But where Guo, who is 35, sometimes falls short in imagination, he more than makes up for in vigilance. “Users expect and deserve products that meet stringent safety standards, and any deviation can damage a brand’s reputation irrevocably,” he posted in an XBIZ editorial in September. “Partner with trusted white-label manufacturers rather than gamble on the unknowns.”
When I ask Guo about the editorial, he stresses that the success of sex tech is determined as much by the innovation involved in the products as the quality. “We want to be more of a bridge from human to human,” Guo says, “not just from toy to human.”
Even with promising market projections—another estimate goes so far as to predict sales could surpass $121 billion by 2030—industry analysts are not convinced that the future of sex tech is in toys.
It’s a “very oversaturated market that is now avoided by many,” says Olena Petrosyuk, a partner at the consulting firm Waveup. This year, she adds, investors “are looking away from ‘commoditized’ trends”—sex toys, but also sex content and social platforms. “Many failed to prove the economics and scale. The category is still fairly stigmatized,” she says. “OnlyFans being a massive exception.”
So what do consumers want? Petrosyuk says wellness, AI, and immersive realities are hot right now. “Practically every new sex tech startup is thinking in terms of AI use cases,” she says. “If it’s AI toys—companies are looking into how they can anticipate and respond to the user’s needs. If it’s robotics—we see companies looking into sex bots. If it’s content—it’s hyperpersonalized sex personas.”
Guo tells me he is not phased by talk of AI sex robots—“a low-volume business,” in his estimation—because many people cannot afford the high price tag. Continued success, he believes, is will come by expanding on the company’s themed collections. OEJ works directly with US and Canadian distributors; it is not a direct-to-consumer business, though he says customers do occasionally order via the online store.
Although ecommerce is the industry standard in retail and electronics, taking more of an old-school approach works for Guo. Next year, OEJ plans to launch a Zodiac collection, crafting 12 unique toys for each astrological sign. It’s an appeal to the Co–Star fanatics of Gen Z. “Every generation is different,” he says.
The company’s mostly nonexistent social media presence only seems to add to their Wonka-like mystery. “We’re just bad at it,” Jerry Chen, an operations assistant, says. “We’re really focused on production.”
For now, that business model seems to be a hit. Our Erotic Journey recently won the “Best Pleasure Product Manufacturer—Small” prize at the 2023–2024 AVN Awards in Las Vegas, a litmus test for newbie brands in the adult content world. OEJ also received the O Award for Outstanding New Product for “Sexy Pot,” Guo’s marijuana-leaf-shaped vibrator, a customer favorite.
Clearly wanting to capitalize on its unexpected success, Guo says, “It’s time we gave it a sister or brother.”