Air Fresheners - China - October 2013

INTRODUCTION
Definition
Report structure
Methodology
Abbreviations
EXECUTIVE SUMMARY
The market
Figure 1: Best and worst-case forecast of sales of air fresheners in China, 2008-18
Companies and brands
Figure 2: Air freshener brands in China, by brand share in value terms, 2010-12
The consumer
Air fresheners enjoy high penetration in China
Figure 3: Air fresheners used in the past 12 months, August 2013
Bathroom odour the key type that consumers want to eliminate
Figure 4: Types of odours users of air fresheners try to remove most frequently, August 2013
Having natural ingredients becomes the most important factor for buying air fresheners
Figure 5: Most important factors influencing choice of air fresheners, August 2013
Attitudes towards using air fresheners
Figure 6: Attitudes towards using air fresheners, August 2013
General attitudes towards air fresheners
Figure 7: General attitudes towards air fresheners, August 2013
Key trends
Reaching the high-end market with emotional benefits and natural ingredients
The future of car air fresheners
Health concerns and air fresheners
What we think
THE MARKET
Key points
Market size and forecast
Air fresheners market shows steady increase from 2008-2013
Figure 8: Sales and forecast of air fresheners in China, by value, 2008-18
Forecast: the market shows growth rate slowing
Figure 9: Best and worst-case forecast of sales of air fresheners in China, 2008-18
Market segmentation
Figure 10: Value sales of air fresheners in China, by segment, 2009-12
Aerosols dominant but with a declining market share
Air fresheners with emotional benefits need revitalisation
Car ownership leading to a surge in sales of car air fresheners
Slow release is slowly losing ground to other segments
Market drivers
Consumers are getting more health-conscious
Tackling consumer concerns using new and natural materials
Moving from covering to absorbing
The 4-2-1 family structure and its impact on air fresheners
The evolving functionality of air fresheners: moving from odour-killing to mood-setting
Growing car ownership drives the car air fresheners segment up
Figure 11: Car sales in China, 2007-12
COMPANIES AND BRANDS
Key points
Brand share
Figure 12: Air freshener brands in China, by brand share in value terms, 2010-12
Companies
SC Johnson & Son, Inc.
Guangzhou Houdy Cosmetics Co., Ltd.
Hebei Konda Co., Ltd.
Shanghai Kobayashi Daily Chemicals Co., Ltd.
Amway Co., Ltd.
THE CONSUMER – USAGE OF AIR FRESHENER PRODUCTS
Key points
Air fresheners enjoy high penetration in China
Figure 13: Air fresheners used in the past 12 months, August 2013
Figure 14: Air fresheners used in the past 12 months, by type of air freshener, August 2013
Air fresheners with emotional benefits are more appealing to women
Figure 15: Air fresheners used in the past 12 months, by gender, August 2013
Figure 16: More than five types of air freshener products used in the past 12 months, by gender, August 2013
Parents with young children are more likely to use air fresheners
Figure 17: Air fresheners used in the past 12 months, by age of children at home, August 2013
Types of air fresheners used correlated with odours aimed at eliminating
Chinese consumers are likely to buy multiple air freshener products
Figure 18: Number of different types of air freshener products used in the past 12 months, August 2013
Parents with young children are more likely to have multiple air fresheners
Figure 19: More than five types of air freshener products used in the past 12 months, by age of children at home, August 2013
THE CONSUMER – ELIMINATION OF ODOUR BY TYPE
Key points
Bathroom odour the key type of odour consumers want to eliminate
Figure 20: Types of odours users of air fresheners try to remove most frequently, August 2013
Multiple purpose products have potential…
Figure 21: Number of different types of odours people try to remove frequently, August 2013
… but bathroom odour is still the key reason behind using air fresheners
Figure 22: Types of odours users of air fresheners trying to remove, by those trying mostly to remove one odour, August 2013
THE CONSUMER – FACTORS INFLUENCING CHOICE
Key points
Having natural ingredients is the most important factor for buying air fresheners
Figure 23: Most important factors influencing choice of air fresheners, August 2013
Women are more likely to consider scents as important
Figure 24: Selected important factors when buying air fresheners, by gender, August 2013
High-earners consider well-known brand an important factor
Figure 25: Selected important factors when buying air fresheners, by household income, August 2013
Parents are less likely to consider promotional offers as important…
Figure 26: Importance of promotional offers when buying air fresheners, by having children, August 2013
… and parents with younger children pay more attention to chemical-free claims
Figure 27: Importance of being chemical-free when buying air fresheners, by having children, August 2013
THE CONSUMER – USAGE AND BUYING PREFERENCES
Key points
Attitudes towards using air fresheners
Figure 28: Attitudes towards using air fresheners, August 2013
High earners show greater brand loyalty …
Figure 29: Agreement with the statement “I tend to stick to the same air freshener products” when referring to air fresheners for the home, by personal income, August 2013
… and they are more likely than average to prefer well-known brands
Figure 30: Agreement with the statement “I prefer air fresheners of well-known brands than private labels” when referring to air fresheners for the home, by personal income, August 2013
Changing scents from time to time is important to older women from tier one cities
Figure 31: Agreement with the statement “I tend to switch air fresheners’ scents from time to time” when referring to air fresheners for the home, by demographics, August 2013
Consumers in their twenties tend to prefer international brands when using car air fresheners…
Figure 32: Agreement with the statement “I prefer using air fresheners from international brands” when referring to car air fresheners, by age, August 2013
… and they show greater brand loyalty than average
Figure 33: Agreement with the statement “I tend to stick to the same air freshener products”, by age, August 2013
THE CONSUMER – ATTITUDES TOWARDS USING AIR FRESHENERS
Key points
General attitudes towards air fresheners
Figure 34: General attitudes towards air fresheners, August 2013
Parents with younger children less likely to consider international brands as overpriced…
Figure 35: Agreement with the statement “Air fresheners from international brands tend to be overpriced”, by age of children, August 2013
… and younger consumers less likely to consider international brands as overpriced
Figure 36: Agreement with the statement “Air fresheners from international brands tend to be overpriced”, by age, August 2013
International brands are more appealing to consumers from tier one cities
Figure 37: Agreement with the statement “Air fresheners from international brands are safer to use”, by city tier, August 2013
Attitudes towards extra functionality
High earners more likely to prefer self-detection of odours as an extra function…
Figure 38: Agreement with the statement “I would prefer air fresheners with the capability of automatically detecting the source of odour”, by household income, August 2013
… and natural ingredients also more attractive to high earners than average
Figure 39: Agreement with the statement “I would like to try air fresheners made of natural ingredients”, by personal income, August 2013
KEY ISSUE – REACHING THE HIGH-END MARKET WITH EMOTIONAL BENEFITS AND NATURAL INGREDIENTS
Key points
The growing middle class shows the increasing popularity of xiaozi lifestyle
Figure 40: Disposable income per urban household in China, 2000-12
Air fresheners with emotional benefits tend to be attractive to Chinese consumers…
Figure 41: Attitudes towards using air fresheners, August 2013
… but products with emotional benefits are still limited
High earners show a stronger preference for having natural ingredients in air fresheners…
Figure 42: Agreement with the statement “I would like to try air fresheners made of natural ingredients”, by income, August 2013
… and tend to show greater brand loyalty and stronger preferences towards well-known brands compared with mid to low earners
Figure 43: Agreement with the statement “I tend to stick to the same air freshener products”, by income, August 2013
Figure 44: Agreement with the statement “I prefer air fresheners of well-known brands than private labels”, by income, August 2013
Differentiating air freshener products based on where they are being used
Figure 45: Different types of air freshener products used, August 2013
What does it mean?
KEY ISSUE – THE FUTURE OF CAR AIR FRESHENERS
Key points
Background
Figure 46: Car sales in China (‘000 vehicles), 2007-12
Certain extra functions show potential in some consumer segments
Extra functions tend to be less important for air freshener products for car compared with home use…
Figure 47: Agreement with the statement “I prefer to buy air fresheners offering extra functionalities”, by place of using, August 2013
… but automatic detection is especially important…
Figure 48: Agreement with the statement “I would prefer air fresheners with the capability of automatically detecting the source of odour”, by place of using, August 2013
… and customising scents is also attractive
Figure 49: Agreement with the statement “I would be interested in customising my choice of scents for the air fresheners I use”, by place of using, August 2013
Consumers tend to be more loyal when buying car air fresheners
Figure 50: Agreement with the statement “I tend to stick to the same air freshener product”, by place of using, August 2013
High earners are more likely to use car air fresheners
Figure 51: Car fresheners used in the past 12 months, by income, August 2013
Natural ingredients are the most important factor when buying car air fresheners…
Figure 52: Important factors when buying air fresheners, August 2013
…while improving air quality is important when using car air fresheners
Figure 53: Attitudes towards using air fresheners, August 2013
Figure 54: Agreement with selected attitudinal statements towards using air fresheners, by place of using, August 2013
What does it mean?
KEY ISSUE – HEALTH CONCERNS AND AIR FRESHENERS
Background
Negative perceptions towards air fresheners are prevalent…
Figure 55: Agreement with selected attitudinal statements towards air fresheners in general, August 2013
… but usage of air fresheners remains high
Figure 56: Air fresheners used in the past 12 months, August 2013
Figure 57: Air fresheners used in the past 12 months, August 2013
Fragrance-free odour absorption air freshener products gain momentum
Natural ingredients and eliminating odours are the most important factors when buying air fresheners
Figure 58: Important factors when buying air fresheners, August 2013
Scents tend to indicate the products as ‘unhealthy’ and ‘chemical’
Figure 59: Attitude towards strong scents in air fresheners, August 2013
Figure 60: Unfragranced new product launches in air care in China, 2010-12
Chinese consumers hold polarised views on the origin of air freshener products
International brands tend to enjoy positive perceptions…
Figure 61: Agreement with the statement “air fresheners from international brands are safer to use”, August 2013
Figure 62: Selected demographics of the Health-concerned segment, August 2013
… but many also consider domestic brands just as good as international brands
Figure 63: Agreement with the statement “The quality of air fresheners from China’s own brands are just as good as international brands”, August 2013
Figure 64: Selected demographics of the pro-domestic segment, August 2013
Parents with young children are more willing to buy air fresheners from international brands
Parents of young children are particularly concerned over the health implications of using air fresheners…
Figure 65: “Chemical free” as an important factor when buying air fresheners, by age of children, August 2013
… and they are less sensitive to price …
Figure 66: “Low price” as an important factor when buying air fresheners, by age of children, August 2013
… in particular when buying products from international brands
Figure 67: Agreement with the statement “air fresheners from international brands tend to be overpriced”, by age of children, August 2013
What does it mean?
APPENDIX – AIR FRESHENERS USED IN PAST 12 MONTHS
Figure 68: Air fresheners used in the past 12 months, August 2013
Figure 69: Most popular air fresheners used in the past 12 months, by demographics, August 2013
Figure 70: Next most popular air fresheners used in the past 12 months, by demographics, August 2013
Figure 71: Other air fresheners used in the past 12 months, by demographics, August 2013
Figure 72: Air fresheners used in the past 12 months, by the most important factors for buying air fresheners, August 2013
Figure 73: Air fresheners used in the past 12 months, by the next most important factors for buying air fresheners, August 2013
Figure 74: Air fresheners used in the past 12 months, by other important factors for buying air fresheners, August 2013
Figure 75: Air fresheners used in the past 12 months, by attitudes towards using air fresheners, August 2013
Repertoire analysis
Figure 76: Repertoire of air fresheners used in the past 12 months, August 2013
Figure 77: Repertoire of air fresheners used in the past 12 months, by demographics, August 2013
Figure 78: Air fresheners used in the past 12 months, by repertoire of air fresheners used in the past 12 months, August 2013
APPENDIX – WHERE AIR FRESHENERS ARE USED
Figure 79: Where air fresheners are used, August 2013
Figure 80: Where air fresheners are used, August 2013
Figure 81: Most popular where air fresheners are used, by demographics, August 2013
Figure 82: Next most popular where air fresheners are used, by demographics, August 2013
APPENDIX – TYPES OF ODOURS TO REMOVE
Figure 83: Types of odours to remove, August 2013
Figure 84: Most popular types of odours to remove, by demographics, August 2013
Figure 85: Next most popular types of odours to remove, by demographics, August 2013
Figure 86: Other types of odours to remove, by demographics, August 2013
Repertoire analysis
Figure 87: Repertoire of types of odours to remove, August 2013
APPENDIX – MOST IMPORTANT FACTORS FOR BUYING AIR FRESHENERS
Figure 88: Most important factors for buying air fresheners, August 2013
Figure 89: Most important factors for buying air fresheners, by demographics, August 2013
Figure 90: Next most important factors for buying air fresheners, by demographics, August 2013
Figure 91: Other important factors for buying air fresheners, by demographics, August 2013
Figure 92: Most important factors for buying air fresheners, by most popular air fresheners used in the past 12 months, August 2013
Figure 93: Most important factors for buying air fresheners, by next most popular air fresheners used in the past 12 months, August 2013
Figure 94: Most important factors for buying air fresheners, by other air fresheners used in the past 12 months, August 2013
APPENDIX – ATTITUDES TOWARDS USING AIR FRESHENERS
Figure 95: Attitudes towards using air fresheners, August 2013
Figure 96: Most popular attitudes towards using air fresheners – Used for your home, by demographics, August 2013
Figure 97: Next most popular attitudes towards using air fresheners – Used for your home, by demographics, August 2013
Figure 98: Other attitudes towards using air fresheners – Used for your home, by demographics, August 2013
Figure 99: Most popular attitudes towards using air fresheners – Used for your car, by demographics, August 2013
Figure 100: Next most popular attitudes towards using air fresheners – Used for your car, by demographics, August 2013
Figure 101: Other attitudes towards using air fresheners – Used for your car, by demographics, August 2013
Figure 102: Attitudes towards using air fresheners, by most popular air fresheners used in the past 12 months, August 2013
Figure 103: Attitudes towards using air fresheners, by next most popular air fresheners used in the past 12 months, August 2013
Figure 104: Attitudes towards using air fresheners, by other air fresheners used in the past 12 months, August 2013
APPENDIX – GENERAL ATTITUDES TOWARDS AIR FRESHENERS
Figure 105: General attitudes towards air fresheners, August 2013
Figure 106: Agreement with the statement ‘I am concerned that the chemicals used in air fresheners is harmful to my health’, by demographics, August 2013
Figure 107: Agreement with the statement ‘It is better to get rid of bad odours via good ventilation than using air fresheners’, by demographics, August 2013
Figure 108: Agreement with the statement ‘Air fresheners only cover odours but cannot eliminate it completely’, by demographics, August 2013
Figure 109: Agreement with the statement ‘I would prefer air fresheners with the capability of automatically detecting the source of odour’, by demographics, August 2013
Figure 110: Agreement with the statement ‘I would be interested in customising my choice of scents for the air fresheners I use’, by demographics, August 2013
Figure 111: Agreement with the statement ‘I would like to try air fresheners made of natural ingredients’, by demographics, August 2013
Figure 112: Agreement with the statement ‘I would consider using air fresheners providing air purifying functions’, by demographics, August 2013
Figure 113: Agreement with the statement ‘Air fresheners from international brands tend to be overpriced’, by demographics, August 2013
Figure 114: Agreement with the statement ‘The quality of air fresheners from China’s own brands are just as good as international brands’, by demographics, August 2013
Figure 115: Agreement with the statement ‘Air fresheners from international brands are safer to use’, by demographics, August 2013
Figure 116: General attitudes towards air fresheners, by most popular air fresheners used in the past 12 months, August 2013
Figure 117: General attitudes towards air fresheners, by next most popular air fresheners used in the past 12 months, August 2013
Figure 118: General attitudes towards air fresheners, by other air fresheners used in the past 12 months, August 2013
APPENDIX – FURTHER ANALYSIS
Figure 119: Target groups, August 2013
Figure 120: Target groups, by demographics, August 2013
Figure 121: General attitudes towards air fresheners, by target groups, August 2013
Figure 122: Air fresheners used in the past 12 months, by target groups, August 2013