Smart Home Market Research - U.S. and South Korea
Differentiation speaks to making a product or service stand out by equipping it with a set of unique values. The offering stands out from the pack and enjoys competitive advantage. Smart home industry leaders such as LG, Samsung, Amazon, Google, Apple and others have made strategic differentiation decisions in the South Korean and United States markets. These decisions are in the areas of voice controlled systems, home security, home management and delivery systems. We found several examples of such differentiation.
Please find below a dive into these strategies and how these corporations have leveraged their data sets and played into different ecosystems.
Taking advantage of the fastest internet download speeds in the world, South Korean industries are not only moving into the smart home sector but are adding that extra to make their products beat the competition.
1. LG is the industry leader with 800,000 subscribers to their product LG UPlus. Their strategy for this market includes creating an affordable pricing system, and partnering with builders and manufacturers. In all, they have 36 devices. Partnering with other companies, including their rivals Samsung, this source says that LG has created smart thermostats, security cameras, plugs and light switches and more.
2. Samsung and KT Corp have also come up with product differentiation strategies. Samsung owns Bixby and Samsung connect which are home appliance control devices. KT Corp, South Korea's number one internet service provider created GiGA Genie, an advanced butler service that answers to voice prompts. KT Corp’s biggest competition SK Telecom run a similar service called NUGU.
3. Another group that stands out is Hyundai. According to this report, they have provided a tool for modern apartments to control light, temperature, locks, cameras, calendar, TV & radio, gas line, energy reporting, elevator requests.
In the United States, similar trends can be found.
1. Despite Amazon's entering the speaker market two years ago, Google has relatively bigger share in the market. Their product Google Home uses Google Assistant and voice-controlled systems. Since Google has large data sets, they are able to provide more personalized solutions to their customers’ search queries.
2. In partnership with Nest, Google Home performs multi functions like performing tasks and controlling devices in the home. The Pass Code, ‘Okay Google’ triggers a system that can do anything including playing music and changing room temperature using the Nest Learning Thermostat.
3. Nest also partners with other parties including insurance companies like Liberty Mutual who offer Nest Protect Smoke Detector. Google has also worked with LG to develop, in its different appliances, technology which will adapt to users’ needs and help them perform tasks around the home.
4. Amazon offers Amazon Echo. Like Google Home, it streams music and voice to handle a number of programmed tasks. This report shows it can also look up answers to questions using Wikipedia.
5. Other companies in the insurance industry are also exploring ways to use AI to improve service delivery and bring about greater customer satisfaction. For example, State Farm has a Canary home security monitor.
6. Not to be left out are Walmart and Amazon who put themselves heads and shoulders above the competition when they announced their in-home delivery service. Customers can take delivery of their orders even when they are not at home. Using smart locks and security cameras, they can let delivery persons into their homes while they monitor remotely.
Industry leaders in the smart home business in both the US and South Korea have developed products and services that put them far ahead of the competition. Sometimes, they have had to work with rivals in order to create solutions that will increase their market share. They have created solutions in the areas of voice activated systems, home security, management and delivery systems.