China’s Air Purifier Industry Revisited: Implications for Competitive Strategy

Abstract

Air purifiers have been widely used in South Korea, Japan, and countries in the West, but their penetration in China is still very low, suggesting great growth potential. I researched China’s air purifier industry in 2015 when it was experiencing a surge of new entries. In this study, I examine the development of the industry since then and firms’ competitive positions. In addition, I also explore how firms could compete effectively in the future. I collect data from a major online platform in China. Results show that the previous industry entries were not successful. Massive exits occurred during 2016-2018. However, firms entered the industry again after it hit the bottom in 2018. I argue that the structural change of the industry can be better understood by studying the dynamics of its submarkets. Firms’ competitive positions have also changed. Late-movers have successfully caught up and surpassed the long-time industry leader. The industry-level factors and firm-level resources have contributed to their success. Finally, I discuss practical implications.