China’s intelligent toilet industry is booming and is still in the dividend period. It is expected that with the increase of penetration rate, the industry is expected to usher in rapid development and highlight the investment value. Therefore, this article is an in-depth study on the intelligent toilet industry after Xiamen R&T Plumbing Technology Co.Ltd(002790) in-depth report. We will objectively analyze the problems most concerned by investors in the form of five questions and five answers, Further explore the investment value of the industry.
I. why is the smart toilet industry booming?
In recent years, with the rapid development of China’s economy, the per capita disposable income of urban residents has continued to grow, the consumption capacity of Chinese people has improved, and they are able to pay the consumption price of smart toilets. The downward trend of superimposed price is obvious, the popularization trend of double category low price is obvious, and the popularization of intelligent toilet promotes the growth of industry demand. With the rapid development of China’s e-commerce, the e-commerce channel has gradually become the main sales channel of China’s intelligent toilet, and the online sales volume has increased rapidly. China’s post-85s, post-90s and other new consumers have gradually become the main force of consumption. Smart toilet manufacturers have gradually shifted their focus to individual family users in terms of technological breakthrough and product demand design, and the key areas of market promotion have also shifted to individual consumers, making the application of smart toilets in individual families more common. Consumption upgrading reflects the improvement of manufacturing quality in China. Domestic consumption promotes the transformation of the market. The supply of domestic brand products is gradually mature, with higher cost performance and continuous upgrading of intelligence. In addition, the emergence of intelligent toilets has greatly improved the health problems of the elderly, benefiting from the intensification of population aging, the intelligent upgrading of toilet decoration and the promotion of hardcover market, and the high demand for intelligent toilets. In addition, China’s macro environmental policies for the development of intelligent toilet industry, industry promotion, market supervision and other important links have been increasingly improved. The epidemic situation awakens consumers’ health awareness, and various enhanced sterilization functions of intelligent toilets are deeply sought after by the market. Under the joint of many factors, we believe that the high prosperity of the smart toilet industry will continue.
II. How much space does China’s intelligent toilet industry have?
At present, the sales of intelligent toilet all-in-one machine and intelligent toilet cover in Chinese channels are concentrated below 3000 yuan and 1500 yuan respectively. According to the survey data of huge number of small household appliance consumers, the higher the income, the higher the attention to the intelligent toilet. In addition to brand quality, appearance and service are also important factors for consumers to measure. We estimate that the annual demand for toilets in China is about 60 million (including residential, hotel, office, public, etc.). According to the current annual sales volume of about 5 million intelligent toilets, the annual penetration rate is about 8% – 9%, and if it is maintained, the penetration rate is less than 3%. We expect that in the medium term (5-10 years), the overall penetration rate of intelligent toilet in the toilet will reach about 20%, which is 2-3 times larger than the current estimate. According to the average terminal price of 3000 yuan / set, the medium-term space of the industry is estimated to be between 35-40 billion yuan (vs. the current market scale of about 15 billion yuan).
III. Where are the competitive barriers of the intelligent toilet industry? How is China’s competitive landscape?
China’s intelligent toilet industry is in a high boom stage of development, with huge market demand potential and huge market space, prompting the gradual increase of participants. However, due to the complex technology of intelligent toilet, involving water, electricity, heating, machinery, sensing, injection molding, welding and other fields, the industry competition barriers are mainly reflected in the basic safety quality & high performance quality, R & D and testing Channel, brand and other multidimensional aspects. In terms of the industry, there are few supporting enterprises and the entry threshold is high. The production capacity mainly comes from three types of enterprises: sanitary ware, household appliances and professional electronic appliances. At present, the competition pattern of the industry has not been formed. With the intensification of competition, the requirements for the company’s product quality, R & D strength and channel layout continue to improve, the advantages of leading enterprises will gradually appear, and the industry concentration is expected to continue to improve.
IV. what overseas experience can be used for reference?
Japan (80% +), South Korea (60% +) and China are located in the East Asian circle and have a sense of ritual and cultural significance of cleaning themselves in addition to basic health needs. The rise and development of smart toilets in Japan and South Korea are inseparable from the advanced pursuit of life ritual and personal hygiene by the people of Japan and South Korea after the economic foundation has developed to a certain extent, as well as the improvement and maturity of relevant enterprises (such as toto) in technology and quality. The same demand will also appear on the land of China with rapid economic development. China’s first tier cities are Beijing, Shanghai, Guangzhou and Shenzhen. With the development of economy and the improvement of consumer awareness, the penetration rate of intelligent toilets is slowly increasing. Compared with developed countries, China’s urban rate and per capita GDP are still a certain distance. Even in terms of the number of toilets, China is also a distance from developed regions, which is only higher than the average level in the Asia Pacific region. In addition to the degree of economic development, health education is also a factor affecting the penetration of intelligent sanitary ware. China’s consumption expenditure on housing and household fuel is increasing year by year, while Japan and South Korea have a downward trend. In the future, with the development of urbanization, consumer demand will increase to high-end products, and intelligent toilets will have great development prospects and space in the Chinese market.
V. who will be the long-distance champion of the intelligent toilet industry? Are there opportunities for domestic products?
1) brand side: brand power & Marketing & channel is the key. American, Japanese, German and other brands occupy the high-end market, and the main distribution channels are offline channels. However, domestic enterprises have flexible marketing methods, new and fast products that meet the living habits of Chinese people, and high product price performance price ratio. They continue to seize the minds of consumers. The market share is expected to gradually increase and continue to narrow the gap with foreign bathroom brands, It is expected that it will continue to benefit from industry dividends and its own advantages in products, R & D and channels in the future.
2) production side – OEM Enterprises: R & D strength & product quality or key. In addition, from the supply side, some bathroom brand smart toilet products adopt the OEM production mode, and the OEM is responsible for production, while the brand is responsible for marketing and other links. In the medium and long term, the smart toilet industry will focus on product quality and innovation. The OEM, especially the head OEM, has many years of OEM experience and outstanding R & D strength, which is expected to continue to benefit.
