Chinese Smart Toilet: The Market Is Expected To Exceed 30 Billion

1. Overview: Intelligent toilet has rich functions

Smart toilets, also known as smart toilets or electronic toilets, belong to the field of building water supply and drainage materials and refer to sanitary appliances controlled by electronic circuits installed on traditional ceramic or plastic toilet bases. Smart toilets are mainly divided into two categories: smart toilet lids and smart all-in-one machines. Compared with ordinary toilets, they have functions such as seat heating, automatic cleaning, automatic flushing, deodorization and sterilization, and induction flipping.

2. Analysis of driving factors; Multiple factors such as the epidemic situation, price drop, and multi-channel layout drive the rapid development of China's intelligent toilet industry

a. The epidemic has caused consumers to pay attention to the quality of home furnishing, and the smart toilet has rich functions and good user experience, forming a strong user stickiness
According to the "In-depth Research and Investment Prospect Research Report on China's Smart Toilet Industry Development (2023-2030)" released by Guanyan Report. The demand for quality home life has formed strong user stickiness, which has a significant effect on the replacement of traditional toilets.
According to data from the Tmall Home Improvement Industry and the Tmall New Product Innovation Center (TMIC), seat heating and automatic cleaning functions are favoured by consumers as high as 90% and 82% respectively.

b. The price drop promotes the expansion of potential consumer groups
In recent years, Chinese brands have continued to carry out product iterations and functional upgrades. On the one hand, they have improved products for different home environments, such as setting no water pressure restrictions for old buildings or high-rise residential buildings, such as the latest smart toilet integrated machine. Compared with the simplified version, the flagship version has 15 more functions such as foam shield splash protection, voice control, automatic flip, and water pressure adjustment.
Therefore, as the technology of my country's smart toilet industry continues to make new breakthroughs, the market cost advantage is gradually reflected, and the price band of smart all-in-one machines and smart toilet covers is slowly moving down, which will promote the sinking market penetration of the smart toilet industry and accelerate potential consumer customers. group expansion.

c. China's smart toilet brands are deployed in multi-channels such as hardcover and e-commerce
Enterprises related to smart toilets have deployed in multi-channels such as hardcover and e-commerce and grasped multiple traffic entrances. For example, in terms of hardcover channels, the number of smart toilets will be 416,100 sets in 2022, and the matching rate will further increase to 28.5%; in terms of e-commerce channels, consumers can purchase online according to product parameters, which is in line with consumers' consumption habits. In 2021, online sales of smart toilets will account for 32%.

d. Supporting installation and after-sales service of Chinese brands are gradually improved
The consumption experience of smart toilets includes two aspects of "product + service". In recent years, Chinese brands have rapidly deployed sales and service centres in various places and allocated relevant service personnel to quickly respond to customer needs. At present, most brands provide free on-site installation and after-sales service. The average warranty period for leading domestic brands is 5 years, which is longer than the average level of 3 years for foreign brands, providing consumers with longer after-sales service.

3. Market analysis: China's smart toilet market exceeds 20 billion, and the penetration rate has a large room for improvement

a. Compared with developed countries, the development of China's smart toilet market is in its infancy, and the penetration rate has a large room for improvement
According to the "White Paper on the Development of China's Smart Toilet Industry", the penetration rate of smart toilets in China will only be around 4% in 2021, while the penetration rates of smart toilets in Japan, South Korea, and the United States will be as high as 90%, 60%, and 60%, respectively. It can be seen that the penetration rate of China's smart toilet industry is low and there is a lot of space, and the market development is in its infancy.

b. In 2025, China's smart toilet market is expected to exceed 30 billion
According to the compound annual growth rate of smart toilet sales in China from 2020 to 2022 of 10.7%, it is assumed that the sales growth rate of smart toilets in cities and towns will be 15%, 15%, and 12% in 2023-2025, and the update rate will be 3%, and with reference to smart toilets in the past five years The average price of the cover and the all-in-one machine, assuming that the unit price of each smart toilet is 2,250 yuan. Therefore, according to calculations based on relevant data, the market size of smart toilets in my country is expected to reach 33.7 billion yuan in 2025, with a compound growth rate of 15.84% from 2021 to 2025.