Following nearly two decades of evolution, China’s water purification industry has transitioned from rapid expansion to a phase of stable growth, signaling fresh opportunities and challenges ahead. The post-pandemic surge in health consciousness has invigorated this sector, shifting consumer demand from basic water purification to comprehensive solutions, thereby driving industry growth.
As consumers increasingly prioritize safety, health, and comfort in their water consumption, the water purification industry is experiencing a new wave of growth. Now in its “second phase,” industry players are back to competing on product quality, brand strength, and distribution channels.
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Rising Market Growth: Embracing Health as a Leading Trend
According to AVC’s comprehensive data, retail sales of water appliances (including purifiers, dispensers, and related equipment) in 2023 totaled 29.7 billion yuan, marking a 10.8% year-on-year increase. Notably, water purifiers alone saw a retail sales increase of 11%, reaching 20.5 billion yuan, with sales volume up by 9% to 8.02 million units. These figures underscore significant and healthy market growth.
Compared to more mature household appliance categories, water purification remains a field ripe with business potential, offering extensive market opportunities and a promising future trajectory. The water appliance market is poised for continued robust growth in 2024.
From a developmental standpoint, industry trends are steering towards health, quality, intelligence, and scenario-based services. Staying ahead of evolving consumer preferences through technological innovation and product enhancements is paramount for meeting market demands and expanding water purification applications.
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Meeting Diverse Industry Needs Through Scenario Innovation
As public health awareness rises and Generation Z becomes the primary consumer base, the water purification market is evolving towards diversification and multi-scenario applications. Simultaneously, advancements in AI and IoT technologies are driving innovative upgrades in water purification solutions.
Taking a global outlook and centered on user needs, Haier, since entering the water purification sector in 2010, has leveraged its international R&D and smart manufacturing capabilities. Collaborations with top global brands like Beisel, Strauss, GEA, and Toray have empowered Haier to offer comprehensive, intelligent IoT drinking water solutions under its three major water purification brands: Haier, Casarte, and BWT.
Haier Water Purification conducts meticulous user scenario analysis and addresses specific pain points with tailored whole-house water solutions across various home and commercial settings. From bedrooms to offices, Haier’s solutions ensure personalized, 24/7 access to safe, high-quality drinking water.
As consumer demand shifts towards health-centric solutions, Haier is leading the charge by offering mineral-rich, heating and purification integrated systems, and whole-house purification options. Innovations like BWT’s sterilization technology and Casarte’s mineral spring emulation cater to evolving consumer expectations for water quality and health.
By focusing on scenario integration and addressing diverse consumer demands, Haier is accelerating its expansion within the evolving water purification market, positioning itself as a frontrunner in this dynamic industry landscape.
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Exploring New Growth Paths: Innovating Channel Expansion
In light of its technical attributes encompassing both electronic and strong pre-installed properties, the water purification industry is aligning with the “big home” concept, integrating home furnishings, appliances, and furniture. Channel diversification and innovation have emerged as pivotal strategies to capture market opportunities.
In terms of channels, Haier has leveraged LTL logistics and premium services to establish a comprehensive logistics system, ensuring end-to-end excellence. The LTL logistics base caters directly to project customers, offering an extensive resource pool of service providers, online acceptance, and 24-hour rapid response for maintenance needs. Shared inventory, centralized warehouse distribution to project sites, and streamlined payment processes underscore Haier’s commitment to efficiency and customer satisfaction, earning accolades in the market.
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Mastering Tech Advancements Inside-Out
The hallmark of high-quality products lies in advanced intelligent manufacturing technology. With 14 technology centers and 28 collaborative R&D institutions worldwide, Haier collaborates with over 300 cross-disciplinary designers across four continents, harnessing global expertise to fuel innovation in the water purification sector.
Delving deep into product technology, Haier Water Purification has amassed numerous patents and garnered prestigious awards through years of dedication and research.
Haier’s laboratories boast state-of-the-art testing equipment to ensure product safety, encompassing more than 80 sets of testing instruments capable of over 120 testing items. The parts laboratory conducts testing on more than 30 core components across 300 testing items, simulating diverse usage scenarios to ensure product reliability.
Mobilizing productivity, Haier has pioneered digital factories and smart manufacturing, investing 1 billion RMB in two world-class water purification plants. Through digital transformation, Haier has elevated its manufacturing prowess, offering complete scenario solutions and high-quality products supported by intelligent manufacturing capabilities.
Haier’s interconnected factory harnesses domestic and international resources, integrating intelligent production on a 5G-enabled industrial Internet platform, setting global standards with its 100,000-level “Sanheng” smart water purification factory. With a self-made module rate exceeding 90%, Haier’s water purification interconnected factory is an industry leader in innovative research, development, and production standards.
On October 25, 2023, Haier celebrated the rollout of its 1 millionth self-manufactured water purifier, showcasing its production capacity and intelligent manufacturing capabilities. Haier Water Purification has emerged as a market leader, leveraging technology research, smart factories, logistics systems, and service networks to capture new market segments and drive industry innovation. By 2023, Haier Water Network’s estimated revenue will hit 15 billion yuan, solidifying Haier’s position as a top-three player in the water purification market.
With consumers increasingly prioritizing health and quality in their drinking water choices, water purification products have evolved beyond basic daily needs to offer added value. Household water purification applications have expanded horizontally from “drinking purified water” to encompass activities like cooking, washing vegetables and fruits, and daily cleaning, creating new opportunities for consumption upgrades.
In response to the continuous evolution of technology and consumer demands, upgrading and transformation have become imperative in the water purification industry. Brands are focusing on understanding customer needs, market segmentation, and providing differentiated, personalized products and services as fundamental strategies for product development and market operations.
We are excited to witness leading water purification companies like Haier redefine the industry with a fresh perspective. While brands may differ in their future industry directions, they are united in their focus on “health” and “quality,” centering their strategies around user needs, transitioning from single-product layouts to comprehensive whole-house solutions, and enhancing user experiences. We anticipate a diverse and prosperous future for the water purification industry, poised for a new era of innovation and growth.
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Haier’s presence at the 16th Watertech China
June 3-5, Shanghai | National Exhibition and Convention Center (Hongqiao)
Booth number: 5.2H648
As a leading event in the water purification industry, Watertech China serves as a premier platform for domestic and international water purification brands to showcase and exchange business ideas. Major brands are actively expanding their market presence and diversifying their product offerings. Drawing on scientific market insights and scenario analysis, Haier Water Purification (Booth No.: 5.2H648) will participate in the 16th Watertech China at the National Convention and Exhibition Center (Hongqiao) in Shanghai from June 3 to 5. Through product and technological innovation, we aim to drive breakthroughs in the water purification industry.