The core component of the water purifier is the reverse osmosis membrane technology. The roll reverse osmosis membrane technology is designed from Dow Chemical in the United States and was first used in the field of industrial water purification. The household water purification field directly uses the industrial reverse water osmosis reverse osmosis membrane technology, but the water quality environment in China is very complicated, which easily leads to the short service life of this reverse osmosis membrane, which is easy to block and even affect the filtration effect of water purification. However, due to the lack of investment in R&D funds by many water purifier manufacturers in China, the lack of attention to R&D has led to the core technology being subject to people and the inability to change the traditional roll-type reverse osmosis membrane.
In recent years, all major brands have been working on technology. The kitchen appliance brand has developed “NSP membrane chromatography double Water purification technology, which removes heavy metals while retaining beneficial minerals in the water.Angel developed a “full-effect membrane technology” this year, using reverse osmosis membrane flow and coiling processes to make production The performance of the reverse osmosis membrane is more stable, the salt rejection rate is higher, the anti-pollution ability is stronger, and the water purification system capable of supporting more than 75% recovery rate can effectively overcome the low water flux and low salt rejection rate of the conventional reverse osmosis membrane. Common problems such as short service life. Using its own technology, Angel has created a series of differentiated products, such as the A6 Pro water purifier with super activated carbon technology, and the end-use RO machine with full-effect membrane technology. Span>It is reported that full-effect membrane technology has been obtained in the country. Five utility model patents.
In terms of R&D expenses, the company’s annual R&D investment is growing, and R&D investment usually accounts for 5% of total revenue. According to reports, before 2014, Angel’s R&D investment reached 50 million. After 2014, it was adjusted to “not on the back cover”. Angela President Konga revealed that the company’s funding for research and development in 2019 will be no less than 100 million yuan, much higher than its peers. In addition to funding, talent is the key to success. At present, the company has cooperated with many universities at home and abroad, and has also established the “Angel Scholarship” in the Department of Polymer Science of Zhejiang University and the School of Materials of Southwest Jiaotong University.
Although this is a home appliance fieldIn the blue ocean market, there are many water purifiers and water purification solutions companies that are constantly entering the market, but based on the health of life and the water purification industry with obvious entry barriers for product technology reserves. The market is very conservative about the new brand. According to the statistics of China Water Purification Network, the top ten brands of Chinese water purifiers include Angel, Lisheng, A.O. Smith, and Midea. The companies that dominate the mainstream mostly originated in the 1990s. After more than 20 years of technology precipitation, brand building and sales service network construction, the development situation is now formed. .
Data statistics show that online channels, the top ten water purifier brands in the market share , the total market share data is about 80%; offline channels, market share The top ten water purifier brands, the total market share data is as high as 95%. It is difficult for new brands to rank among the mainstream markets. For example, large-scale e-commerce, home appliance stores and other channels, deepening the regional market, expanding new channel forms has become one of their few choices, and the water purifier market is constantly enriched, covering the mainstream channels. Unserviceable market space is a powerful complement. However, targeting this high-growth industry, there are also startups that have taken a different approach, such as the reported 100 million Clean Water Mall, choose to make itself a water purifier vertical e-commerce platform.