Household appliance giants foray into smart homes

By Cui Guoqiang

In December 2014, Midea and Xiaomi Technology joined force to enter the smart home market. In the following month, a number of conventional household electrical appliance manufacturers have also revealed their intention to enter the market: Haier Group signed strategic cooperation agreement with Evergrande, Midea offered an olive branch to JD, Skyworth allied with Alibaba and Youku, and Hisense partnered with 11 online companies to enter the field...

Wang Jinliang, director of Midea Group's domestic market division, said that Midea has always focused on white electrical appliances, kitchen appliances, and small appliances, and is a traditional machinery manufacturer. "We need the help of professional internet software companies if we are to make breakthroughs in fields that we are not good at, such as the internet, cloud computing, and cloud services. The partnership with Xiaomi is an important measure for Midea's business expansion and strategic arrangement in the mobile internet era".

Changhong Group has also been introducing smart products. After the introduction of the CHiQ TV, the first smart TV that integrates the three networks in China, Meiling launched the CHiQ refrigerator that sports cloud image recognition technology, and a CHiQ air-conditioner that is equipped with human body condition sensing technology was also introduced later. Liu Tibin, general manager of Changhong Group, said that the "intelligence era" of white appliance will bring an end to the "functionality era"; Changhong will achieve full transformation ranging from product design to manufacturing, from marketing approaches to brand rebuilding, and from organization structure adjustment to information platform establishment.

"Changhong's TV would try to remember a user's preference, sense the user's emotion, and enable the user to choose programs to their likings; it can move a TV program from the large screen onto a small green within only click, making it possible to "watch video at any time and different places, of different types, and on multiple screens". Changhong's air-conditioner initiated customization, capable of meeting users' needs by means of various application scenarios rather than pure functions", said Liu Tibin.

After establishing partnership with Vanda Li Dongsheng, chairman of the board of TCL, said that: "TCL is now pushing ahead the "Double +" strategic transformation which features multimedia and telecommunication. The company has constructed an ecosystem of "components + terminals + content application + platform", stepping up efforts to enhance businesses like terminal content, application, platform, smart home, and cloud services. The strategic partnership would help the company to develop the capability to offer smart products and internet operation services from cloud to terminals".

In fact, Chinese companies are not the only ones that are rushing into the smart home furnishing field. Many foreign companies are also transitioning rapidly across the globe. In 2014, Google bought home automation company Nest Labs for US$ 3.2 billion; LG exhibited its smart home management system HomeChat; and Samsung launched the intelligent home platform SmartHome

Bai Siwei, vice president and secretary general of China Internet of Things Industry Association, believes that the current smart furnishing fad is a "chain effect" brought by mobile internet. In the past, consumption of smart home products remained in upscale villa areas, sold as part of decoration projects and smart home furnishing projects. Now, the consumer groups are apparently extending to ordinary consumers. With the rapid development of mobile internet and the appearance of new wireless technology, the smart home furnishing industry will see a period of opportunities for its development. Compared to conventional way, modern smart home furnishing incorporates many wireless transmission control technology, and as mobile internet and terminals become more popular, the modern way will largely replace conventional home furnishing that uses wiring extensively, making it more energy-saving, environment-friendly, and low-carbon, bringing outstanding user experience to users. In particular, with the promulgations of policies like the Development Plan of the Internet of Things during the Twelfth Five-year Plan, smart industries are explicitly named as the key areas of development in the future. The support and guidance of policies give companies great confidence, and many conventional home appliance companies are getting involved in this field.

"The advantage of home appliance companies lies in the intelligentialization of information household electrical appliances, and that of internet companies in platform-based operation and services; they are mutually complementary, and together can achieve the scale application, standardization, platform application, and connectivity of light and smart home furnishing", said Bai Siwei.

Bai Siwei believes that there are five major trends for the development of smart home furnishing in the future. Firstly, touch control will be a common control method for smart home, with an intelligent touch screen capable of controlling lighting, electrical appliances, curtains, security, monitor, and access at home. Secondly, mobile phone will be the most important mobile smart control terminal for smart home furnishing in the future. Via smart home apps or web approaches, a mobile phone will be able to monitor and control the interior of the house remotely, capable of opening door remotely, visitor image confirmation, and starting air-conditioner and warming equipments from afar. Thirdly, wireless control system and wire control system will integrate seamlessly; main line area will use wiring control system, and small areas will use wireless control system. Fourthly, a smart home will be a small version of the internet of things, with all objects in the house interconnected with one another. Fifthly, smart home system will connect to smart city system, smart building system, and smart community system seamlessly, and all smart home systems will certainly be compatible with the seamless control linkage of the bigger systems.

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Household appliance giants foray into smart homes