Smart and cheap

The DIY1.0 air purifier is composed of a fan, a HEPA filter and a strap. (Photo courtesy of Smart Air)

Expat startup offers bargain air purifiers to smog-choked Chinese

(ECNS) -- An electric fan, a filter, and a strap to bind the two – that's all you need to fight air pollution in your room.

The DIY purifier was invented in 2013 by Thomas Talhelm, a PhD candidate at the University of Virginia, and is run by a team of 10 called Smart Air and led by Gus Tate, an American student who graduated from Beijing Normal University last year.

Retailing at 200 yuan ($33) each, Smart Air aims to help smog-choked Chinese breathe a little more free without having to shell out thousands of dollars for expensive purifiers.

The idea

In 2013, China's capital city suffered from prolonged bouts of heavy pollution. Residents started calling it the "airpocalypse" as pollution went off the charts.

Talhelm was a Fulbright scholar in Beijing at the time.

"I wore masks outside, but wasn't super concerned with indoor air quality until I got a cold and thought the pollution might have played a role," he said.

Talhelm thought about buying an air purifier, but found that some cost over $1,000.

"It was crazy," he said, explaining that after much research he realized the essential component needed was the HEPA (high efficiency particle air) filter, which was invented decades ago.

So he rolled up his sleeves and made his own purifier. Anna Guo, who's also on the team, contacted a HEPA filter manufacturer and helped Talhelm design the very first one.

What followed were taking photos of the filter every day, recording the readings from a particle counter, and posting the results online.

These numbers caught people's attention. Talhelm ordered more parts and started running workshops in Beijing.

"I was quite nervous at the beginning, because if I failed, I would have been stuck with 20 fans and 20 filters that I didn't know what to do with."

However, the workshop proved a success. Within hours, Talhelm's inbox was flooded with orders.

Weeks later he returned to the US to continue his doctorate studies, with Tate and the others left to run the business.

"Not in it for the money"

Although Tate has said that earnings are a "business secret," he admits the team isn't making much money.

Smart Air earns about 50,000 yuan ($8,100) in revenue on the best day, and 8,200 yuan ($1,300) on average. Since last September, the team has sold more than 10,000 units, including the 1.0 version and an upgraded edition called "Canon," which sells for 400 yuan ($65).

"Lots of friends told me not to reveal how it is made and to raise the price," Talhelm said, "but I think they're missing the point here."

He thinks it's wrong to make a fortune by selling clean air. The team, preferring to be called a social enterprise rather than a business, said their focus lies in raising awareness and spreading knowledge so people won't be tricked into buying overpriced products.

China's air problem has given rise to a booming air purifier market. According to China Market Monitor, consumers will have purchased 3.6 million air purifiers by the end of 2014, pushing up total sales to over 9 billion yuan ($1.5 billion).

The sector has become rather chaotic due to a lack of regulation and consumer knowledge, according to commerce authorities.

Based on an August report by China Market Monitor, over 40 percent of air purifiers are priced at 3,000 yuan ($500) or higher, with 10 percent at 5,000 yuan ($830) or higher. Profits related to air purifiers can reach 50 percent, while the equivalent for television sets is only 15 percent.

In November, China announced national standards to include specific metrics for measuring the performance of air purifiers, including CADR (clean air delivery rate), noise level and maintenance.

"These standards would be good news if they could stop more consumers from being misled," Tate said, adding that Smart Air always tests for small particles, so no changes will be made.

Building a good business

Since Talhelm put together the first purifier in 2013, he and the team have been publishing data on Tumblr, the Smart Air website and their shop site on Taobao.com, China's largest e-commerce platform. Via such channels customers can check out the efficiency and speed of Smart Air purifiers, and how they perform compared to more expensive counterparts.

Talhelm said it's their data that have convinced many buyers.

"The real thing here isn't DIY, but data. Some say people don't want data, but in fact they do."

On their Taobao site, which is rated 4.9 out of 5 points in terms of quality, service and delivery speed, a few buyers have been actively posting their own results and comments.

There are companies that claim that expensive purifiers perform better, but Talhelm said these comments are mostly theoretical, and that few people run any tests or present real data.

"Don't underestimate the openness and transparency of a company. There are many small businesses in China, but I think some of them are too short term. They just want to make money, flip the company and sell. I want to have an honest company and think people will appreciate that," Talhelm explained.

He said that instead of making money, he's more concerned about how Chinese people see Smart Air.

"I don't want them to view us as just another company set to rip them off," he said.

Currently, Smart Air is working with engineers to develop their next product, which, according to Tate, will look and function better, but at the same price.