China's air purifier market suffers from lack of regulation

Haze makes air purifiers popular in China. (File photo)

(ECNS) -- In China it seems that anyone can make air purifiers these days. The industry is packed with manufacturers who once made mouses for computers, paper shredders and massage chairs. As a result, regulatory policies are urgently needed to battle false advertising, fake certifications and irrational price tags.

A gold rush

It all started in 2011, when the US Embassy revealed Beijing's extremely high level of PM2.5 particles. Air purifiers experienced overnight fame after extensive media coverage brought the haze problem to public attention.

In December 2013, online sales of air purifiers soared to 610 million yuan (about US$100 million), a fivefold increase over a year earlier. Offline sales reached 1 billion yuan, according to statistics from All View Consulting, a Chinese firm focusing on electrical appliances.

All View's brand manager Su Liang said almost 200 manufacturers are cashing in on the market, with numerous more whose names aren't known.

Huge profits

The total cost to make an air purifier is no more than 1,000 yuan, according to a domestic manufacturer.

The cost lies in a purifier's internal components and the mould used to make it. The accessories, including the filter, screen, active carbon net and shell only cost several hundred yuan. The mould usually costs 10,000 yuan but can be used multiple times.

In 2013 an air purifier sold for 2,913 yuan on average, a 10% increase over 2012, according to statistics from China Market Monitor.

All View Consulting data show that the market volume of air purifiers was 12 billion yuan in 2013. That figure is estimated to rise to over 20 billion this year and 150 billion by 2020.

Overseas brands own 80% of the market. Sharp, Philips and Blueair are the top three brands on Jingdong Mall, a big online retailer.

National standards coming

False advertising is the biggest problem, as manufacturers have the right to make their own ads.

Loose inspection standards are also abused.

Song Guangsheng, director of China's watchdog for indoor environment, told the Beijing News that the test results of a purifier's efficiency can be inaccurate, as manufacturers test their products in smaller rooms to get better results.

The good news is that a revised draft of the national standard is expected to be released at the end of this year. The new standards would include testing methods for methanol and benzene, and a calculation method for purification efficiency, said Chen Xitong, spokesperson for the Bureau of National Quality Inspection.