Internet of Things (IoT) is regarded as a remarkable development of the modern information technology. There is abundant digital products data on the IoT, linking with multiple types of objects/entities. Those associated entities carry rich information and usually in the form of query records. Therefore, constructing high quality topic hierarchies that can capture the term distribution of each product record enables us to better understand users’ search intent and benefits tasks such as taxonomy construction, recommendation systems, and other communications solutions for the future IoT. In this paper, we propose a novel record entity topic model (RETM) for IoT environment that is associated with a set of entities and records and a Gibbs sampling-based algorithm is proposed to learn the model. We conduct extensive experiments on real-world datasets and compare our approach with existing methods to demonstrate the advantage of our approach.