water purifier market in india by abhinava mishra
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hinavamishra.com
Water Purifiers India Market Scenario By Abhinava Mishra [July, 2012]
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Index
• Overview of India Market
• Competition Mapping
• India tax structure, its implications on pricing structure & Trade margins
• ATL & BTL mapping of competition
• Key Market Insights
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Indian Consumer Market
An Overview of The
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India: Promising Growth Story
$4.6 T GDP (PPP), 2011
6.5% GDP growth rate, 2012
1.2 B Population of India,
2011
3RD Largest Economy of
the World (PPP)
350 M English speaking
population
35% Of the population is
aged under 20 years
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Top 100 Cities in India Cities Share of Population
Top 10 20%
Ahmadabad Bangalore Chennai Coimbatore Delhi
Hyderabad Kolkata Mumbai Pune Surat
Next 20 Top 30 36%
Asansol Bhopal Faridabad Indore Jaipur
Jamshedpur Kancheepuram Kanniyakumari Kanpur Kochi
Lucknow Ludhiana Madurai Nagpur Patna
Salem North 24 Parganas(Urban
areas)
Thane (Urban
Areas)
Thiruvallur
(Urban Areas)
Vadodara
Next 20 Top 50 45%
Amritsar Aurangabad Chandigarh Dhanbad Ghaziabad
Goa Guwahati Haora Hugli Jabalpur
Jalandhar Kolhapur Nashik Rajkot Rangareddi
Thiruvananthapuram Tiruchirappalli Vellore Vijayawada Visakhapatanam
Next 50 Top 100 58%
Agartala Agra Aizawl Ajmer South 24 Parganas
Allahabad Anantapur Bareilly Bhavnagar Bhubaneshwar
Bokaro Cuttack Daman Dehradun Durg-Bhilai
Gandhinagar Gangtok Guntur Gurgaon Gwalior
Imphal Itanagar Jamnagar Jodhpur Kannur
Kavaratti Kohima Kota Kozhikode Mangalore
Meerut Moradabad Mysore Noida Patiala
Pondicherry Port Blair Raipur Ranchi Raurkela
Rupnagar Shillong Shimla Silvassa Solapur
Srinagar Thanjavur Thrissur Udaipur Varanasi
331
Delta Cities – Budding Centers
Gamma Cities – Upcoming Cities
Beta Cities – On the Threshold
Alpha Cities – The Elite Club of 10
All Urban Locations (Mn)
Within these 100 cities, the top 50 account for
•45% of the urban population
•50% of the incomes, savings, expenditures, and assets.
•70% of urban commercial bank deposits and credit
•The top 30 cities account for more than half of all urban credits and deposits.
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Key Drivers Favorable demographics
• Population growth - adding
one Australia every year
• Growing consuming class
• Very Young population • 20% in10-19 yrs
• 45% in 20-49yrs
• Increasing population of
working women
• Growth in organized retail
• India’s e-commerce market is
$8.9Bn
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Water situation in India – Why Purifiers?
7
5% of India’s fresh water resources
available for Municipal use. Rest
goes into agriculture & industries
20% of India’s 240 Mn households have
to travel more than half a KM to
fetch drinking water
170 M People in India do not have
access to clean drinking water
$600 M Cost of lost productivity and
expenditure for medical treatment
due to water-borne diseases.
21% Of all diseases in India are caused
due to drinking of impure water
Sources: World Bank, Census of India & others
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Water Purifier Market
Water Purifier Market
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Key Market Insight Size, Penetration & Share
9
Geography
Penetration Level
All India 1.85%
Delhi 24.59%
Mumbai 14.93%
Tamil Nadu 2.46%
Haryana 2.16%
West Bengal
2.07%
Punjab 1.91%
Karnataka 1.65%
Bihar 0.42%
Water Purifier
Penetration Level
So
urc
e: Fra
nc
is K
an
oi M
ark
et
Re
sea
rch
$560 M Present Market Size (Home +
Large Scale water purification) 25% Current CAGR
$1.23 B Estimated market size
by 2015 7.1 M Sales volume (units) in 2011
So
urc
e: A
SSO
CH
AM
2012
So
urc
e: TV
J R
ese
arc
h 2
011
91
Value ($Mn)
66
47
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10
Water Purifiers: Key Market Insight
Acute shortage of fresh water resources
Lack of Govt. initiatives
Technological advancement
Launches of affordable products
Very low penetration
Rural: Lack of awareness among consumers
Urban: Aware but not very conscious
Inertia to ‘buy’ a natural resource
Less no. of serious players
BOP yet to get the right solution
40
Value ($Mn)
35
6
9
31
Value ($Mn)
9
3
2
2
0.4
49
Value ($Mn)
12
5
0
Key Market Insight Category wise Market Size
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Vo
lum
e
11
Key Market Insight: Evolution
1980’s 1990’s 2000’s 2005 2010
Chlorine
Based
Purifiers
Electric UV water purifiers made popular
by Eureka Forbes Electric RO
water purifiers
made popular
by Kent RO
Non-electric low cost Activated Carbon based
purifiers introduced by Unilever & Tata
Pri
ce
Po
int
High
Low
High
Low
Bottled Water
Key Market Insight Category wise Market
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Water Purifiers: Key Market Insight
Key Success Factors in the current market:
1. Trust through customer education & interaction
The brand must establish direct contact with consumers to educate them
about the functional benefits of the purifier and thereby develop trust
(confidence) for the product & the brand in the consumer’s mind in order to
just get an entry into the consideration set of the consumer.
2. Superefficient filters
India has a diverse geography with the water quality & the type of impurities
changing at every 100 KMs or even less. Filters need to be capable of
removing multiple impurities to cope with this issues.
3. High VFM Indian consumer demands more value for their money compared to
consumers in many other developed as well as developing countries and
therefore brands that can keep the initial product price, the cost of the filter
replacement lower and the longevity of the filter higher will have bigger
chances of winning the market.
Key Success Factors
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Water Purifiers: Key Market Insight
4. After-Sales Service Quality
As most of the models are installed at home, visiting the consumer’s home with a
very short TAT is of utmost importance. Delays & poor service causes major
dissonance and negative WOM
5. Awareness, Visibility & Availability (Distribution)
The brand & product has to be well promoted through ATL & BTL activities to
substantiate the Trust factor. It is also very important to be visible on the shelves of
the retail outlets and to be available in wide variety of outlets.
Key Success Factors
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Water Purifiers: Competition Mapping
Competition Mapping For Water Purifiers in India
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Market Segments & Need Gaps
15
MR
P R
s.
50
0 –
4,9
99
M
RP
Rs.
50
,00
– 2
0,0
00
MR
P >
Rs.
2
0,0
00
M
RP
Rs.
1
00
– 4
,99
Late
nt
ne
ed
fo
r a
po
rta
ble
pu
rifie
r
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Portable Water Purifiers Product Features, Consumer Pricing
PORTABLE WATER PURIFIERS
Brands Life Straw Aquamira Katadyn Seychelle Kent Ion Exchange
Models Straw Bottle Bottle Bottle TapGuard ZeroB Suraksha
MRP $29.95 Rs. 2,800 $31.99 Rs. 2,300 Rs. 349
MOP Rs. 2,800 RS. 2250 Rs. 299
Purpose Rural/ Camping Travel/Sport Travel/Sport Travel/Sport Urban Travel On Tap
Tech Used Mesh, PolYESter, Iodine & Carbon
Porous Plastic Carbon Filter
Electrokinetic Fiberglass pre-
filter and carbon filter
Ionic-Adsorption Micro-Filtration &
activated coconut carbon
Granular Activated Carbon,
Polysulfone Hollow Fiber UF
Membrane Resin Expansion
Filteration stages 4 1 3 1 1 1
Capacity 0 0.65 ltr 0.6 ltr 0.7 ltr 0 0
Pure water Storage 0 0 0 0 0 0
Electricity NA NA NA NA NA NA
Purification
Bacteria, Protozoan,
Particles >0.2micron
Giardia, Cryptosporidium
and other pathogens
Bacteria, Protozoan,
Particles >0.3 micron Bacteria & Virus
Rust, Bacteria, Cyst, Coliform Bacilli, Micro - organisms & Microscopic
impurities Bacteria & Virus
Tap connection NA NA NA NA Direct Direct
Purification life 1000 ltr 380 ltr 100 ltr 380 ltr 1500 ltr 7500 ltr
Certification None NSF/ ANSI
Filter Life Indicator NO NO NO NO NO Yes
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Home Water Purifiers Product Features, Consumer Pricing, Trade Pricing & Schemes
INDOOR WATER PURIFIER
Brands Pureit Pureit Pureit Pureit Pureit Aquagurad Aquagurad TATA TATA Kent Kent Kent Kent Kent
Models Intella Pureit Compact Classic Autofill Marvella Aquasure Amrit Aquasure Xtra Smart Swach
Gold
Optima Gold Gold Plus Crystal Cool Gold
MRP Rs. 900 Rs. 1,200 Rs. 2,200 Rs. 3,200 Rs. 6,900 Rs. 2,250 Rs. 1,490 Rs. 899 Rs. 1,199 Rs. 1,250 Rs. 2,495 Rs. 2,500 Rs. 2,950 Rs. 3,600
MOP Rs. 900 Rs. 1,200 Rs. 2,200 Rs. 3,200 Rs. 6,900 Rs. 2,250 Rs. 1,450 Rs. 850 Rs. 1,100 Rs. 1,200 Rs. 2,200 Rs. 2,400 Rs. 2,900 Rs. 2,900
DP 800 1111 2037 2986 6462 2070 1334
Scheme 45 60 110 160 345 113 73
Dealer NLC 783 1044 1914 2784 6003 1957.5 1261.5
Dealer Margin 13% 13% 13% 13% 13% 13% 13%
Distributor Margin 4.75% 4.75% 4.75% 4.75% 4.75% 4.00% 4.00%
Purpose Home Home Home Home Home Home Home Home Home Home Home Home Home Home
Tech Used
1. Microfiber
Mesh
2. Compact
Carbon Trap
3. Programmed
Chlorine release
4. Polisher
1. Microfiber
Mesh
2. Compact
Carbon Trap
3. Programmed
Chlorine release
4. Polisher
1. Microfiber
Mesh
2. Compact
Carbon Trap
3. Programmed
Chlorine release
4. Polisher
1. Microfiber
Mesh
2. Compact
Carbon Trap
3. Programmed
Chlorine release
4. Polisher
1. Pleated Filter
2. Activated
Carbon Filter
3.Programmed
Chlorine release
4. Polisher
Sediment cum
Carbon Block 4
step filteration
Positive Charge
Technology
Silver
Nanotech
nology
purificatio
n
Silver
Nanotech
nology
purificatio
n
UF Storage
Water
Purifier
Technolog
y
UF Storage
Water
Purifier
Technolog
y
UF Storage
&
Activated
Carbon
Filter
UF Storage
&
Activated
Carbon
Filter
UF Storage
&
Activated
Carbon
Filter
Filteration stages 4 4 4 4 4 4 4
No
Chlorine
No
Chlorine
UF Memb, Nano silver impreg
carbon
UF memb, Sediment,
Activated Carbon, SS
Screen
no chlorine
Capacity 12 14 lit 23 23 20 18 5 18 10 20 20 15 20
Pure water Storage 5 5 9 9 11
Electricity no No No NO NO no no no no no no no no no
Purification Bacteria & Virus Bacteria, viruses & cysts Bacteria, viruses & cysts
Tap connection No
No tap
connection
No tap
connection Direct no no no no no no no
Sensor/ auto off YES YES
Auto store YES
Purification life 1000 lits 2250/1500 lit 2250/1500 lit 2250 lit 750 lit 1500 3000 3000 4000 lits 4000 lits 4000 lits 4000 lits 4000 lits
Certification EPA USA EPA USA EPA USA EPA USA WQA USA WQA USA WQA USA
Jug YES 8 hrs
Autolock YES
Autoshut at end of life YES YES YES YES YES YES
Germ kill life indicator YES YES YES YES YES
Wall mount No No No No YES
Indicator
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Pricing, Duty & Tax Structure
18
Sorry, the content of this slide can not be accessed.
Pls contact the author for any assistance.
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Pricing, Duty & Tax Structure
Sorry, the content of this slide can not be accessed.
Pls contact the author for any assistance.
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ATL & BTL Mapping – Print Ads
20
TATA Swach – Print Ad Eureka Forbes – Print Ads
Pureit – Print Ads
Kent RO – Print Ad
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Kent Water Softner: http://www.youtube.com/watch?v=aI3_1C0rb0U&feature=relmfu Kent Gold: http://www.youtube.com/watch?v=4IQj_lzqhPw&feature=relmfu
Unilever Pureit Marvella: http://www.youtube.com/watch?v=fR-7v3tEa1o&feature=related Unilever Pureit: http://www.youtube.com/watch?v=pm-XXW5Ce6w Unilever Pureit (Rs. 10 Mn Challenge): http://www.youtube.com/watch?v=pA9Rkm_UdCk Aquaguard: http://www.youtube.com/watch?v=IK84xjLTPUM&feature=related Aquasure: http://www.youtube.com/watch?v=A6r5_xZtPHI Whirlpool TVC: http://www.youtube.com/watch?v=uptyMZvy5fs
ATL & BTL Mapping – TVCs
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ATL & BTL Mapping – Activation
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Water Purifiers: Possible Collaborations
… either reach for the Mass Market
• Collaborate with various Govt. departments working on drinking water project under Public Private Partnership (PPP) projects
• Collaborate with various NGOs working on projects funded by International agencies like UNICEF to provide safe drinking water at a subsidized rate
… or reach to the Premium Market
• Collaborate with premium brands in the space of travel & adventure
• Collaborate with various organisations that promote Environmentally friendly products / services.
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Water Purifiers: Competition Mapping
Thank You