The British “Financial Times” published an article on August 3 titled: Smart toilets will become a yardstick for measuring China’s economic resilience
Goldman Sachs believes in its research report that smart toilets will soon be accepted by Chinese culture. The toilet is regarded as a “safe and comfortable self-space” in China.
In China, although interest in smart toilets has been dominated by middle-aged women over the past decade, the next phase is expected to attract more young buyers. The beneficiaries will be cheaper and less sophisticated products from domestic Chinese sanitary ware companies, rather than high-priced products from foreign companies such as Japan’s TOTO, which is in line with the trend that has emerged in many industries in China.
Goldman Sachs predicts that the penetration rate of smart toilets in China will rise from 4% in 2022 to 11% in 2026, when the total revenue of China’s sanitary ware industry will reach US$21 billion per year. The Goldman Sachs analysis has raised concerns beyond the growth of China’s smart toilet penetration rate. With its complex cultural and technical attributes, the product reflects the consumption situation of China’s middle-income group and is linked to the development of China’s economy.
Andy Rothman, an investment strategist at Mingji International Investment Company, believes that it is wrong to underestimate the resilience of Chinese consumers and entrepreneurs and the pragmatic capabilities of decision-making institutions. Such optimism supports the view that smart toilet penetration will rise.
Although the current low consumer demand is due to the new Cold War between China and the United States and China’s domestic economic downturn, this will only temporarily affect the pursuit of high-quality life and the demand for home upgrades by the middle-income group in China. Especially under the influence of the idea of not getting married and not having children, which is prevalent among young people in China, young people pay more attention to their quality of life, and they are also a huge potential consumer group. And under the influence of manufacturers’ price wars, the price of smart toilets in China is very cheap, and it may become cheaper in the future as the market expands. Goldman Sachs predicts that between now and 2026, the price of low-end smart toilets in the Chinese market will drop by 20%.
Post time: Aug-05-2023