Trade fairs in China, the largest country in terms of sex toys consumption conduct annual trade fairs for sex toys. For example, the Adult-Care Exhibition is held on a yearly basis in Shanghai; it provides an opportunity for vendors worldwide, including those from countries such as the US, South Korea, Hong Kong, and Sweden, to display their product portfolio along with new innovations related to adult toys. Vendors also provide educational benefits of using sex toys along with several AV models (porn stars) creating visibility and helping to reach out to more consumers.
Competitive vendor landscape
The market is highly fragmented with the presence of several vendors providing products in this category. The high growth rate and great market potential have been attracting many new entrants as well as investors over the past couple of years, and this trend is expected to continue over the forecast period. The competition between these vendors is fierce and has led to exponential product innovation over the recent years. Although the top vendors are spread throughout the globe, the highest number of new vendors in this product segment has been emerging from China.
“Market players compete in terms of price, quality, innovation, features, service, reputation, distribution, and promotion. Vendors in the market make their brands available on websites and outlet stores’ shelves. This also improves the market standards as poor-performing companies are forced to consolidate or exit. Players in the market usually design and prototype their products in the US and manufacture them in China,” says Amber Chourasia, a lead health and wellness analyst from Technavio.
Vendors are increasingly directing their marketing efforts toward creating category and brand awareness. Most players deal with one category and then expand and cater to a very specific target audience. Reaching out to consumers and making them comfortable with the idea of buying these products are the major challenges in the market.