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Does water softener have a future market?

  Economists finally attracted his interest in water bonds.

  They actively participate in press conferences, free trial platforms and WeChat groups' publicity activities. In the form of free experience, users can receive water softener in batches. "Once the drawer in the home is opened, almost all brands of water softener can be bought.

  Channel distributors are also wearing water softener.

  Thousands of ash war attacks, this channel has become a hot spot. Some people like to ignore it, some sit on the ground asking for money, others take advantage of it. In the long water softener industry chain, each participant came to eat a piece of pie.

  He said: "Although the industry has generally adopted an increase of four to five times, 80% of the selling price has been handed over to the channel through a layer-by-layer offline sales channel." The current situation is not optimistic either. As traditional cigarettes are forbidden to be sold on the internet, the habit of users buying water softener on the internet has not yet formed and the number of contacts is limited. At present, the focus of water softener brand is still on the Internet. In the process of competing for channels, some brands are offering discounts lower than the cost price to stimulate vicious competition.

  He said: "water softener's entrepreneurs complain that" they pick up wool at the c end and get subsidies at the b end. " "I think if water softener continues like this, they will eventually create a profitable industry so that everyone cannot make money.

  Tobacco is a trillion-dollar market. Watersoft is regarded by the industry as the next big wind outlet worth pursuing. Cross-border internet celebrities have joined water softener, which makes people think water softener's business is profitable.

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  How much money can water softener make? Why is a seemingly lucrative business a loss-making business? And then help you take water softener apart.

  1. Real and False Trillion Markets

  To know exactly how much space there is in the water softener market, we might as well look at the state of capital.

  In June 2018, Yuechao invested 38 million yuan from IDG and SourceCapital, opening the first act of electronic warfare. One year later, capital's enthusiasm for the water softener track has continued unabated.

  Does water softener have a future market?

  The financing situation of domestic water softener enterprises in the past year.

  Water softener is characterized by being a consumer electronic product in product form and tobacco in functional use. In public view, tobacco is a monopoly and profit-making industry.

  In 2018, China's tobacco industry's total annual industrial and commercial tax revenue and profits reached 115.56 trillion yuan, of which 1 trillion yuan was turned over to the state finance, a huge amount and a total tax revenue of less than 14 trillion yuan. In addition, China has more than 300 million smokers, and these 300 million people will be potential users of water softener.

  So, with the function of replacing cigarettes, how much market space does WaterSoft have?

  Does water softener have a future market?

  Source/Guosheng Securities Research Institute

  According to research data from Guosheng Securities, the global tobacco market is 700 billion US dollars. When the market penetration rate of water softener is 1.56%, the market size of water softener is 12 billion US dollars. When WaterSoft further eroded the traditional tobacco industry, the market size was 23.1 billion US dollars.

  Specifically, when the total annual revenue of China's tobacco companies is 1 trillion yuan and the water softener market penetration rate is 1%, the domestic water softener market scale is 10 billion yuan. Some insiders told "combustion finance" that China's water softener market is still in its infancy. For a long time in the past, the permeability of water softener in China was less than 1%.

  Permeability has become a key indicator to determine the market size of water softener. On the other side of the United States, the proportion has reached 13%. This means that the domestic market has at least 100 billion yuan in incremental space.

  Zhao Yangbo, Qichen's vice president in charge of capital investment, told "Burning Finance" that the size of the domestic small tobacco market will be at least 10 billion yuan in 2019. In the long run, this is a market of at least 100 billion or more. He believes that the core users of water softener are not regular smokers. In fact, the proportion of young people is very high. In the future, traditional cigarettes cannot completely eliminate water softener and water softener cannot completely replace cigarettes, which will be the coexistence of the two products.

  From 1% to 13%, a company with a market value of 10 billion US dollars may be born. In fact, the U.S. water pipes for sale company Juul was valued at 38 billion U.S. dollars at the end of last year. The company has been established for less than four years and its market share in the United States has increased from 2% in 2015 to 76% at the end of 2018.



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