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Marketing Strategy of Air Purifier in China's Market

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by

Yan XIANG

on 9 December 2014

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Transcript of Marketing Strategy of Air Purifier in China's Market

Marketing Potential
Marketing Potential
The lifespan of air purifier :

The most important technology of an air purifier is it’s filter, so the filter’s lifespan actually represents air purifier’s lifespan.
Market Competition
Like all the household appliances, air purifier has a huge profit margin, more than 50% profit percentage.

Because that the manufactures of air purifier all over the world has realized the huge potential of Chinese market so there must be huge competition, especially for new brands and products...
By the end of 2012, there were a total of 223 air purifier producers or brand owners in the China’s market. And in 2013, Our domestic brands shared only 20% of the market. The foreign brand occupied 80% of our market.

Different brands of Air Purifier in China
Sales Mode
However, the fonctions and operating pricinples of all air purifiers are almost the same, besides the brand factor, the key for winning for the sales will be the sales mode.

As for marketing , advertisement is probably one of the most important element, let’s first watch some advertisements of air purifiers, I took Sharps’ as an example :
Advertisement of SHARP

We can see from these advertisements that they are all some kind of commercial ,However, the air pollution should be a public issues for all human people, so we can make a public service advertisements not only for the sales but also for calling all humans to protect our environment.

We put this advertisement not only on TV, Internet, but specially in those public place where there are a lot of people, for example on the bus, metro…

And next step we should do some programs for public good, as for our main products are household models, so for attracting our target customers we should first establish our image so that we can spread the product into every family.
1) Market Potential
→ Microeconomy ( environnement, political, technology )
→ Macro-economy ( manufactures / suppliers; consommateurs)
→ Lifespan of product
→ Air purifier industry

2) Marketing Competition
→ Manufactures and brands of air purifiers in China
→ 3 types of structures of air purifiers

3) Sales Mode
→ Public service advertising
→ Promotions for entering market
→ After-sales service

Marketing Strategy
Air pollution is a severe problem in China – one that we ignore at the risk of our health and our economy. Smog hangs heavy over Beijing, Shanghai and Hong Kong, where children grow up with asthma and other respiratory illnesses.

Of particular concern is PM2.5. In Cities like Beijing, Shanghai, PM2.5 concentration levels in these cities exceed World Heath Organisation (WHO) air quality guidelines. This means higher health risks to the cardiovascular system, cerebrovascular system and an increase in the probability of cancer and premature death.

Market Potential-Environment
Market Potential-Policy
Chinese government and some world organizations are paying more and more attention to China's air pollution problems which give also market potential to air purifiers.On 29 February this year, China's State Council approved its first national environmental standard for limiting the amount of fine particles in air that measure less than 2.5 micrometres in diameter. It requires the country to implement the World Health Organization's recommended interim target of an annual average of 35micrograms per cubic metre (μgm−3) for such particles by the end of 2015.
Market Potential-technology
Innovation removes pollutants by electrostatic and catalytic processes

Chinese researchers have developed a new technologies to clean up indoor air pollution that avoids secondary pollution that existing air purification products in the market can create if used improperly.

Also there are more and more air purifiers manufactures in China among which most of them are in southeast of China.


3 main types of structures of air purifiers in China's market
Market Potential-consummers
Market Potential-air purifier industry
Because of the high level of air pollution in China, the total sales of purifiers in China reach 3.5 billion Yuan in 2013.
However, Compared with the developed countries, China's air purifier industry starts late; Chinese household air purifier ownership rate is under 1% at present, far below the rate of America (17%) and Japan (28%).

Market Potential-lifespan of product
To sum up, China’s air purifier market has a huge potential.
Market Competition
Sales Mode
Sales Mode-advertising
Sales Mode-promotion for entering market
Sales Mode-target market
We can take one of the biggest and most polluted city as an example (Beijing)

First, we offer some air purifiers for free for those public institutions, for making our potential clients experience our products, for example, we offer for hospitals, schools, metro stations, libraries and so on…This act combine with that piece of advertisement, I think it will get a nice public praise for our product.

Why we choose this institutions for offering our product, for example (schools) :
Sales Mode-after sale service
Marketing begins before the appearance of a product and ends with after-sale service which brings us the customer satisfaction and valued added services.

This part is very poor in China’s current market which including: lack of service network stations, after sale visits, product knowledge and using of universal; high maintenance costs ; ect…

We promise our clients 2 years of guarantees for each product : within 2 years, if any quality problems happend, we change a new one for client for free or we offer door to door service for repairing.

Besides, for improving those poor after sale service situation, we establish service network stations in each city and offer clients product knowledges as well as after sale visits for free.

Bibliography
Jennifer Duggan(2014), « China's pollution levels spark boom in sale of air purifiers and face masks » http://www.theguardian.com/environment/2014/mar/07/china-pollution-smog-air-purifiers-masks <viewed 25 Nov 2014>

Daxue Consulting Beijing(2014), «Air Purifiers Market in China»
http://daxueconsulting.com/air-purifiers-market-in-china/<viewed 29 Nov 2014>

Image on US Air Purifier website : «Average Filter Life and Maintenance Timetable » http://www.usairpurifiers.com/filter-maintenance.html <viewed 29 Nov 2014>

Video on Youtube Published on 27 Mar,2014: «China Air Purifiers Market»https://www.youtube.com/watch?v=yG1vsKMBP3w<viewed 01 Dec 2014>

Video on Youtube Published on Aug 26, 2013: «SHARP-Air Purifier» https://www.youtube.com/watch?v=UOp4wMH9e_0<viewed 01 Dec 2014>

Slide on Slideshare website: «Why Air Purifiers Are Important To Schools »http://www.slideshare.net/simonbajaykrishnan/why-air-purifiers-are-important-to-schools <viewed 02 Dec 2014>

Thesis of PIM LTD: «China’s Home Air Purifiers Market Research» http://www.pimchina.com/wp-content/uploads/2013/08/China-Home-Air-Purifiers-Market-PIM-201404.pdf <viewed 02 Dec 2014>

Article on Greenpeace website: «Reduce Air Pollution»http://www.greenpeace.org/eastasia/campaigns/air-pollution/<viewed 03 Dec 2014>

Article on Nature website: «Policy: Cleaning China's air»http://www.nature.com/nature/journal/v484/n7393/full/484161a.html<viewed 03 Dec 2014>

Article on ChinaDaily website: «University unveils new air purifier technology»http://usa.chinadaily.com.cn/china/2014-01/07/content_17219196.htm<viewed 04 Dec 2014>

Image of google : « After Sale Service » http://www.aeq.eu/store/sites/4f0b6c69570d9925120000fe/pages/4f0b7373570d992512000347/files/AFTERSALESSERVICEAA.jpg<viewed 8 Dec 2014>

Marketing Strategy of Air Purifier in China's Market
Sales Mode
Sales Mode
Bibliography
Brand awareness of air purifiers in China - the third quarter 2014
Full transcript