From the need to cross the ocean “back” back to the “scarcity of goods”, to today’s major e-commerce platform with the search of both, has become a new trend of quality of life, smart toilet is being accepted by more and more Chinese families, the market penetration rate in the past few years to rapidly increase. Recently, Goldman Sachs, an internationally renowned investment bank, made a “rare” prediction on China’s smart toilet market, believing that the penetration rate of this category in the Chinese market in the next four years will increase to 11%, which is equivalent to more than doubling the market capacity. So, smart toilet penetration rate will be as fast as Goldman Sachs predicted? When the market average price downward trend appeared, the popularity of high growth rate is related to this? For the future, in the process of rapid expansion, the smart toilet market, there are still what problems and pain points to be solved?
According to Goldman Sachs, smart toilets are about to be embraced by Chinese culture, and the category’s penetration rate in China will rise from 4% in 2022 to 11% in 2026, when the total revenue of China’s sanitary ware industry will reach $21 billion per year. Admittedly, with consumers’ passionate pursuit of smart home life over the past few years, smart toilets have flourished in the Chinese market, and in terms of e-commerce, for example, according to GfK’s CICOM data, the CAGR of smart toilets from 2017 to 2022 was 32%, and market penetration is currently boosted to around 4%-5%. However, to be like Goldman Sachs predicted, in the next less than 4 years, the market penetration rate from the current less than 5% to 11%, although there is room for imagination, but also difficult.
On this one issue, China’s national grid reporter consulted a number of mainstream smart toilet enterprises, industry analysts, they have expressed optimism about the development potential of the smart toilet market in the next few years, but from an objective point of view, they also do not agree that the smart toilet penetration rate will grow so fast in the next just four years. “On the one hand, with the rapid development of China’s economy, the per capita disposable income of residents in the continued growth of consumption upgrading and urbanization rate continues to improve to promote the demand for intelligent toilet upgrade,” GfK senior analyst Xiaolei Ha pointed out to the State Grid reporter analysis. But on the other hand, China has a vast number of townships and rural markets, the ownership of its flush toilet is very low, and health education and other relatively backward, which affect the penetration rate of intelligent sanitary ware products represented by intelligent toilet. In addition, China’s real estate market is in the doldrums, from the recent release of a number of sanitary ware listed companies in the half-yearly report, by the impact of China’s property market performance under pressure, the relevant business sales and profits have declined.
4 years more than doubled the penetration rate growth is obviously not realistic, but the long slope of the smart toilet industry, thick snow potential still can not be ignored. Panasonic residential equipment business BU long Ren Shao Yang to the country grid reporter said, thanks to the upstream and downstream industry chain gradually improved, consumer mind changes (health, customization, intelligent demand surge), as well as channel diversification change (early offline building materials to today’s online multi-channel product presentation, and gradually become the front-end of the front-end of the designers and decoration company standard, the content of the communication channels and diversification) and so on multiple good factors, the next 3-5 years, the next 3-5 years, the intelligent toilet industry is still a long slope of snow potential. Favorable factors, the next 3-5 years smart toilet in the domestic market scale growth rate, penetration rate will maintain rapid growth. “Sort of a small windfall in the home furnishing industry,” said Ren Shaoyang.
“In recent years, China’s middle- and high-income and high-income consumer groups continue to grow rapidly, consumption upgrading, health, digital intelligence has become the main direction of consumer choice, consumers in the development of purchasing decisions are increasingly focusing on quality and functionality. Embodied in the toilet products, compared with the traditional toilet, intelligent toilet comfort, convenience and health qualities are increasingly recognized and trusted by consumers”, nine pastor group operations president Lin Xiaowei also talked to the reporter, the growth of middle- and high-income people and changes in user consumption habits, coupled with the accelerated aging, upgrading of the consumption structure and urbanization continues to promote the transformation of public toilets, Nursing homes, some large shopping malls and high-end office buildings, most of the medium and high-end hotels and other public places have begun to replace the intelligent toilet. At the same time, because China’s aging population is further deepening, and 90% of the elderly people are adopting the mode of ageing at home, the “age-appropriate transformation” of home life is becoming a necessity. …… All these factors have contributed to the smart toilet at this stage and the next period of time in the domestic market will maintain high growth. Of course, in addition, the “average price downward” this tool should not be ignored.
Post time: Nov-13-2023
