Source Kang Yunshui: Breaking the market bottleneck with business model

The water purifier market, which is known as the 100 billion yuan scale, has encountered bottlenecks in the past 2018.

According to data from Aowei.com, the annual sales of water purifiers in 2018 was 31.69 billion yuan, a year-on-year growth rate of 17.4%, a 15.5% decline from the growth rate in 2017, and far lower than 2014- In 2017, the industry’s compound annual growth rate of 33%.

Once, under the driving of consumption upgrade, as a piece of home appliance market, “Little Blue Sea, Net The water market is growing rapidly. In the market, there are brands such as Gion and Angel from the water purification industry, as well as domestic white giants such as Midea and Haier, as well as multinational companies such as 3M and DuPont. In the past few years, this cake has not been small, but there is no brand that has an absolute leadership position.

In 2018, the market situation turned sharply. Not only has sales growth slowed down, industry concentration and product average prices have also shown a downward trend, reflecting the increasingly fierce market competition and the industry has entered a bottleneck period.

In order to solve the pain points of the industry and build competitive barriers, one company has revolutionized the business model of water purifiers.

Subverting the innovation model

In April, Qingdao, the mountains and the sea, the air mixed with the fragrance of flowers and sea breeze, we saw the chairman of the source Kang Yunshui Dong Yanshun here.

In 2008, Dong Yanshun, who has been in the industry for many years, paid attention to the increasingly serious water pollution problem at that time and seized the national assistance. Pushing the trend of the water purification industry, Qingdao Sanshengshun Industry & Trade Co., Ltd. was established to carry out community water sales machines, corporate water purification and other businesses, and has since entered the water purification field. Dong Yanshun successfully transformed his resources and contacts, and quickly promoted the community water sales machine in the Qingdao market. Due to the good quality and low price, it was very popular once it was launched. Then Dong Yanshun replicated the business in nearly a thousand communities. The annual water fee income was as high as tens of millions of yuan, which also made the business of many partners.

In 2012, a university in Qingdao planned to upgrade and upgrade the direct drinking water system. After accounting, the total renovation cost was nearly 2 million yuan. This exceeds the budget of the school, the funds cannot be implemented, and the school has made it difficult. The school and Dong Yanshun agreed to use 15 years of management rights to exchange the upgrade cost of the direct drinking water system. In the course of business, Dong Yanshun boldly used the Internet and intelligent systems, and recovered the cost in less than three years. This is a full expression of accelerating the transformation of scientific and technological achievements into productivity, and laid the foundation for the birth of the source Kangyun water system. .

Beginning in 2015, Dong Yanshun discovered that users of water dispensers are losing. In the market survey, many users responded like this: “Your water quality is very good, the price is very affordable, and the service is very satisfactory. But now people are lazy, it would be great if you can put the water dispenser at home. Dong Yanshun’s keen discovery of this business opportunity has raised the idea in his mind: Is it a viable business model to transplant the water sales model to the water purifier?

In 2016, Dong Yanshun did A thing that many people are puzzled: investing heavily, setting up new projects, developing their own data platform and IoT water purifier, successfully creating the first source Kangyun water management platform with independent intellectual property rights in China, creating a clean water The industry’s first priority for precision services.

For the water purification industry, Dong Yanshun has his own understanding. Different from ordinary household appliances, the water purifier needs to change the filter element regularly. There is no fixed value, usually 3 months to 1 year. The water purifier manufacturer usually reminds the user to replace the filter element after 6 months of use.

This is not a solution. In the same water quality situation, for households with large water consumption, replacing the filter every 6 months means that the water purifier has lost a period of clean water. Function; for households with low water consumption, replacing the filter element in advance means waste, and the user intangibly bears higher costs.

In 2017, the first national conference of Yuankang Yunshui Platform was held in Shanghai. Unlike the common new product launch conference, Dong Yanshun did not write a special book on hardware. Instead, he described a brand-new business model: users can save free on-site installation, free replacement of filter cartridges and free maintenance and repair. Service. In terms of the cost of use, Yuankang Yunshui has two modes: flow metering and Baotian consumption. In this way, users can drink healthy and reliable drinking water for a small fee.

This mode of conversion not only reduces the burden and threshold of consumers, but also solves the problem of after-sales service.

Joining the market to grab the market

In order to quickly promote the product to the national market, Yuan Kangyun Water adopts the partner model, and the partner is responsible for the promotion of the local market, on-site installation and after-sales service. Kang Yunshui provides products and filters for the partners, and the profits are divided into two parts.

When we went to Qingdao for an interview, it coincided with the annual meeting of the source partner of Yuankang Yunshui. The atmosphere at the scene was very enthusiastic. In order to understand the operation mode of Yuankangyun Water, we interviewed several partners.

Mr. Jia, a partner of Shandong Taian, has been in the home appliance industry for many years. He first worked as an offline home appliance store. Later, his business was affected by e-commerce and began to undertake the after-sales business of the brand. He told us that the current gross profit in the field of home appliances is low, many brands are eager to pay attention to the after-sales service, and the profit margin of service providers is very small. The reason why I chose Yuankangyun Water was to be optimistic about its business model, especially the ultimate user experience brought by after-sales service.

& ldquo; Now we are doing the service, the service is done, there will be users, the end user has a good experience, will form a user fission, your product will have more people to introduce PromotionMultiply. In addition, long-term benefits are also points he values. Mr. Jia signed a contract with Yuankang Yunshui in September last year. At present, the installed capacity in Tai’an area has reached nearly 1,500. According to him, since entering the water purification industry, the income has increased by nearly 400,000 yuan, and it is still increasing. In the course of the interview, Mr. Jia’s face was always filled with a confident smile. He said with confidence: “At the end of this year, I will achieve the goal of earning more than one million in the first year of my life!

The field of pan-home decoration is indeed the easiest point for water purifiers to cut into.

Mr. Lu from Shandong Gaomi, seamlessly connected the agent of the water purifier to his main decoration business. The plumber can directly dock the user, and can also provide after-sales service at the door of the work. According to his observation, in the current market related to decoration, the demand for clean water is just needed, and the growth rate is quite fast. Mr. Lu has a high evaluation of the business model of Yuankang Yunshui. “This free model makes the traditional water purifiers unable to survive! Users spend less and can get long-term high-quality services, and that will definitely choose ours. product.

Dong Yanshun told reporters that in order to let more users understand Yuankangyunshui and enjoy the products of Yuankangyunshui, the company is willing to let the partners and consumers benefit from the long tail effect of the consumer groups.

The partnership model has attracted many entrepreneurs who want to start a business and have a sense of social responsibility, so that Yuankang Yunshui has been recognized by the market smoothly and has absorbed the dividend of market consumption upgrade. Less than two years of operation on the line, it has accumulated nearly 100,000 units of installed capacity. Not only that, the unique business model has enabled Yuankang Yunshui to successfully capture the pulse of the water purification market and lock in the consumer groups ahead of time. For Dong Yanshun, continuous profit is only a matter of time.

On the Internet of Things and big data, the business model of Yuankang Water has a lot of imagination. In addition to commercial value, there are environmental values ​​such as environmental protection, water quality monitoring, reducing the risk of drinking water pollution, and the social value of big data and Internet of Things. These are the fundamental reasons why Dong Yanshun and Yuankang Yunshui team continue to invest in this cause.

Creating a time window through business model innovation and using the partner model to seize the market, Yuankang Yunshui found a breakthrough point in the bottleneck of the water purification industry, and also attracted the attention of the industry and the media. As a start-up, the barriers to business models are not unbreakable. How to release kinetic energy in a limited time window and win a bigger market share is the fundamental to break through the bottleneck of the market!



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