Chinese home furnishings maker Arrow Home Group is accelerating its international expansion, betting on smart technology and localized innovation to capture growing demand in key global markets, including the United States and Europe, as well as emerging markets like Southeast Asia.

The company, whose diverse range of products includes smart toilets, high-end ceramic bathroom accessories, ceramic tiles, and whole-house customized furniture, aims to ride the wave of favorable trends that are set to buoy demand for smart living products.

The global smart toilet market is undergoing rapid transformation, and market research and consulting firm Grand View Research is forecasting it to register a compound annual growth rate (CAGR) in double digits as consumer consciousness regarding cleanliness and hygiene increases.

According to Grand View Research, the global smart toilet market size was valued at $9.57 billion in 2023, and is projected to grow at a CAGR of 12.6 percent from 2024 to 2030.

Against this backdrop, Arrow is positioning itself as a key player in the global shift toward intelligent home solutions. Boosting the appeal of smart toilets, for example, are advanced features, including ergonomic design, heated seats and automated flushing.

"As a Chinese home brand, Arrow has built a strong foundation in the domestic market through superior quality, innovative design and cutting-edge technology," said Xie Wei, vice-president of Arrow Home Group.

"Now, we are venturing into international markets with the vision of 'China Smart Manufacturing' — not only to bring reliable and user-friendly products to global consumers, but also to showcase China's strength in intelligent and technology-driven home solutions."

To maintain a competitive edge, Arrow is employing a dual-track strategy of global research and development, plus local innovation.

The company operates eight global research centers focused on standardization and frontier innovations such as the internet of things technology, while regional teams tailor products to local needs.

"In Southeast Asia, where humidity and high temperatures are common, we are enhancing moisture-proof and anti-mold features," Xie said. "For the European market, we emphasize energy-saving designs and minimalist aesthetics to better align with local consumer preferences."

A key pillar of Arrow's strategy is leveraging China's vast market scale, agile research and development capabilities, and complete industrial chain to establish a vertically integrated global ecosystem.

The company's localized production and fast delivery networks — such as manufacturing bases in Vietnam and Thailand — allow it to respond swiftly to regional demand while optimizing costs.

In fact, Vietnam has emerged as a strategic focal point for Arrow's expansion, driven by the country's increasing urbanization and rising demand for mid-range sanitary products.

Citing third-party market research, Xie said new housing demand in Vietnam is expected to exceed 800,000 units by 2025, presenting significant opportunities for Arrow.

To capture this growth, Arrow is strengthening partnerships with major Vietnamese firms such as DASH Group and Lotus. These collaborations enable the brand to tap into well-established distribution channels and gain deeper market penetration.

On Feb 26, Arrow launched its first Vietnam flagship store in Ho Chi Minh City, covering 1,000 square meters. During the opening, the company introduced new smart bathroom products, including the H2 ergonomic smart wall-hung toilet and the X7 ZOOM intelligent toilet.

"Our research shows that Vietnamese consumers prioritize ergonomic comfort and smart usability in bathroom products," Xie said. "The H2 toilet's specially designed seat enhances user comfort, while the X7's antibacterial features cater to Vietnam's humid climate."

While Arrow is scaling up internationally, it remains attuned to shifting dynamics in China's home furnishings sector. The domestic market is experiencing a transformation due to a slowdown in new home sales and a surge in renovation-driven demand.

Citing industry estimates, Xie said the market size of China's renovation of old urban residential communities is projected to hit over 700 billion yuan ($96.7 billion) through 2025.

To capitalize on this anticipated growth, Arrow has launched a "Smart Home Renewal 3.0" service to cater to the rising demand for intelligent, eco-friendly and personalized home upgrades. The initiative integrates end-to-end solutions, from design and demolition to installation and after-sales support, minimizing household disruption during renovations.

As price competition intensifies and cost pressures rise, Arrow is doubling down on smart toilets, water-saving technologies, and new retail strategies to solidify its market position.

Despite facing pressures from the correction in the real estate sector and sluggish consumer sentiment, Zhu Jun, vice-president of the China Household Electrical Appliances Association, said the market will likely see improved performance with the government's intensified efforts to spur consumption, such as the consumer goods trade-in program.

A report compiled by the association showed that China's annual production of smart toilets rose 8.2 percent year-on-year to 12.65 million units in 2023, with the total output exceeding 10 million units for three consecutive years.

In 2023, China's share accounted for 69 percent of global smart toilet output, solidifying China's position as the world's largest smart toilet manufacturer, the report said.