Bathroom Products: Navigating the Expanding Market Landscape

2025-02-24

The market prospect of bathroom products is quite broad. The following is a detailed analysis:

一、Favorable Factors

1. Policy Support Creates Market Opportunities:

National subsidy policies such as the "trade-in" program are being strengthened and expanded. For instance, regions like Hubei, Guangdong, and Henan have launched the registration work for businesses to receive national subsidies in 2025, and small and medium-sized kitchen and bathroom merchants have been included in the eligibility. This will stimulate consumers to purchase bathroom products, bringing dividends to the market.

2. Strong Demand for Stock Housing Renovation:

Statistics from the Ministry of Housing and Urban-Rural Development, Ke Holdings Inc., etc. show that there are 270 million residential properties in China that are over 20 years old. Given that the general service life of bathroom products is around 8 years, the market for the redecoration of stock housing, represented by secondary renovations and aging-friendly transformations, will drive the growth of the bathroom market.

3. Integration of Whole Home Expands Channels:

Under the trend of comprehensive whole home integration, bathroom manufacturers are evolving towards full bathroom customization and whole house customization businesses, attracting cross-border participation from non-professional bathroom dealers. For example, the Guangzhou Bathroom Expo in 2025 will form a complementary resource relationship with the whole home customization exhibition area of the Guangzhou Construction Expo, expanding the investment promotion channels for bathroom brands.

4. Going Global Brings New Growth Points:

Against the backdrop of industrial transfer, domestic bathroom products have good opportunities to go global. In the first half of 2024, the overseas revenue of ARROW Home Furnishing increased by a remarkable 178%. JOMOO has opened new stores in multiple countries. Regions such as Southeast Asia, Africa, Europe, and America show great interest in Chinese bathroom products, and many blank markets around the world are yet to be developed.

5. Diversified Customer Acquisition through Emerging Channels:

With the diversification of channels, decoration companies, designers, e-commerce platforms, etc. have become new channels for customer acquisition. In 2023, the home decoration revenue of ARROW increased by 9% to exceed 1.1 billion yuan. Huida Sanitary Ware has cooperated with 976 decoration companies. More than 20% of the houses nationwide are decorated by independent designers and design institutions, and in some bathroom stores, more than half of the orders are for design and material selection.

6. Huge Potential of Smart Bathrooms:

Smart bathroom products are becoming increasingly popular. However, the penetration rate of smart products in China is relatively low. Compared with the 60% penetration rate of smart toilets in the markets of the United States, Japan, and South Korea, the rate in China is less than 10%. Data from Aoweiyun.com shows that from January to July 2024, the number of smart toilet projects and the configuration rate in the refined decoration market increased by 16% and 14% respectively year-on-year, with an obvious growth trend.

7. Brand Changes in the Public Construction Market:

Domestic bathroom brands are gradually showing their advantages in terms of quality, price, service, etc. Domestic brands such as JOMOO, ARROW, HEGII and RAGNHIL are gradually increasing their market share in the bathroom products market of newly opened real estate projects with refined decoration. Coupled with the expansion of centralized procurement orders for commercial public construction projects such as hotels, schools, hospitals, and office buildings, it will drive changes in the brand landscape of the public construction market.

8. Upgrading of Consumer Demand:

People have higher requirements for the quality of life. The bathroom space is no longer just a basic functional area but has become an enjoyable space for pursuing comfort and relaxation. Consumers are willing to pay for high-quality, intelligent, and beautifully designed bathroom products, promoting the development of products towards high-end, intelligent, and personalized directions. 1 (3).jpg

二、Challenges

1. Fierce Market Competition:

There are numerous domestic and international brands, leading to intense competition. International brands such as Kohler and TOTO have brand and technological advantages. Domestic brands like ARROW and RAGNHIL are also constantly developing, and at the same time, emerging brands are constantly emerging, resulting in great pressure in the market competition.

2. Increased Consumer Requirements:

Consumers have higher and higher requirements for various aspects of bathroom products, including quality, function, design, environmental protection, brand, and after-sales service. Enterprises need to improve in multiple aspects to meet market demands.

3. Fluctuations in the Real Estate Market:

Although the stock housing market brings opportunities, overall fluctuations in the real estate market still have a certain impact on the demand for bathroom products. The sales situation of new houses will affect the supporting demand for bathroom products in newly built residential properties.

In summary, the market prospects of bathroom products present both opportunities and challenges. Although fierce competition, increased consumer demands, and fluctuations in the real estate market bring significant pressure, policy support, diverse market demands, and the application of emerging technologies also open up broad spaces for the development of the industry. For bathroom enterprises, seizing opportunities, continuously making efforts in innovative research and development, brand building, and channel expansion, and improving product quality and service levels will be the keys to standing out in this promising market. It is believed that with the joint efforts of all parties, the bathroom product market will achieve high - quality and sustainable development in the future while meeting consumers' growing needs for a better life, contributing more to the prosperity of the home furnishing industry.