Toto Targets U.S. as China Sales Slump

USA/Japan: Leading Japanese sanitaryware maker, Toto, is setting its sights on a major expansion in the United States. They aim to double their sales of Washlet bidet seats and toilets in the U.S. by volume within the next three years (by fiscal 2026). This strategic move comes as China, a previously strong market for Toto, experiences a slowdown in demand due to a prolonged slump in the property market. The U.S., along with the rest of North America, is now considered a key growth area for Toto under their current three-year plan. This is a significant shift, as established markets like China and Japan are now seen as stable sources of revenue. To support this expansion, Toto plans to invest heavily in North America and other parts of Asia, with a minimum commitment of 20 billion yen (approximately USD 128 million).

By 2026, Toto expects the U.S. to become a major contributor to their overseas sales, potentially surpassing even China. Their ambitious goal is for the U.S. market to account for 36% of their overseas revenue, driven by a projected annual growth rate of 19%. This translates to an estimated revenue of 99 billion yen by 2026, placing the U.S. ahead of China's projected 97 billion yen that year.

Source: Nikkei Asia