In January 2023, "Forbes" AI columnist Rob Toews released the annual AI development forecast, pointing out that the development of artificial intelligence will bring far-reaching impacts involving various industries and interdisciplinary fields. Changes are coming, and the world has set off a wave of generative AI. Artificial intelligence technology represented by natural language processing is evolving rapidly, and actively embracing the arrival of a new wave of intelligence.
The smart home industry took this opportunity to achieve a major breakthrough. Under the unremitting exploration of leading companies, smart home solutions based on multi-modal perception capabilities, natural communication capabilities, and dynamic learning capabilities have ushered in a comprehensive upgrade, and user experience will be significantly improved in terms of perception and interaction. This also means that a new round of competition in smart homes has kicked off, and the "one-stop customized" whole-house smart solutions that actively sense and serve users have become recognized as the "second half of the industry".
The new trend of smart home: from single product intelligence to whole house intelligence
Smart home is an important application of Internet of Things, artificial intelligence and other technologies in the field of smart life. Its development is conducive to improving the convenience, comfort and safety of people's lives. In order to meet consumers' upgrading needs for green, healthy, smart, and fashionable home appliances, and accelerate the creation of a new digital life of sharing wisdom, the State Council, the Ministry of Industry and Information Technology, and the Ministry of Commerce have successively issued a series of policies to support the development of the smart home industry. Policies are blowing frequently, and smart homes are accelerating towards high-quality development such as greening, aging, and interconnection of the whole house.
Table 1.1 Overview of Key Policies for China’s Smart Home Industry Source: 36Kr Research Institute based on public information
At the same time, in the era of the digital economy, technologies such as the Internet of Things, cloud computing, big data, and artificial intelligence continue to advance, driving the innovation and upgrading of smart home product functions, which can provide interconnection, active perception, and intelligence based on a deeper analysis of user needs. Decision-making and other better services. In addition, in the context of consumption upgrades, consumers have put forward higher requirements for product intelligence, interactive experience quality, personalized design, and green home appliances. , integration and other directions of development. According to the research data of 36 Krypton Research Institute, 59.8% of users require smart products to efficiently solve trivial matters, so as to help them enjoy life easily; 54.3% of users hope to have personalized and customized smart home scenes; 50.9% of users are interested in the environment and Air health and safety put forward higher requirements.
In summary, under the joint action of policy, technology and market demand, it has become an inevitable trend for whole house intelligence to enter thousands of households. From the 1.0 stage of smart single product control, to the scene-centered basic interconnection 2.0 stage, and then to the user-centered whole-house intelligence 3.0 stage, the intelligence of smart home products has been significantly improved, and the application scenarios have been continuously expanded. "Passive control" Begin to shift to "active perception".
Figure 1.1 China’s Smart Home Development Stages Source: 36Kr Research Institute’s compilation based on expert interviews and public market data
A new round of rapid development cycle of the smart home industry has come, and the whole house intelligence will become a new driving force for the overall growth of the smart home industry. According to iFinD data, China's smart home market will reach 217.5 billion yuan in 2022, a year-on-year increase of 13.1%, and the compound annual growth rate (CAGR) from 2014 to 2022 will be 27.9%. Among them, the whole-house smart market will grow rapidly. According to IDC's calculations, the sales of China's whole-house smart market are expected to exceed 47 billion yuan in 2026, and the CAGR will reach 46.9% from 2022 to 2026.
Figure 1.2 China’s Smart Home and Whole House Smart Market Scale Source: iFinD, IDC, 36Kr Research Institute
The whole house smart market: the four core competitiveness become the key for smart home manufacturers to break through
In the intelligent era of the whole house, the upgrade of product functions, the expansion of scene system, the enhancement of interactive experience and the improvement of service capabilities will satisfy people's beautiful imagination of smart life to a greater extent. It is worth noting that the current whole-house smart market is still in the early stages of development, and is gradually shifting from networking and sceneization to perception and autonomy [1]. There are still some problems in technological breakthroughs, market awareness, and user needs crack.
Figure 2.1 China's whole house smart manufacturers are facing difficulties Source: 36 Krypton Research Institute compiled according to expert interviews and market public information
At the technical level, first, the localization of key basic hardware is low, and core components such as upstream chips and sensors are still dominated by foreign manufacturers, which hinders the deepening of perception and interaction capabilities to a certain extent; second, industry standards are not uniform The resulting product compatibility issues have affected the interconnection efficiency between devices and the smart penetration rate of the whole house. In terms of market awareness, it still takes time for domestic whole-house smart solutions to be popularized. Consumers have little understanding of related concepts, functions, and ecology, and the market penetration rate is still at a low level. At the level of user needs, insufficient intelligence, insufficient interaction capabilities, and complex operating procedures have become the main reasons why consumers do not accept the whole house intelligence.
Figure 2.2 Reasons why users believe that smart home products are not highly intelligent
As a result, manufacturers that deploy the whole house smart industry generally face difficulties such as limited key technologies, low market awareness, and insufficient user experience. So, in an increasingly competitive market, how can whole-house smart manufacturers accelerate their breakthrough and occupy a favorable position on the track? In this regard, combined with expert interviews and the strategic layout strategies of major smart home manufacturers, 36 Krypton Research Institute believes that technology, products, scenarios, services, Brand and other multi-dimensional advantages will become the key to breaking the situation.
Figure 2.3 Construction of Four Core Competitiveness of China's Whole-House Smart Manufacturers Source: 36Kr Research Institute compiled according to expert interviews and market public information
Scientific and technological strength is the key to the smart manufacturers of the whole house to occupy the competitive high ground. Technological innovations such as sensors, SoC chips, the Internet of Things, and artificial intelligence can be said to be the driving force for the in-depth development of the whole house smart industry, making the interconnection between application scenarios and the active perception and decision-making of smart products a reality. In this upgrading and development process, manufacturers with independent research and development capabilities for key technologies can focus on consumer needs and maintain iterative innovations in high-level products, scenarios, and services, thereby achieving leading development.
Scene power is the support for user experience upgrades. With the rise of the "Generation Z" consumer group, the demand for convenience, intelligence, high-end, and customization in the smart home field has increased significantly. In this regard, smart home manufacturers are committed to building single-scenario integration, multi-category, multi-scenario interconnection, and one-stop customized solutions to meet users' needs for a high-level life with high-quality supply capabilities.
Brand power is the guarantee for the whole house smart manufacturers to expand their influence. Smart home companies often rely on refined operations, omni-channel layout and other aspects to expand brand awareness and expand the consumer circle, while driving the overall awareness of the industry. For example, with user insights as the core, launch hierarchical and diversified products to meet the needs of consumers at different levels; implement an online and offline integrated development model, innovate the layout of offline experience stores, and enhance user awareness through high-quality interactive experience. At the same time, strengthen the expansion of online channels and use emerging social media to expand brand awareness.
Hard power determines the development speed and height of smart manufacturers in the whole house, and it tests the comprehensive capabilities and forward-looking vision of manufacturers' resources, strategic layout, etc. Resource capabilities are often backed by the strength of the group, which accumulates elements such as technology and ecology to promote innovation and upgrading of products, scenarios, and services. The strategic layout capability is based on in-depth insight into government policies and industry trends, etc., and timely adjusts business strategies with user needs as the core, and continues to create new profit growth points.
To sum up, in the user-centered era of Whole House Intelligence 3.0, whoever possesses technological strength, scene strength, brand strength and hard power can win the favor of consumers and lead the development of the industry. In this context, Haier Smart Home implements a full-category, multi-brand operation strategy, and at the same time leverages its advantages in original technology and digital operations, adheres to "people-centered", builds the industry's largest smart home scene ecology, and creates a new brand of global smart home leaders . image.
Experience full-scenario smart life at Haier Smart Home
In fact, Haier Zhijia released U-home as early as 2006 to start the initial exploration of smart home. In 2015, it officially launched the smart home strategy. In 2020, it established the scene brand Triwing Bird. Smart solutions, the 4.0 Smart Home Experience Center will be launched in 2023, and the series layout will be at the forefront of the industry.
It can be seen that the leading series layout of Haier Smart Home is actually a comprehensive effect of hard power, technological power, scene power, and brand power.
First of all, Haier Zhijia focuses on user needs and implements a three-level brand strategy of high-end brands, scene brands, and ecological brands, which better demonstrates that hard power is the key to building its own moat. In terms of high-end brands, Haier Zhijia has formed seven high-end brand clusters including Haier, Casarte, Leader, GE Appliances, Candy, Fisher & Paykel and AQUA, which can provide a full range of home appliances and adapt to users' high-end, healthy , fashion and other diverse consumer needs. It is worth mentioning that on April 25, Fisher & Paykel, a global top luxury home appliance brand under Haier Smart Home, will open its first store in Shanghai, which will fill the gap of high-end brands in China's top luxury market. In terms of scene branding, Haier Triwing has built a "1+3+5+N" whole-house smart full-scenario solution, which can better serve users' one-stop home improvement, home furnishing, home appliances, and home life solutions. In addition, Haier Smart Home also provides users with one-stop, one-stop full-process services through ecological brands such as the Internet of Clothing, the Internet of Food, and the Internet of Water.
Figure 3.1 Haier Smart Home "1+3+5+N" whole-house smart full-scenario solution Source: Haier Smart Home, 36Kr Research Institute
Secondly, behind the one-stop, customized whole-house smart and full-scenario service capability is the in-depth insight of users, and it is also the support of Haier Smart Home's original technology and smart technology. Focusing on user convenience, health and other living needs, Haier Smart Home has launched a series of explosive products such as flat-mounted refrigerators, twin-tower air conditioners, and essence washing machines equipped with original black technology. At the same time, it has industry-leading smart home technology. "Let the family know how to learn, think, and understand you better, and provide a smart experience with in-depth and proactive services. At present, Haier Smart Home has won 11 China Patent Gold Awards and 16 National Science and Technology Progress Awards, which are the most in the industry. It is also the only enterprise in the Chinese industry that leads and participates in the smart home standards of the five international organizations IEC, ISO, IEEE, OCF, and Matter. , and achieved 8 consecutive global titles of smart home invention patents. In January 2022, Haier National Engineering Research Center for Digital Home Network was selected into the list of new national engineering research centers announced by the National Development and Reform Commission . ].
Figure 3.2 Haier Smart Home's core competitiveness in building smart, all-scenario solutions for the whole house Source: Haier Smart Home, 36Kr Research Institute
At the same time, the layout of the smart home experience center will enhance the overall market awareness of the brand and even the whole house smart industry with immersive user experience. The brand power of the omni-channel layout is confirmed. In February 2023, store 001 of Haier Triwing Guangzhou Experience Center officially opened, creating a 4.0 smart home experience center with immersive smart scene experience and a full-process digital operation system. In 2023, Triwing will accumulatively deploy 3,300+ smart life experience halls, covering 304 core cities, and accelerate the entry of smart homes.
In addition, Haier Smart Home also actively responds to the call of national policies, complies with market development and changes, and actively deploys strategic directions such as digitalization, greenization, and aging, and strives to enhance the brand's social value.
In terms of digital transformation, Haier Zhijia focuses on the first efficiency. Through the four digital reconstructions of goals, organizations, mechanisms, and processes, all employees and processes focus on the transformation from "enterprise digitalization" to "digital enterprise". In November 2022, Haier Smart Home was selected as one of the first batch of "Digital Pilot" enterprises in the country, and topped the list, showing remarkable results in digital transformation.
In terms of green health, Haier Smart Home complies with the changes in China's population structure and energy structure, and has begun to make efforts in low-carbon, elderly-friendly and other aspects and strive to achieve breakthroughs, so that the future of smart, green and healthy life can be clearly seen. On the one hand, Haier Smart Home mainly promotes energy-saving complete sets of electrical appliances, and at the same time provides AI energy-saving solutions for the whole house. Through AI energy-saving algorithms and combined with user habits, it recommends suitable optimal energy consumption solutions. On the other hand, Haier Smart Home established an aging-friendly industry, participated in and led the formulation of national standards and industry standards for aging for many times, and innovated in the aspects of safety, health, humanization and personalization of the full-scenario home care solutions. Haier's AI voice smart fresh-keeping refrigerator, Casarte Galaxy air conditioner and other products were selected into the "2022 Catalog of Products for the Elderly" by the Ministry of Industry and Information Technology.
In the future, with the upgrading of hardware such as sensors and chips, and the accelerated evolution of artificial intelligence technology, ubiquitous perception, intelligent decision-making, and active service capabilities will be further enhanced, and the whole-house intelligent industry will usher in a period of development and prosperity. Haier Smart Home will also continue to implement national strategies such as "increasing the supply of healthy, intelligent and green products", give full play to the advantages of original technology, smart scenarios, and full-process digital operations, continue to promote the three-level brand strategy, upgrade the "Smart Home Brain", and lead the wisdom life future development.
For more about the future imagination of the smart home industry, please pay attention to the "Haier Smart Home 2023 AWE Smart Life Exhibition" which will be held from April 27, 2023 to April 29, 2023. At that time, Haier Smart Home will showcase black-tech explosive products, rich scene solutions and smart life experience. For more exciting things, go to Hall N5 of Shanghai New International Expo Center to find out.
(Article source / 36 krypton)