Core Viewpoint - The water purification industry in China, despite being closely related to health and wellness, has faced persistent challenges and underperformance compared to optimistic forecasts from previous years [1][4]. Market Overview - The overall retail sales of water appliances in China, including water purifiers, reached 34.6 billion yuan in 2024, significantly lower than earlier predictions of over 100 billion yuan by 2017 [1]. - In the first half of 2025, retail sales of end-point water purification devices grew by 21.3% year-on-year, totaling 15.65 billion yuan, but the annual market size is still expected to remain below 40 billion yuan [4]. Regulatory Environment - The industry faces a significant tension between strict regulatory controls and market expansion, with water purifiers requiring approval from health authorities, limiting marketing strategies [4][5]. - Unlike packaged drinking water, which can leverage health benefits in marketing, water purifiers are restricted to safety as the primary selling point, constraining market appeal [4][5]. Competitive Landscape - The industry is plagued by homogenized competition, with many brands focusing on similar specifications and price reductions, leading to shrinking profit margins [5]. - The competition is characterized by a focus on parameters rather than user experience, hindering the transition from price wars to value-based competition [5]. Consumer Trust and Education - There is a persistent gap in consumer trust and information transparency, with the complexity of water purification technology creating a "black box" perception among users [5][6]. - Past controversies, such as the "anti-scaling agent" incident, have highlighted the industry's struggle with consumer education and communication, resulting in fragile market confidence [5][6]. Industry Challenges - Some companies resort to exaggerated claims and misleading marketing tactics, further eroding industry credibility and consumer trust [6]. - The evolving consumer perception of water quality, particularly the preference for mineral water, poses challenges for the reverse osmosis-based water purifier market [6]. Technological Innovations - Despite challenges, the industry is exploring technological advancements and user experience improvements, such as noise reduction and integrated designs [7]. - Companies like Haier and Amway are focusing on innovative technologies like mineral enhancement and UV-LED sterilization, although widespread application remains to be seen [7]. Future Outlook - The sustainable development of the water purification industry requires a return to genuine user value, innovation, and trust rebuilding rather than relying on short-term marketing strategies [7]. - To surpass the 40 billion yuan threshold and reach the long-anticipated 100 billion yuan market, a fundamental product revolution and value return are essential [7].