brand competition and consumer preference of the chinese air purifier market

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Document Code: BDRPT15112302 Publication Date: November 2015 Check out MIC on the Internet! http://mic.iii.org.tw/english BRAND COMPETITION AND CONSUMER PREFERENCE OF THE CHINESE AIR PURIFIER MARKET by MIC Abstract Using big data analytics, this research covers all top air purifier brands in China with following analysis dimensions: brand ranking by the number of items available on online stores, ranking by air purifier sales, number of times online users mention about a particular air purifier brand, brand preferences, factors affecting purchase, as well as online shoppers' comments and user analysis. All those dimensions help build a massive social media database which can more accurately reflect consumer needs in China. Big Data Analytics

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Document Code: BDRPT15112302

Publication Date: November 2015

Check out MIC on the Internet!

http://mic.iii.org.tw/english

BRAND COMPETITION AND CONSUMER PREFERENCE OF THE CHINESE AIR PURIFIER MARKET

by MIC

Abstract

Using big data analytics, this research covers all top air purifier brands in China

with following analysis dimensions: brand ranking by the number of items available

on online stores, ranking by air purifier sales, number of times online users mention

about a particular air purifier brand, brand preferences, factors affecting purchase,

as well as online shoppers' comments and user analysis. All those dimensions help

build a massive social media database which can more accurately reflect consumer

needs in China.

Big Data Analytics

Brand Competition and Consumer Preference of the Chinese Air Purifier Market November 2015

© 2015 Market Intelligence & Consulting Institute

BDRPT15112302 1

TABLE OF CONTENT

1. Executive summary 4

1.1 Product Sales 4

1.2 Brand Position 4

1.3 Brand Awareness 4

1.4 User Analysis 4

2. Research Objective 5

3. Product Sales 6

4. Brand Position 8

5. Brand Awareness 10

5.1 Mi Air Purifier Reviews 10

5.2 TCL TKJ-F220B Reviews 12

5.3 Changhong CKJ-B160F Reviews 13

5.4 TCL TKJ-F220A Reviews 14

5.5 Lemai KX-35 Reviews 15

6. User Analysis 16

6.1 Xiaomi 16

6.2 TCL 17

6.3 Sharp 18

Conclusion 19

Brand Competition Analysis 19

Consumer Preference Analysis 20

Appendix 21

Glossary of Terms 21

List of Companies 22

Brand Competition and Consumer Preference of the Chinese Air Purifier Market November 2015

© 2015 Market Intelligence & Consulting Institute

BDRPT15112302 2

LIST OF FIGURES

Figure 1: Data Sources and Collection Methods 5

Figure 2: Brand Ranking by Number of Items Available on Online Stores 6

Figure 3: Sales Volume Ranking by Air Purifier Model 6

Figure 4: Sales Volume Ranking by Chinese Air Purifier Model 7

Figure 5: Sales Volume Ranking by Foreign Air Purifier Model 7

Figure 6: Online Visibility Ranking by Air Purifier Brand 8

Figure 7: Sentiment Ranking by Air Purifier Brand 9

Figure 8: Factors Affecting Purchase of Top 5 Air Purifier Models 10

Figure 9: Factors Affecting Purchase of Best Seller: Mi Air Purifier 11

Figure 10: Factors Affecting Purchase of 2nd Best Seller: TCL TKJ-F220B 12

Figure 11: Factors Affecting Purchase of 3rd Best Seller: Changhong CKJ-B160F13

Figure 12: Factors Affecting Purchase of 4th Best Seller: TCL TKJ-F220A 14

Figure 13: Factors Affecting Purchase of 5th Best Seller: Lemai KX-35 15

Figure 14: Xiaomi Air Purifier User Distribution by Gender & Age 16

Figure 15: Xiaomi Air Purifier User Distribution by Region 16

Figure 16: TCL Air Purifier User Distribution by Gender & Age 17

Figure 17: TCL Air Purifier User Distribution by Region 17

Figure 18: Sharp Air Purifier User Distribution by Gender & Age 18

Figure 19: Sharp Air Purifier User Distribution by Region 18

Brand Competition and Consumer Preference of the Chinese Air Purifier Market November 2015

© 2015 Market Intelligence & Consulting Institute

BDRPT15112302 3

LIST OF TABLES

Table 1: Brand Competition Analysis 19

Brand Competition and Consumer Preference of the Chinese Air Purifier Market November 2015

© 2015 Market Intelligence & Consulting Institute

BDRPT15112302 4

1. EXECUTIVE SUMMARY

1.1 Product Sales

Of all air purifiers sold on Tmall and JD during 15 May 2015 to 15 August 2015, the

top 5 brands were Yadu, Philips, Sharp, TCL, and Panasonic. On Tmall, the top 5

air purifiers in terms of overall sales were Xiaomi Mi Air Purifier, TCL TKJ-F220B,

Changhong CKJ-B160F, TCL TKJ-F220A, and Lemai KX-35.

1.2 Brand Position

Chinese brand Xiaomi, which has higher brand awareness and sentiment rating, is

regarded as a mainstay brand with high reviews from Chinese Internet users while

foreign brand Sharp fell into the category of niche brands with high reviews.

1.3 Brand Awareness

For air purifiers, Chinese Internet users were more concerned about noise level,

followed by C/P (Cost/Performance) ratio and appearance. For the bestseller Mi Air

Purifier, online users cared more about noise level, followed by C/P ratio and odor

removal.

1.4 User Analysis

The majority of air purifier shoppers in China were men aged between 25 and 29.

As for foreign brands, the age bracket of buyers was 25 to 34. Most of them live in

Zhejiang, Guangdong, Jiangsu, and Shanghai.

Brand Competition and Consumer Preference of the Chinese Air Purifier Market November 2015

© 2015 Market Intelligence & Consulting Institute

BDRPT15112302 5

2. RESEARCH OBJECTIVE Consumer preferences are analyzed using big data analytics in lieu of conventional

consumer analytics. The major problem with conventional approaches is that the

data sources are rather limited, and consumers' feedbacks are acquired indirectly

via market surveys (phone or online surveys). Using big data analytics, we can

conduct keyword searches on social media and e-commerce platforms, collecting

data on a regular basis and producing valuable information about consumers with

the huge volume of data.

Figure 1: Data Sources and Collection Methods

Note 1: This report summarizes data collected from Sina Weibo, Tmall, and JD; citation data must

be used with care.

Note 2: Sina Weibo is the most influential social network platform in China, with over 200 million

monthly active users in the past few months.

Note 3: Tmall and JD are the top two B2C platforms in China, with combined market share of over

80%.

Source: MIC, November 2015

Brand Competition and Consumer Preference of the Chinese Air Purifier Market November 2015

© 2015 Market Intelligence & Consulting Institute

BDRPT15112302 6

3. PRODUCT SALES Figure 2: Brand Ranking by Number of Items Available on Online Stores

480 479453

409

347

145125

48 39 29 24 21

0

100

200

300

400

500

600

Source: Tmall and JD, compiled by MIC, November 2015

Figure 3: Sales Volume Ranking by Air Purifier Model

5,257 5,124

3,915

1,938 1,670

1,450 1,441 1,350 1,183 1,160

-

1,000

2,000

3,000

4,000

5,000

6,000

Source: Tmall, compiled by MIC, November 2015

Units

Units

Brand Competition and Consumer Preference of the Chinese Air Purifier Market November 2015

© 2015 Market Intelligence & Consulting Institute

BDRPT15112302 7

Figure 4: Sales Volume Ranking by Chinese Air Purifier Model

5,257 5,124

3,915

1,938 1,670

1,450 1,441 1,350 1,183 1,160

-

1,000

2,000

3,000

4,000

5,000

6,000

Source: Tmall, compiled by MIC, November 2015

Figure 5: Sales Volume Ranking by Foreign Air Purifier Model

937

722674

618 611 605552 543

503

405 399

0

300

600

900

1200

Source: Tmall, compiled by MIC, November 2015

Units

Units

Brand Competition and Consumer Preference of the Chinese Air Purifier Market November 2015

© 2015 Market Intelligence & Consulting Institute

BDRPT15112302 8

4. BRAND POSITION

Figure 6: Online Visibility Ranking by Air Purifier Brand

338,758

685 535 322 322 164 -

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Note 1: Online visibility ranking refers to the number of times online users mention a specific air

purifier brand on the social media platform

Note 2: Xiaomi's online advertising content is also included, accounting for 55% of the posts

Source: Sina Weibo, compiled by MIC, November 2015

Unit: Posts

Brand Competition and Consumer Preference of the Chinese Air Purifier Market November 2015

© 2015 Market Intelligence & Consulting Institute

BDRPT15112302 9

Figure 7: Sentiment Ranking by Air Purifier Brand

0.0

0.5

1.0

- 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

- 200 400 600 800

Note: This mapping provides cross-analysis between the number of times mentioned online and

net sentiment rate of a brand; number of times mentioned online refer to the number of times

Internet users mentioned a specific brand; Net Sentiment Rate (NSR) = (Positive Posts – Negative

Posts)/ (Positive Posts + Negative Posts)

Source: Sina Weibo, compiled by MIC, November 2015

Niche Products with High Reviews

Mainstay Products with High Reviews

Niche Products with Average Reviews

Mainstay Products with Average Reviews

Number of Times Mentioned Online

Net S

entim

ent R

ate

Brand Competition and Consumer Preference of the Chinese Air Purifier Market November 2015

© 2015 Market Intelligence & Consulting Institute

BDRPT15112302 10

5. BRAND AWARENESS

Figure 8: Factors Affecting Purchase of Top 5 Air Purifier Models

0.5

1.0

Xiaomi MiAir Purifier

TCL TKJ-F220B

ChanghongCKJ-B160F

TCL TKJ-F220A

Lemai KX-35

Note: This mapping provides cross-analysis between the number of times mentioned online and

net sentiment rate of a brand; number of times mentioned online refer to the number of times

Internet users mentioned a specific brand; Net Sentiment Rate (NSR) = (Positive Posts – Negative

Posts)/ (Positive Posts + Negative Posts)

Source: Tmall and JD, compiled by MIC, November 2015

5.1 Mi Air Purifier Reviews

Review 1: For a light sleeper like me, its noise even in the sleep mode is noticeable.

What's more, when you turn it off, the filter keeps running at the lowest fan speed,

continuing to make a faint noise. You just have to unplug it to get completely silent.

Review 2: Overall, it is good, considering the stylish design and easy operation,

though I'm not sure how effective it can be. Anyway, the C/P ratio is great.

9,197 Posts Mentioned Online

Net S

entim

ent R

ate

Operational Readiness

Model

Filter Effectiveness

C/P Ratio Noise Level Workmanship

Odor Removal Appearance

Brand Competition and Consumer Preference of the Chinese Air Purifier Market November 2015

© 2015 Market Intelligence & Consulting Institute

BDRPT15112302 11

Review 3: Product delivery was fast. However, I could smell the pickle-like odor of

formaldehyde from time to time in my home although the sensor showed the air

quality was good.

Review 4: It has great filtering function. Its noise goes slightly louder when running

at high fan speed. All in all, the noise level is acceptable under normal use.

Review 5: It looks elegant and superior and has smart Wi-Fi connectivity. The

downside is that the air quality sensor is not sensitive enough to detect indoor bad

odors. When running at the highest fan speed, the purifier makes loud noises.

Review 6: Not sure about its effectiveness since I don't have adequate testing

equipment at hand. Still, the product has good workmanship.

Figure 9: Factors Affecting Purchase of Best Seller: Mi Air Purifier

7.35%

8.82%

9.02%

12.47%

13.55%

37.02%

0% 10% 20% 30% 40%

Workmanship

Appearance

FilterEffectiveness

OdorRemoval

C/P Ratio

Noise Level

Xiaomi Mi Air Purifier

Source: Tmall, compiled by MIC, November 2015

Brand Competition and Consumer Preference of the Chinese Air Purifier Market November 2015

© 2015 Market Intelligence & Consulting Institute

BDRPT15112302 12

5.2 TCL TKJ-F220B Reviews

Review 1: I bought it because my home had strong chemical odors after the recent

remodeling. I am really satisfied with its performance. Besides a beautiful design, it

only makes small noises in operation. The filtering system is fantastic.

Review 2: The vase-shaped design has a touch of modern aesthetics. That's really

worth praising. Aside from its appearance and workmanship, the filter works well.

Review 3: After using it for a while, I could feel that the strong odors with the new

furniture had been removed. The air became fresh and clean.

Review 4: It has good product quality and is easy to use. It's quiet and effective.

TCL is a trustworthy brand.

Review 5: It's very useful and nice-looking. The sensor works perfectly. No more

worries about unpleasant indoor odors.

Figure 10: Factors Affecting Purchase of 2nd Best Seller: TCL TKJ-F220B

8.61%

8.90%

9.90%

12.28%

22.84%

37.49%

0% 10% 20% 30% 40%

SensorSensibility

C/P Ratio

Quietness

FilterEffectiveness

Appearance

Noise Level

TCL TKJ-F220B

Source: Tmall, compiled by MIC, November 2015

Brand Competition and Consumer Preference of the Chinese Air Purifier Market November 2015

© 2015 Market Intelligence & Consulting Institute

BDRPT15112302 13

5.3 Changhong CKJ-B160F Reviews

Review 1: It has great filtration capabilities, low noise level, and a beautiful design.

Review 2: Excellent C/P ratio. Many of my friends have bought this model. To my

surprise, it makes a louder noise when running at the highest fan speed. Other

aspects are okay. The filtration is effective with numerous control functions.

Review 3: Good product. The noise is smaller than I expected. The delicate

workmanship is worth the price.

Review 4: It has a beautiful design and easy operation. You can hardly hear the

noise when it's running. The indoor air quality has improved significantly.

Review 5: The stylish design makes it easy to fit into my home. After using it for

two days, I'd say the greatest thing about it is being super quiet.

Review 6: Nice design and workmanship. It only makes small noises. It's so

effective that my home has significantly less odors since I used it.

Figure 11: Factors Affecting Purchase of 3rd Best Seller: Changhong

CKJ-B160F

9.33%

9.53%

12.02%

16.48%

23.42%

29.22%

0% 10% 20% 30% 40%

Workmanship

Model

Appearance

Noise Level

C/P Ratio

FilterEffectiveness

Changhong CKJ-B160F

Source: Tmall, compiled by MIC, November 2015

Brand Competition and Consumer Preference of the Chinese Air Purifier Market November 2015

© 2015 Market Intelligence & Consulting Institute

BDRPT15112302 14

5.4 TCL TKJ-F220A Reviews

Review 1: Great quality and workmanship, with a gorgeous design and effective

filtering system. The air in my home has become fresher. It has an affordable price.

I plan to buy another set in the future.

Review 2: The product was handled with care. Not a single scratch on the package.

The compact product is nice-looking and quiet. At beginning, the filter's indicator

light was green. It turned into blue before long, meaning the air has been cleaned. It

offers a 3-stage filtering system.

Review 3: It looks elegant. It can move a lot of air and effectively eliminate odors.

Review 4: A good-looking and useful product. The air quality sensor is sensitive. I

don't have to worry about indoor odors anymore.

Review 5: I like it—the style, workmanship, and everything. TCL is fantastic! The

indoor air quality has been greatly improved.

Review 6: This model is good, given its small noises and high C/P ratio. I really

recommend it.

Figure 12: Factors Affecting Purchase of 4th Best Seller: TCL TKJ-F220A

9.66%

10.42%

11.27%

14.89%

18.84%

34.92%

0% 10% 20% 30% 40%

C/P Ratio

Workmanship

Model

Appearance

Noise Level

FilterEffectiveness

TCL TKJ-F220A

Source: Tmall, compiled by MIC, November 2015

Brand Competition and Consumer Preference of the Chinese Air Purifier Market November 2015

© 2015 Market Intelligence & Consulting Institute

BDRPT15112302 15

5.5 Lemai KX-35 Reviews

Review 1: It has amazing filtration capabilities without making much noise. The air

quality has been improved. By the way, the appearance design is great.

Review 2: It is a quiet purifier. The compact size makes it easy to put at home. It's

very useful and not expensive. The air in my home really becomes fresher.

Review 3: Good-looking design. As I've just done a home remodeling, this product

is pretty useful. It's a worthy investment for the health of your family.

Review 4: I love it. The C/P ratio is superb. It's such a good product.

Review 5: It feels high-end and top of the line. The price is affordable. Overall, it is

a great buy. I am so glad I bought it.

Review 7: A beautiful product with good filtration capabilities. I'm so satisfied.

Figure 13: Factors Affecting Purchase of 5th Best Seller: Lemai KX-35

8.39%

9.83%

10.97%

13.25%

15.94%

41.61%

0% 20% 40% 60%

Model

Price

Workmanship

Appearance

Noise Level

FilterEffectiveness

Lemai KX-35

Source: Tmall, compiled by MIC, November 2015

Brand Competition and Consumer Preference of the Chinese Air Purifier Market November 2015

© 2015 Market Intelligence & Consulting Institute

BDRPT15112302 16

6. USER ANALYSIS

6.1 Xiaomi

Figure 14: Xiaomi Air Purifier User Distribution by Gender & Age

74% 26%

Distribution by Gender

10.4%

33.4%

28.5%

11.7%10.0%

3.6%

0.0%

10.0%

20.0%

30.0%

40.0%

18-24 25-29 30-34 35-39 40-49 50-59

Distribution by Age

Source: Tmall, compiled by MIC, November 2015

Figure 15: Xiaomi Air Purifier User Distribution by Region

3.4%

3.8%

5.0%

5.1%

6.0%

6.2%

10.1%

10.8%

10.8%

12.7%

0% 10% 20%

Sichuan

Hubei

Anhui

Shandong

Fujian

Beijing

Shanghai

Jiangsu

Guangdong

Zhejiang

Distribution by Region

Source: Tmall, compiled by MIC, November 2015

Brand Competition and Consumer Preference of the Chinese Air Purifier Market November 2015

© 2015 Market Intelligence & Consulting Institute

BDRPT15112302 17

6.2 TCL

Figure 16: TCL Air Purifier User Distribution by Gender & Age

56% 44%

Distribution by Gender

14.9%

26.5%

14.9%

9.9%12.1%

10.8%

0.0%

10.0%

20.0%

30.0%

18-24 25-29 30-34 35-39 40-49 50-59

Distribution by Age

Source: Tmall, compiled by MIC, November 2015

Figure 17: TCL Air Purifier User Distribution by Region

2.7%

4.1%

5.0%

5.2%

7.5%

7.9%

8.7%

9.3%

9.9%

21.3%

0% 10% 20% 30%

Henan

Beijing

Hebei

Hunan

Shanghai

Shandong

Fujian

Zhejiang

Jiangsu

Guangdong

Distribution by Region

Source: Tmall, compiled by MIC, November 2015

Brand Competition and Consumer Preference of the Chinese Air Purifier Market November 2015

© 2015 Market Intelligence & Consulting Institute

BDRPT15112302 18

6.3 Sharp

Figure 18: Sharp Air Purifier User Distribution by Gender & Age

59% 41%

Distribution by Gender

7.4%

26.0% 24.9%

16.1%

11.2%

4.9%

0.0%

10.0%

20.0%

30.0%

18-24 25-29 30-34 35-39 40-49 50-59

Distribution by Age

Source: Tmall, compiled by MIC, November 2015

Figure 19: Sharp Air Purifier User Distribution by Region

2.4%

2.5%

2.9%

3.2%

4.7%

5.6%

10.3%

14.9%

16.9%

21.5%

0% 10% 20% 30%

Henan

Hebei

Hunan

Fujian

Beijing

Shandong

Zhejiang

Shanghai

Jiangsu

Guangdong

Distribution by Region

Source: Tmall, compiled by MIC, November 2015

Brand Competition and Consumer Preference of the Chinese Air Purifier Market November 2015

© 2015 Market Intelligence & Consulting Institute

BDRPT15112302 19

CONCLUSION

Brand Competition Analysis

Based on the number of air purifiers put on online stores Tmall and JD during 15

May 2015 and 15 August 2015, the top-10 brands were: Yadu, Philips, Sharp, TCL,

Panasonic, Mitsubishi, Midea, Changhong, Mfresh, and Xuyang. Among them,

foreign vendors Philips, Sharp, Panasonic, and Mitsubishi all made their way into

the top-5 places.

However, in terms of actual sales volume, Chinese brands such as Xiaomi, TCL,

Changhong, and Lemai performed better. The data showed that the top-5 models

in terms of sales volume were Xiaomi Mi Air Purifier, TCL TKJ-F220B, Changhong

CKJ-B160F, TCL TKJ-F220A, and Lemai KX-35. While the Chinese brand Yadu

ranked first in terms of the number of air purifiers put on online stores Tmall and JD,

the company fell out of the top 10 list when it comes to sales volume.

The analysis of brand preference revealed that, to Internet shoppers in China, air

purifier brand Xiaomi fell into the category of "mainstay products with high reviews,"

thanks to its high brand awareness and sentiment rating, while the foreign brand

Sharp belonged to the category of "niche products with high reviews." Among

foreign brands, Sharp KC-BB30-W managed to seize the sixth place in terms of

sales volume. The product received more positive reviews compared to other niche

products.

Table 1: Brand Competition Analysis

Brand Position Brand Actual Sales

Performance

Candidate

Buyers

Buyer Analysis

Mainstay

Products with

High Reviews

Xiaomi

Xiaomi Mi Air Purifier

was the overall

bestseller.

Mostly male

consumers

aged between

25 and 34

Internet users had

extremely positive

reviews about C/P

ratio, together with the

product's appearance,

workmanship, and

operational readiness

of Xiaomi's product.

Brand Competition and Consumer Preference of the Chinese Air Purifier Market November 2015

© 2015 Market Intelligence & Consulting Institute

BDRPT15112302 20

Brand Position Brand Actual Sales

Performance

Candidate

Buyers

Buyer Analysis

Niche Products

with High

Reviews

Sharp

Sharp KC-BB30-W

ranked 6th among

foreign brands in

terms of sales

volume.

Mostly male

consumers

aged between

25 and 34

Internet users had high

reviews about Sharp's

product quality and

functionality. In

particular, the

company's car air

purifiers are often

mentioned by Chinese

online shoppers.

Source: MIC, November 2015

Consumer Preference Analysis

During 15 May 2015 and 15 August 2015, most air purifier shoppers in China were

men aged between 25 and 34. Most of them live in Zhejiang, Guangdong, Jiangsu,

and Shanghai.

Top-5 best-selling air purifier models in China during the same period were Xiaomi

Mi Air Purifier, TCL TKJ-F220B, Changhong CKJ-B160F, TCL TKJ-F220A, and

Lemai KX-35. The strong sales of Xiaomi's Mi Air Purifier serves as an evidence of

the power of the company's fan economy.

When buying an air purifier, Chinese consumers cared more about noise level, C/P

ratio, and appearance, followed by workmanship and odor removal ability. In

particular, for the best-selling air purifier, i.e. Mi Air Purifier, Chinese online

shoppers focused more on noise level, C/P ratio, and appearance. Besides, many

shoppers were also concerned about the product's ability to eliminate unpleasant

odors or pickle-like smell.

Brand Competition and Consumer Preference of the Chinese Air Purifier Market November 2015

© 2015 Market Intelligence & Consulting Institute

BDRPT15112302 21

APPENDIX

Glossary of Terms

C/P Ratio Cost/Performance Ratio

NSR Net Sentiment Rate

Brand Competition and Consumer Preference of the Chinese Air Purifier Market November 2015

© 2015 Market Intelligence & Consulting Institute

BDRPT15112302 22

List of Companies

Changhong

Daikin

Gentleman

Kylin

Lemai

Mfresh

Midea

Mitsubishi

Panasonic

Philips

Povos

Sharp

TCL

Westinghouse

Xiaomi

Xiaomi

Xuyang

Yadu

For more information

Service Hotline +886 2 6631 1510

Fax +886 2 2732 1351

E-mail Address [email protected]

Web Address http://mic.iii.org.tw/english

© Copyright 2015 Market Intelligence & Consulting Institute, a division of Institute for Information Industry. All

rights reserved. Reproduction of this publication without prior written permission is forbidden. The content herein

represents our analysis of information generally available to the public or communicated to us by knowledgeable

individuals or companies, but is not guaranteed as to its accuracy or completeness.