about the sex toys industry, another 100 billion market supported by young people?

The female sex brand "Adult Candy", the new retail brand "Love Heart", and the trendy fun brand "SauceDesign Irrational" all received new financing in the first three quarters of this year.

Among them, "Adult Candy" has the most outstanding financing results. On September 7 this year, it announced the completion of 250 million yuan in Series A financing. The investment institutions are Fortune Ventures and IDG Capital.

The new retail brand "Love Heart" and the adult toy brand "Pink Punch" are tied for second place in terms of disclosed financing. Love Heart, which focuses on the new retail of sex toys in the hotel scene, received tens of millions of A+ rounds of financing in March this year.

What attracts more market attention is that in July this year, "Zui Qingfeng" submitted a prospectus to the Shenzhen Stock Exchange, which triggered a wave of heated discussions in the market about "the first stock of sex toys".

Capital is hot, many brands have completed financing, and more brands have sprinted into the capital market. All kinds of information reflect the high popularity of the sex toys market.

02 List of consumption scenarios of sex toys

The high popularity of the sex toys market directly reflects the strong market supply and demand relationship, and the demand for the sex toys market has grown significantly.

With the rapid development of China's economy over the years, people's living standards have improved year by year, and people have paid more and more attention to the improvement of their quality of life, which of course includes the emphasis on the private space and time of both sexes.

In addition, factors such as the third population peak entering adolescence, marriage and love period, family miniaturization and late marriage and childbearing, especially under the influence of concepts such as single economy and self-pleasure economy, have promoted the development of the sex toys market.

So, who are the main consumer groups of sex toys?

According to a survey by the new economic research institute iiMedia Research, in 2020, the proportion of Chinese male consumption of sex toys will be as high as 68.3%, nearly 70%. Among them, the proportion of consumer groups in first- and second-tier cities is relatively high.

The main consumer groups of sex toys are single people, and their consumption frequency is high. Half of the single groups consume sex toys at least once a month.

It is worth noting that in recent years, women's consumption demand for sex toys is increasing.

For example, the sex toy brand "Adult Candy" has launched a variety of products focusing on women's needs, and has also hired female stars to endorse, which once aroused market attention and heated discussions.

03 Young people fall in love with sex toys

Rejuvenation is the main theme of the current consumer market, and for the sex toys industry, the trend of rejuvenation is also obvious.

According to the Analysys Think Tank report, the post-85s and post-90s are the main consumers of online sex toys.

In the sex toys industry, "the post-80s spend the most money, they are the big moneymakers, and the post-90s have the widest consumer group and are the main force." One said.

From the perspective of new products, the reason why sex toys can attract young consumers to buy can be interpreted from three aspects: product enrichment, concept change and purchase channel enrichment.

First of all, the variety of sex toys is becoming more and more abundant.

Sex toys have gradually developed from the original family planning products to all kinds of sex toys, with more categories and rich functions.

Especially in recent years, many intelligent sex toys have appeared on the market, and many young consumers are also willing to try and buy.

Secondly, the concept of consumption of sex toys has changed, and the era of "talking about sex and color change" has passed.

The concept of consumption drives consumers to generate purchasing behavior, and the same is true for the consumption of sex toys. Nowadays, people's cognition of the consumption of sex toys has changed significantly, and they are holding an open mind.

According to a market survey, 34.82% of respondents said they wanted to try sex toys, 28.13% thought they were pleasing, and 27.23% of respondents maintained a neutral attitude towards sex toys, with less than 10% of users. Rejection.

Most of the respondents' users' views on sex toys are relatively objective and positive, indicating that in the Internet age, adults have relatively open attitudes about sex, especially young people are willing to try sex toys.

The third is that there are multiple shopping channels for sex toys, especially e-commerce shopping is convenient for users to buy.

In the era of no Internet e-commerce, people can only buy sex toys in offline stores. Later, with the rise of e-commerce, e-commerce channels not only have more product choices, but also protect privacy.

After years of development, the online sales model of sex toys has become very mature. Especially in recent years, the rise of social e-commerce and hobby e-commerce has further driven the consumption of sex toys.

It is worth noting that among the consumers of sex toys, young people not only account for a high proportion, but also consume more per capita than other age groups.

For example, in 2019, young people born in 1995 in various tier cities are willing to buy inflatable dolls as companions. Especially in the consumption of physical dolls, young people in tier 1 cities are more willing to spend a lot of money. The per capita consumption of physical dolls is low-tier. 1.6 times the city.

It is foreseeable that the search performance of the post-95s and pre-80s is higher than that of other generations, and the growth rate of their population consumption continues to increase, and it is expected that there is huge room for growth.

Therefore, from the perspective of the main consumer groups and future consumption prospects, it is not an exaggeration to say that young people support the consumption market of sex toys.

04 The future of the sex toys industry is promising

China's sex toys market is growing into a large market of 100 billion, and the whole market is heating up.

According to the report data released by Zhongyan Puhua, the scale of China's adult products market will exceed 100 billion yuan in 2020, of which the size of the sex e-commerce market will exceed 60 billion yuan.

So, is the sex toy market, which is touted by capital, a good business?

According to the data of listed companies in the sex toys industry, such as Chunshuitang, Taohuawu, Ailu Health and other companies, although they maintain a net profit margin of more than 40%, they are still in a state of loss.

The main reason for this is that the relevant departments have clear regulations and restrictions on the industry site, resulting in corresponding high sales expenses.

At the same time, we should also pay attention to the fact that there has been serious product homogeneity in China's sex toys industry, and the industry competition is fierce. Whether it is an old sex toy brand or a new force in the industry, the competitive pressure is not small.

As China's sex toys market enters a mature stage of development in the future, the trend of popularization of the industry is obvious. For example, the number of online sex toys consumers is increasing, and the per capita consumption is also increasing.

The market predicts that the next two to three years will be the next round of financing peak period for China's sex toys market.