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 is also facing price war which is common thing. Nut 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, bring 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 has 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 are present having ratio of 60:30 in volume terms which is different in value terms as there are huge price difference. 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. Top three players have
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 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: 28, Tables: 18