XiaoTong Column · 2025-06-28

Risk Compass”Smart toilet in China”

I. Industry Risk Analysis

(1) Policy Risk

Observing from the evolution of the policy lifecycle, the intelligent toilet industry faces multiple policy risks: During the policy – making stage, more stringent mandatory standards for water conservation and electrical safety may be introduced, forcing enterprises to transform their production lines; during the policy implementation stage, the supervision of energy – efficiency label filing and certification will be strengthened, and the extended product certification cycle will affect the listing speed of new products; during the policy adjustment stage, the scope of compliance review for new technologies such as AI data collection may be expanded, increasing the compliance cost for privacy protection; the expiration or change of the promotion and subsidy policies of some local governments will lead to a shrinkage in the profits of projects that previously enjoyed policy dividends. Entrepreneurs need to be vigilant about the compliance risk window period caused by the mismatch between the policy iteration speed and the industrial technology R & D cycle.

(2) Economic Risk

The intelligent toilet industry currently faces the risk of consumption contraction brought about by the economic downturn cycle. The weak demand in the real – estate market has led to a decline in new decoration demand, directly affecting the terminal sales of products; the prices of upstream raw materials have risen periodically due to global economic fluctuations, intensifying the cost pressure on enterprises. The over – expansion of production capacity in the early stage of the industry has led to oversupply, and the price war has continuously squeezed the profit margin; when consumer confidence is insufficient, they tend to reduce non – essential high – price home improvement expenses. Coupled with the extended technology iteration cycle, the risk of recovering R & D investment for enterprises has increased, and the cash – flow pressure has significantly increased.

(3) Social Risk

The intelligent toilet industry faces the social risk of a generational gap in consumption concepts: The young group pursues intelligent experiences but has insufficient economic accumulation. The middle – aged group has the consumption ability but is skeptical about the health management and data privacy functions of emerging products. The elderly group is more difficult to accept due to price sensitivity and operational complexity; at the same time, the differences in the value perception of bathroom products among different generations lead to high market education costs. It is difficult to form a unified product iteration path, and it is easy to cause the contradiction between over – advanced technology and unbalanced practicality, increasing the uncertainty of emerging brands in cross – generational market penetration.

(4) Legal Risk

In the intelligent toilet industry, entrepreneurs need to be vigilant about three major legal risks: product safety, data privacy, and false publicity. If a product fails to pass the national mandatory certification (such as electrical safety/waterproof standards), it will trigger liability under the Product Quality Law; if the human health data collected by intelligent devices violates the storage and use regulations of the Personal Information Protection Law, it may face high – value fines; claiming medical effects such as “treating hemorrhoids” will constitute false publicity prohibited by the Advertising Law. At the same time, patent infringement disputes are highly prevalent in the fields of intelligent flushing and heating technologies.

II. Entrepreneurship Guide

(1) Suggestions on Entrepreneurial Opportunities

The current entrepreneurial opportunities in the intelligent toilet industry are concentrated in health monitoring (such as urine testing and body fat analysis), aging – friendly design (anti – slip handrails and voice control), R & D of low – water – pressure adaptation technology (solving the pain points of old communities), integration of intelligent ecosystems (connecting to mainstream smart home platforms), innovation in distribution channels for the sinking market (joint promotion with home decoration companies), supporting urban renovation projects (bulk replacement of traditional toilets), application of environmentally friendly materials (degradable nozzle covers), customization of personalized flushing modes (based on user physiological data), development of special models for small – sized apartments (targeting apartment products), and establishment of a regional rapid – response after – sales service system (48 – hour fault handling + consumables delivery).

(2) Suggestions on Entrepreneurial Resources

Entrepreneurs in the intelligent toilet industry should focus on the integration of core resources: First, cooperate with mature bathroom supply – chain enterprises to obtain technical support and production – capacity guarantee. Jointly develop IoT modules with smart home solution providers to reduce R & D costs. Connect with local intelligent bathroom industrial parks to obtain policy subsidies and industrial – chain resources. Establish initial market channels through strategic cooperation with high – end home – decoration channels. At the same time, introduce technical partners and supply – chain management talents with experience in the home – appliance industry to improve the team’s capabilities. Focus on obtaining support from industrial capital with a home – appliance background to meet the requirements of long – cycle product certification.

(3) Suggestions on the Entrepreneurial Team

Entrepreneurs in the intelligent toilet industry need to build a cross – domain and composite team: The founder should ensure that core members have three core capabilities: intelligent hardware R & D (such as IoT technology and sensor development), supply – chain management in the bathroom industry, and user – experience design. At the same time, members familiar with home – channel operations should be included. It is recommended to adopt a “golden triangle” structure of “technical backbones + industry veterans + new – retail operators”. The technical team should include at least two holders of intelligent bathroom patents. Supply – chain members should have more than five years of experience in ceramic or hardware manufacturing. Market – operation talents with experience in the intelligent transformation of the home – appliance industry should be introduced. Team members need to participate in production – line operations (at least eight hours per month) and user – experience follow – up regularly to keep their technical sensitivity and market insight updated simultaneously.

(4) Suggestions on Entrepreneurial Risks

Entrepreneurs in the intelligent toilet industry need to focus on controlling risks in technology R & D, compliance, and the supply chain: First, cooperate with universities or mature manufacturers to develop core heating and sterilization modules, shorten the R & D cycle, and reduce the risk of patent infringement; strictly follow the GB/T 34549 – 2017 intelligent toilet standard and complete 12 mandatory tests such as electrical safety and water – conservation certification; lock in core suppliers such as ceramic bodies and chip modules by signing three – year price – guarantee agreements, and develop 2 – 3 alternative suppliers simultaneously; develop functions such as one – key knob control and anti – accidental – touch for the elderly’s toilet – using scenarios to form a differentiated competition with mainstream brands; adopt a combined channel of “live – streaming product tests + offline experience stores” to penetrate the replacement market for existing toilets in third – and fourth – tier cities; establish a cloud – based fault – early – warning system and stock up on vulnerable parts in advance to reduce after – sales response costs.

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