The
outbreak of global pandemic COVID-19 has led to the disruption in the market,
especially in sectors such as Travel, Hospitality, Automakers and others. The
threatening crisis in public health has led to devour of over three hundred thousand
lives on a global level with many more in danger. Not only this, it has put a
stoppage on the livelihood and businesses across the globe.
In
India, the government has been proactively reacting to the situation and
implemented a nationwide lockdown as of 25th March 2020, which was later
extended in different phases depending on the level of spread of pandemic. This
lockdown aimed at closing the markets, interstate-movement and other activities
which would act as a barrier in the social distancing practices. The non-essential
consumer goods industry which includes apparel, electronics, kitchen appliances,
smart devices among others had been badly hit due to the corona virus pandemic.
The entire value chain has been disturbed. The manufacturers are facing the
heat in the supply of raw material from China due to which the production has
slowed down. The retailers and sellers are not able to receive inventory due to
limited interstate movement and low productions. Further, the consumers are
also spending cautiously, with focus on necessities such as food and groceries,
they are deferring the purchases for high cost items such as electronics. This
practice of discretionary spending is expected to be observed throughout the
year with diminishing savings and employment uncertainty among consumers amidst
this black swan event.
The
drinking water which is supplied in households is usually processed by water
treatment facilities to filter and disinfect the water before it is supplied in
homes. Therefore, the COVID-19 causing virus has not been detected in drinking
water. However, the outbreak of virus has led to the widespread health
awareness. People have become more concerned about their well being and are
focusing on sanitization and adopting healthy practices. They are ensuring
everything before consumption is properly cleaned. This has helped in raising
awareness about filtering and purifying water before consumption as well.
Disturbance in Supply Chain: China was the epicenter for the COVID 19
pandemic. The first lockdown was imposed in Wuhan in late January, 2020. This
put a halt in the Chinese manufacturing industry. This had a deep impact on the
India’s
water purifier industry. The Indian market imports spare parts and
other products in huge quantity from China. The unorganized market imports the
complete product or spares, assembles them and sells in the market. This had an
impact of production. The regional dealers, distributors and small retailers
import a small quantity of product and store it. They focus on not having large
inventory as it increases the storage costs. With the nationwide lockdown being
implemented the production of companies halted. There was limited interstate
movement which led to almost no inventory with small sellers. This impacted the
referral sales or direct sales assignments which these sellers were receiving.
Decline in Sales Q1, FY’2020: April and May is considered to be a good period
for selling water purifiers as consumers generally purchase other kitchen
appliances at this time. The retail and online sales were completely standstill
due to the implementation of lockdown for the whole of April and a large part
of May. This affected the sales of water purifier badly. Further, the supply
chain problems led to a no stock kind of situation in many regions.
Temporary & Long Term Shifts in the Business
Practices: The sale of
water purifiers started happening in the regions where the restrictions were
eased. The sellers focused on clearing the existing inventory. The unorganized
market was hit as they were not able to directly pitch the customers. However,
the clean drinking water is stated as a basic requirement for good hygiene and
health. So, the market is expected to recover fast. The consumers will prefer
purchasing the affordable models which have the required water purifying
technologies instead of purchasing high end models which have all the
technological features.
In
long run, the customers will shift towards the online retail and traditional
retail will fall down as people will avoid contacting and touching shelf
display items as a result of the COVID-19 aftereffects. There will be more
demand for community purification especially in high end societies and
residential areas. The consumption will move from bottled water to using water
purifier in order to ensure the authenticity and purity. The real estate
developers will start bundling the water purifier with other pre installed
electrical.
For More Information, refer to below link:-
Related Reports:-
Global Water Purifiers Market 2020 by Manufacturers,
Regions, Type and Application, Forecast to 2025
Contact
Us:-
Ken
Research
Ankur
Gupta, Head Marketing & Communications
+91-9015378249
