Affordable rental system, Increasing income, increasing standard of living and health consciousness to enhance water purifier sales in South Korea
In the past, home appliances have been all about convenience regarding quickly freezing foods or washing clothes. Now, the paradigm is shifting towards wellness, as increasing number of people are putting wellness and safety on the front, rather than convenience. Gradually, people have started understanding the influence of drinking safe and pure water on the quality of human life, thereby which offers great market potential for water purification products. In South Korea, most of the water purifier sales are made through rental system.
Coway was the first company to introduce the concept of water purifiers on rental which has been highly greeted by South Korean consumers, which in turn, has helped Coway to make strong foothold in South Korean water purifier market. The second most powerful player in South Korean water purifier market is Chugho Nais which has developed unique products such as water purifier with a built-in ice maker and wine cellar, hybrid typed product equipped with humidifier and air purifier. The product innovation by Chungho Nais is driving the sales for the company which is followed by Tong Yang Magic, a well know home appliances company in South Korea. It is being estimated that market share in South Korean water purifier industry is expected to witness some drastic changes where Coway would be leading with 42.20% market share by 2017 followed by Chugho Nais with 16.1% and Tong Yang Magic with 8.9% market revenues.
According to recently published report by TechSci Research, “South Korea Water Purifier Market Forecast & Opportunities, 2017” South Korean organized water purifier market is expected to grow with CAGR of around 16% to reach close to US$3.8 Billion by 2017. The drivers of the industry are affordable rental system, increasing disposable income and increasing health consciousness among South Korean consumers. The revise osmosis based Water purifiers have been leading the market with more than 1 Million units 2011. The most popular and successful sales channel for water purifiers in South Korea is through reseller & direct sales which, together accounted for 68% of the total South Korean water purifier sales in 2011.
According to Karan Chechi, Research Director with TechSci Research, “Average selling price of water purifiers in South Korea are extremely high when compared with other emerging economies such as Brazil, India & China primarily due to imports. The market is at maturity stage in industry life cycle. The continuous product innovation and decreasing prices would act as a key for future growth.”
“South Korea Water Purifier Market Forecast & Opportunities, 2017” gives a detailed unbiased and unprejudiced overview on the water purifier market in South Korea. This report would help readers to identify the on-going trends in the industry as well as anticipated growth in the coming years due to changing industry dynamics. The report will help industry consultants, water purifier manufacturers and other stakeholders to align their market-centric strategies according to the latest trends.