Although the home water purifier rental model has succeeded in markets like South Korea and Malaysia, where brands like Coway have gained significant market share, it has failed to take root in China. Many Chinese water purification companies have tried replicating this model, but most efforts ended in failure—even Coway’s attempts in China fell short. So, why does the rental model struggle in China? Here are the key reasons:
Dominance of Online Sales and Low Purchase Costs
In China, online sales have become the primary channel for water purifiers, and fierce market competition has driven prices down. Purchasing a water purifier has become far more economical compared to renting one. Aibote aligns with this trend by offering high-quality, affordable purifiers that meet consumers’ preference for ownership.
Coway’s Premium Pricing Clashes with Chinese Market Preferences
Coway positions itself as a premium brand, with purifiers often priced at over ¥10,000. While this high-price strategy successfully fueled rental models in markets like South Korea and Malaysia, Chinese consumers prioritize value for money. The steep upfront cost of Coway’s products makes rental models less appealing.
Chinese Consumers Prefer Ownership Over Renting
Chinese consumers culturally favor owning household appliances outright. Ownership provides a stronger sense of security and permanence, driving them to purchase rather than rent. Aibote’s products cater to this preference, emphasizing the tangible value and peace of mind that come with owning a purifier.
Local Manufacturing Advantages and Cost Efficiency
China is a global manufacturing hub for water purifiers, ensuring abundant supply, high quality, and low prices. Aibote leverages domestic production strengths to deliver innovative, high-performance purifiers at competitive prices. This cost efficiency eliminates the need for rental models, as consumers can afford to buy advanced systems outright.
Aibote’s Winning Strategy
The failure of the rental model in China highlights the market’s unique demands. By understanding these dynamics, Aibote has thrived by offering cost-effective, technologically advanced purifiers that bypass the rental model’s pitfalls. By aligning with consumer desires for ownership, security, and practicality, Aibote is leading the future of China’s water purification market.