But when Guo, 35, sometimes fails to think, he is more than cautious. “Users expect and deserve products that meet strict safety standards, and any deviation can irreversibly damage a brand’s reputation,” he wrote in an XBIZ editorial in September. “You’re partnering with trusted white label manufacturers rather than gambling with unknowns.”
When I ask Guo about planning, he emphasizes that the success of sex tech is determined as much by the innovation involved in the products as by the quality. “We want to be more of a bridge from person to person,” Guo said, “not just from toys to person.”
Even with promising market forecasts—some estimates go so far as to predict that sales could exceed $121 billion by 2030—industry analysts are not convinced that the future of sex technology is in toys.
“It’s an oversaturated market now that many people are holding back,” said Olena Petrosyuk, a partner at consulting firm Waveup. This year, he adds, investors are “not looking at the ‘commodity’ trend”—sex toys, but also sexual content and social media. “Many have failed to prove economics and quality. The class is still discriminated against,” he said. “Only the fans are very different.”
So what do consumers want? Petrosyuk says health, AI, and augmented reality are hot right now. “Virtually all new sex tech startups are thinking about AI use cases,” he said. “If AI toys—companies are looking at how to anticipate and respond to user needs. If it’s robots—we see companies looking at sex bots. If it’s contained—it’s gender-neutral people.”
Guo tells me he’s not phased by talk of AI sex robots—a “low-priced business,” in his estimation—because most people can’t afford the high price tag. Continued success, he believes, will come from expanding the company’s themed collections. OEJ works directly with US and Canadian distributors; it is not a direct-to-consumer business, even if customers order from time to time through an online store.
Although ecommerce is the standard for the retail and electronics industry, taking an old-school approach works for Guo. Next year, OEJ plans to launch the Zodiac collection, making 12 toys unique to each zodiac sign. It’s an appeal to Co-Star fans of Gen Z. “Every generation is different,” he says.
The company’s non-existent social media presence seems to add to their Wonka-like mystique. “We’re very sad about it,” said Jerry Chen, a surgical assistant. “We are very focused on production.”
For now, that business model seems to be taking a hit. Our Erotic Journey recently won the “Best Pleasure Product Manufacturer—Small” award at the 2023–2024 AVN Awards in Las Vegas, a litmus test for new products in the world of adult content. OEJ also received an O Award for Outstanding New Product for “Sexy Pot,” Guo’s marijuana leaf-shaped vibrator, a customer favorite.
Clearly looking to capitalize on his unexpected success, Guo says, “It’s time to give it to our sister or brother.”
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