Policy dividends are reshaping the underlying logic of China’s bathroom consumption. From about RMB 300 billion in ultra-long-term special treasury bonds boosting “trade-in” programs in 2024, to nationwide home kitchen & bath “renovation” subsidies rolling out in 2025 — with smart toilets and sanitary ware widely included — bathroom consumption has officially entered a new, policy-driven cycle.

1. A Policy Engine Backed by Real Money

In July 2024, the National Development and Reform Commission issued “Measures to Strengthen Support for Large-Scale Equipment Renewal and Consumer Goods Trade-In,” which, together with the State Council action plan, became the main engine of the second-half “trade-in” consumption. In 2025, local subsidies took concrete shape: Sichuan caps individual cumulative subsidies at RMB 4,000, while Ningde offers up to RMB 2,000 per order and RMB 10,000 cumulative. Subsidies generally focus on “green, smart and age-friendly” directions, with smart toilets and water-saving sanitary ware as priority categories.

2. An Industry Adjustment Behind the Numbers

Policy support arrives just as the industry consolidates. According to AVC data, after years of rapid growth, smart toilets entered a correction: online retail sales in 2024 reached about RMB 5.68 billion, down 17% year-on-year, with volume of 2.67 million units; institutions forecast 2025 online sales of about RMB 4.81 billion, down a further 13.7%. The industry widely believes the “trade-in” subsidies will support the market and catalyze renovation demand in existing homes and aging bathrooms.

3. Consumer Upgrade from “Workable” to “Delightful”

Behind the trade-in push is an upgrade in consumer mindset — people no longer settle for “workable” but pursue “delightful.” According to Ocean Engine’s “2024 Bathroom Industry White Paper,” the average budget for bathroom renovation is about RMB 37,300, with consumers valuing real experience and cost-performance. Green water-saving features, smart functions and durable materials have become purchase keywords — directly benefiting manufacturers with solid product strength.

4. Renovation of Existing Homes: A New Opportunity for Manufacturing

Trade-in-driven replacement demand is shifting the market focus from new-home installations to existing-home renovation. For core components such as faucets and cartridges, this means steady replacement and supporting demand, while raising the bar for standardization, durability and ease of installation.

5. FangHong: Serving Every Renovation Scenario

FangHong’s product line covers mainstream specifications for both new and existing installations — basin faucets, kitchen faucets, shower systems and push-and-turn cartridges — flexibly meeting OEM/ODM needs in replacement and renovation scenarios. Whether it is the subsidy-driven replacement wave or hotel and apartment batch renovations, FangHong combines stable quality with flexible delivery to grasp this new consumption cycle with our partners.

Outlook

The policy direction is clear and resolute — green, smart and age-friendly. For sanitary ware enterprises, understanding policy, making great products and serving the existing-home market are the keys to winning in a cycle shift. FangHong is ready.