Price war has led the RO water purifier
market to another extent- lowered price has been proven nightmare to existing
ones. Bonafide Research
In
the battle to capture the consumer, players use a wide range of strategy to
head off; competitors. Increasingly, price is the weapon of choice—and
frequently the skirmishing degenerates into a price war.
Water purifier market is facing a
price war, which is a common thing. But uncommon thing is that, prices are
declining at hefty rate. Price wars can create economically destructive and
psychologically weaken situations that take an extraordinary toll on an
individual, a company, and industry profitability. In this market, prices have
declined mostly due to entry of unorganised players with half of the prices of
existing players. In Indian economic
times, price becomes a much larger factor in purchasing decisions. In a battle
for business, price wars develop and customers can benefit greatly. Price wars
most often strike industries where there is both heavy competition and several
comparable products. Under these conditions, there is a large incentive for a
competitor to cut prices in order to gain a greater share of the market. At
first glance, bringing down costs, mean a superior deal for customers.
Bonafide
Research has stated
that total water purifier market is expected to grow at more than 8% from
2017-18 to 2022-23 in value terms in its research report 'India Water Purifier Market Outlook, 2023'. Total water purifier
market has segmented into organised water purifier and unorganised water
puffier. Both these market is made up of Ro+ water purifier, UV water purifier
and Offline/Gravity based water purifier. RO+ water purifier is combination of
RO + UV, RO + UF, RO + UV + UF+ etc. In volume terms, offline water purifier
has held more than 40% of market share due to its low prices. Organised and unorganised
players present ratio is 60:30 in volume terms which is different in value
terms as there are huge price differences. In organised market RO+ water
purifier is major contributor in value terms and will keep its dominance at end
of the forecast period. Total organised water purifier market is predicted to
grow at CAGR more than 10% from 2017-18 to 2022-23. In unorganised market, RO+
water purifier has more than 90% market share in the year 2011-12.
One can see that there is wide price
gap between organised and unorganised ASP of RO+ water purifier. Moreover, ASP
of total market is falling at fast rate from 2011-12 due to entry of new
entrant specially unorganised and new distribution channel i.e. E-commerce. ASP
of organised RO+ water purifier is around Rs. 12,500 whereas ASP of unorganised
is only around Rs. 5200. In value as well volume terms, RO water purifier
dominates the unorganised market. In case of organised market, RO only
dominates the value terms but not in volume terms in 2016-17. Healthy
competition is good, but overly aggressive price wars can have negative
long-term effects for both consumers and firms. There will always be a place
for a low-cost leader, but other firms can respond to price challenges more
intelligently by differentiating their products and delivering a superior
offering to consumers.
Major
Companies
Major companies that operate into the Water
Purifier product market in India are Eureka Forbes Ltd, Kent RO Systems Limited,
Hindustan Unilever Limited, Tata Chemicals Limited
Livpure
Pvt. Ltd., Panasonic India Pvt. Ltd., LG Electronics India Pvt. Ltd., Blue Star
Limited
Ion Exchange India Ltd., Okaya Power
Pvt Ltd.
Report: India Water Purifier Market Outlook,
2023
Base Year: 2016-17, Estimated Year: 2017-18, Forecast
Year: 2022-23
Pages: 102, Figures: xxx,
Tables: xxx
CONTACT
US
Bonafide Research & Marketing Pvt. Ltd.
Steven Thomas – Sales & Marketing Manager
Telephone: +91-7878231309
Website: http://bonafideresearch.com/
