The document provides an overview of the water purifier market in India. It discusses key insights about the market including its current size of $560 million and projected growth to $1.23 billion by 2015. The top factors driving growth are India's growing population and consuming class as well as low penetration levels of water purifiers currently. The document outlines the country's water situation and need for purifiers. It also analyzes the market by geography, product type (portable vs. home), competition, pricing structures, and marketing activities of leading brands. In summary, the water purifier market in India is poised for strong growth given low existing penetration rates and favorable demographic trends.

1. Water
Purifiers
India Market Scenario
By Abhinava Mishra [July, 2012]
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2. 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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3. An Overview of
The
Indian
Consumer
Market
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4. India: Promising Growth Story
3RD
$4.6 T
Largest Economy of
the World (PPP)
GDP (PPP), 2011
6.5%
GDP growth rate, 2012
1.2 B
Population of India,
2011
350 M
35%
English speaking
population
Of the population is
aged under 20 years
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5. Top 100 Cities in India
Cities Share of Population
Alpha Cities – The Elite Club of 10
Ahmadabad
Hyderabad
Next 20
Asansol
Jamshedpur
Lucknow
Salem
Bangalore
Kolkata
Chennai
Mumbai
Coimbatore
Pune
Top 10
Top 30
Faridabad
Kanniyakumari
Madurai
Thane (Urban
Areas)
Indore
Kanpur
Nagpur
Thiruvallur
(Urban Areas)
Aurangabad
Guwahati
Kolhapur
Tiruchirappalli
Next 50
Agartala
Allahabad
Bokaro
Gandhinagar
Imphal
Kavaratti
Meerut
Pondicherry
Rupnagar
Srinagar
Agra
Anantapur
Cuttack
Gangtok
Itanagar
Kohima
Moradabad
Port Blair
Shillong
Thanjavur
Chandigarh
Haora
Nashik
Vellore
Dhanbad
Hugli
Rajkot
Vijayawada
Top 100
Ajmer
Bhavnagar
Dehradun
Gurgaon
Jodhpur
Kozhikode
Noida
Ranchi
Silvassa
Udaipur
58%
Ghaziabad
Jabalpur
Rangareddi
Visakhapatanam
Delta Cities – Budding Centers
Aizawl
Bareilly
Daman
Guntur
Jamnagar
Kota
Mysore
Raipur
Shimla
Thrissur
45%
Jaipur
Kochi
Patna
Vadodara
Gamma Cities – Upcoming Cities
Next 20
Amritsar
Goa
Jalandhar
Thiruvananthapuram
36%
Top 50
Beta Cities – On the Threshold
Bhopal
Kancheepuram
Ludhiana
North 24 Parganas(Urban
areas)
20%
Delhi
Surat
South 24 Parganas
Bhubaneshwar
Durg-Bhilai
Gwalior
Kannur
Mangalore
Patiala
Raurkela
Solapur
Varanasi
All Urban Locations (Mn)
331
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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6. 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
•
Growth in organized retail
•
India’s e-commerce market is
$8.9Bn
working women
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7. Water situation in India – Why Purifiers?
of India’s fresh water resources
available for Municipal use. Rest
goes into agriculture & industries
5%
of India’s 240 Mn households have
to travel more than half a KM to
fetch drinking water
20%
170 M
Of all diseases in India are caused
due to drinking of impure water
21%
$600 M
7
People in India do not have
access to clean drinking water
Cost of lost productivity and
expenditure for medical treatment
due to water-borne diseases.
Sources: World Bank, Census of India & others
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8. Water Purifier Market
Water
Purifier
Market
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9. Key Market Insight
$560 M
7.1 M
25%
$1.23 B
Present Market Size (Home +
Large Scale water purification)
Sales volume (units) in 2011
Current CAGR
Estimated market size
by 2015
9
Geography
Penetratio
n Level
Source: TVJ Research 2011
Source: Francis Kanoi Market Research
Water Purifier
Penetration Level
Source: ASSOCHAM 2012
Size, Penetration & Share
All India
1.85%
Delhi
24.59%
Mumbai
14.93%
Tamil Nadu
2.46%
Haryana
2.16%
West
Bengal
2.07%
Punjab
1.91%
66
Karnataka
1.65%
47
Bihar
0.42%
Value ($Mn)
91
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10. Water Purifiers: Key Market Insight
Key Market Insight
Category wise Market Size
Value ($Mn)
Value ($Mn)
40
35
6
9
Acute shortage of fresh water resources
Launches of affordable products
Very low penetration
Technological advancement
Lack of Govt. initiatives 10
Value ($Mn)
31
49
9
12
3
2
2
0.4
5
0
Rural: Lack of awareness among consumers
Urban: Aware but not very conscious
Inertia to ‘buy’ a natural resource
BOP yet to get the right solution
Less no. of serious players
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11. Key Market Insight
Key Market Insight: Evolution
Category wise Market
Price Point
High
Low
Volume
High
Low
1980’s
1990’s
2000’s
2005
2010
Bottled Water
Chlorine
Based
Purifiers
Electric UV
water purifiers
made popular
by Eureka
Forbes
11
Non-electric low
cost Activated
Carbon based
purifiers
introduced by
Unilever & Tata
Electric RO
water purifiers
made popular
by Kent RO
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12. Water Purifiers: Key Market Insight
Key Success Factors
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.
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13. Water Purifiers: Key Market Insight
Key Success Factors
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.
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14. Competition
Mappingin India
For Water Purifiers
Water Purifiers:
Competition Mapping
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15. 15
MRP Rs.
100 – 4,99
MRP Rs.
500 – 4,999
Latent need for a
portable purifier
MRP Rs.
50,00 – 20,000
MRP > Rs.
20,000
Market Segments & Need Gaps
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16. Portable Water Purifiers
Product Features, Consumer Pricing
PORTABLE WATER PURIFIERS
Brands
Models
MRP
MOP
Purpose
Tech Used
Filteration stages
Capacity
Pure water Storage
Electricity
Purification
Tap connection
Purification life
Certification
Filter Life Indicator
16
Life Straw
Straw
Aquamira
Bottle
$29.95
Katadyn
Bottle
Rs. 2,800
Rs. 2,800
Travel/Sport
Seychelle
Bottle
$31.99
Kent
TapGuard
Rs. 2,300
RS. 2250
Rural/ Camping
Travel/Sport
Travel/Sport
Urban Travel
Granular
Activated
Electrokinetic Ionic-Adsorption
Carbon,
Fiberglass pre- Micro-Filtration &
Polysulfone
Mesh, PolYESter, Porous Plastic filter and carbon
activated
Hollow Fiber UF
Iodine & Carbon Carbon Filter
filter
coconut carbon
Membrane
4
1
3
1
1
0
0.65 ltr
0.6 ltr
0.7 ltr
0
0
0
0
0
0
NA
NA
NA
NA
NA
Rust, Bacteria,
Cyst, Coliform
Bacteria,
Giardia,
Bacteria,
Bacilli, Micro Protozoan,
Cryptosporidium
Protozoan,
organisms &
Particles
and other
Particles >0.3
Microscopic
>0.2micron
pathogens
micron
Bacteria & Virus
impurities
NA
NA
NA
NA
Direct
1000 ltr
380 ltr
100 ltr
380 ltr
1500 ltr
None
NSF/ ANSI
NO
NO
NO
NO
NO
Ion Exchange
ZeroB Suraksha
Rs. 349
Rs. 299
On Tap
Resin Expansion
1
0
0
NA
Bacteria & Virus
Direct
7500 ltr
Yes
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17. 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
800
1111
2037
2986
6462
2070
1334
Home
Home
Home
Home
Home
Home
Home
DP
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
1. Microfiber
1. Microfiber
1. Microfiber
1. Microfiber
Mesh
Mesh
Mesh
Mesh
1. Pleated Filter
2. Compact
2. Compact
2. Compact
2. Compact
2. Activated
Carbon Trap
Carbon Trap
Carbon Trap
Carbon Trap
Carbon Filter
3. Programmed 3. Programmed 3. Programmed 3. Programmed 3.Programmed Sediment cum
Chlorine release Chlorine release Chlorine release Chlorine release Chlorine release Carbon Block 4
4. Polisher
4. Polisher
4. Polisher
4. Polisher
4. Polisher
step filteration
Tech Used
4
No
Chlorine
No
Chlorine
23
20
18
5
18
10
20
20
15
20
9
11
no
no
no
no
no
no
no
no
4
4
4
4
Capacity
12
14 lit
23
Pure water Storage
5
5
9
no
No
No
NO
Purification
4
NO
Bacteria & Virus
Tap connection
No
No tap
connection
No tap
connection
Sensor/ auto off
no
UF Memb, Nano silver impreg
carbon
UF memb, Sediment,
Activated Carbon, SS
Screen
no chlorine
4
Filteration stages
Electricity
Silver
Silver
UF Storage UF Storage UF Storage UF Storage UF Storage
Nanotech Nanotech Water
Water
&
&
&
nology
nology
Purifier
Purifier Activated Activated Activated
Positive Charge purificatio purificatio Technolog Technolog Carbon
Carbon
Carbon
Technology
n
n
y
y
Filter
Filter
Filter
Bacteria, viruses & cysts
Direct
no
YES
no
750 lit
1500
no
no
no
no
no
4000 lits
4000 lits
4000 lits
4000 lits
4000 lits
YES
2250 lit
Bacteria, viruses & cysts
Auto store
YES
Purification life
Certification
1000 lits
EPA USA
2250/1500 lit
2250/1500 lit
EPA USA
EPA USA
EPA USA
3000
3000
WQA USA WQA USA WQA USA
Jug
YES
Autolock
YES
Autoshut at end of life
YES
YES
YES
YES
YES
Germ kill life indicator
YES
YES
YES
YES
YES
Wall mount
No
No
No
No
YES
Indicator
17
8 hrs
YES
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18. Pricing, Duty & Tax Structure
Sorry, the content of this slide can not be accessed.
Pls contact the author for any assistance.
18
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19. Pricing, Duty & Tax Structure
Sorry, the content of this slide can not be accessed.
Pls contact the author for any assistance.
19
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20. ATL & BTL Mapping – Print Ads
Eureka Forbes – Print Ads
TATA Swach – Print Ad
Pureit – Print Ads
Kent RO – Print Ad
20
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21. ATL & BTL Mapping – TVCs
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
21
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22. ATL & BTL Mapping – Activation
22
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23. Water Purifiers: Possible Collaborations
•
•
23
… 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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24. Thank
You
Water Purifiers:
Competition Mapping
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