Table of Contents
Executive Summary
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- The market
- A booming market with various types of players participating
- Higher anticipation on living environment and economies of scale drive growth
- The consumer
- Smart home appliances will compete on the level of automation
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- Figure 1: Functions of current home appliance and ‘must-have’ functions of smart home, August 2018
- Voice control is widely known but little used
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- Figure 2: Usage of and interest in voice control functions, August 2018
- Smart video appliances are owned most, while smart kitchen appliances don’t draw much interest
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- Figure 3: Smart home appliance ownership and interests, August 2018
- Consumers are more convenience-driven than technology-driven
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- Figure 4: Reasons for interest in smart home, August 2018
- More concern on price than privacy
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- Figure 5: Purchasing barriers of smart home devices, August 2018
- Information about smart home comes from browsing shopping
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- Figure 6: Information channels of smart home devices, August 2018
- What we think
Issues and Insights
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- A competition between product manufacturers and service providers
- The facts
- The implications
- Smart home for wider range of consumers
- The facts
- The implications
- Uncover the true meaning of value for money to bargain hunters and trend leaders
- The facts
- The implications
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- Figure 7: Mijia smart home function introduction, November 2018
The Market – What You Need to Know
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- Competition gets intense among four types of market players
- Booming market with drivers on both supply and demand sides
Market Overview
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- A fragmented market with players with divergent backgrounds
- Traditional manufacturers highlight their specialty
- Technology companies expanding their business in smart home industry
- Internet companies want their service to get used
- Internet carriers try to break through via routers and OTTs
Market Drivers
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- Desire for a safer, cleaner home environment drives purchase
- Economies of scale make smart home products accessible
- IoT, the fundamental part of a smart home, has been a national focus
The Consumer – What You Need to Know
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- Consumers see controlling and connection as most important, and they usually don’t use voice control
- Smart video appliances have become common
- Convenience is the biggest driver while high price is the biggest barrier
- E-commerce websites an information-sharing centre for smart home products
Must-have Smart Home Functions
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- Smart home means controlled and connected home
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- Figure 8: Functions of current home appliance and ‘must-have’ functions of smart home, August 2018
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- Figure 9: Functions of current home appliance and ‘must-have’ functions of smart home, by gender, August 2018
- Automatic adjustment is the key hook for smart home
- Premium factor: voice control and acting as a control hub
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- Figure 10: ‘Must-have’ functions of smart home, by household income, August 2018
- More tier one and northern consumers currently use smart home appliances to better cope with environment
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- Figure 11: Functions of current home appliance, by city tier, August 2018
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- Figure 12: Functions of current home appliance, by region, August 2018
Preferred Voice Control Function
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- Voice command is not yet widely used, especially for shopping
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- Figure 13: Usage of and interest in voice control functions, August 2018
- More parents are interested in using voice control functions
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- Figure 14: Usage of and interest in voice control functions, by presence of children in household, August 2018
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- Figure 15: Usage of and interest in reading stories or answering questions for children, by age, August 2018
Ownership and Interest in Purchases
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- Smart video appliances have become quite common
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- Figure 16: Smart home appliance ownership and interests, August 2018
- Smart kitchen appliances not yet realising their full potential
- Chinese consumers are more interested in smart home than consumers in Western markets
- Early users of niche smart home appliances: tier one and eastern consumers
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- Figure 17: Smart home appliance ownership, by city tier, August 2018
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- Figure 18: Smart home appliance ownership, by region, August 2018
Triggers to Purchase
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- Convenience outperforms curiosity
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- Figure 19: Reasons for being interested in smart home, August 2018
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- Figure 20: Reasons for being interested in smart home – TURF analysis – August 2018
- Technology breakthroughs weigh more than brand image
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- Figure 21: Selected reasons for being interested in smart home, by age, August 2018
- Parents anticipate features helping them to relieve and saving time
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- Figure 22: Selected reasons for being interested in smart home, by presence of children in household, August 2018
Barriers to Purchase
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- What drives disinterest in smart home, price or privacy?
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- Figure 23: Barriers to purchasing smart home devices, August 2018
- Consumers with middle household income level seem to be more suspicious
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- Figure 24: Selected barriers to purchasing smart home devices, by household income, August 2018
Information Channels
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- Digital platforms are primary information channels
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- Figure 25: Channels from which consumers learn about smart home devices, August 2018
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- Figure 26: Channels from which consumers learn about smart home devices – repertoire analysis, August 2018
- Articles on me-media attract more males and consumers with middle household income level
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- Figure 27: Selected channels from which consumers learn about smart home devices, by gender, August 2018
- Figure 28: Selected channels from which consumers learn about smart home devices, by household income, August 2018
- Leverage mobile advertisement channels to attract 25-29-year-olds
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- Figure 29: Selected channels from which consumers learn about smart home devices, by age, August 2018
Meet the Mintropolitans
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- Mintropolitans tend to be early birds
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- Figure 30: Smart home appliance ownership, by consumer classification, August 2018
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- Figure 31: Functions of current home appliance, by city tier, August 2018
- Attract Mintropolitans via videos and well-designed ads
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- Figure 32: Channels from which consumers learn about smart home devices, by consumer classification, August 2018
- More Mintropolitans interested in smart home appliance for non-practical reasons
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- Figure 33: Reasons for being interested in smart home, by consumer classification, August 2018
Appendix – Methodology and Abbreviations
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- Methodology
- Abbreviations
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