What is the smart home in your eyes, "expensive", "complex" and "not practical"? It is undeniable that these are the crux of the smart home industry that has yet to be resolved. In particular, the cost of purchasing, installing, and using scares many intention consumers.
Let's calculate a set of accounts, a complete set of smart home systems, including regular lighting remote control, electrical remote control, electric curtain remote control, multi-room home background music and video sharing, security alarm and network video surveillance, purchase Domestic brands need at least 20,000 to 30,000 yuan, while international brands range from 50,000 to 100,000 yuan. In other words, if you put on a complete smart home system, you have to spend at least one extra house renovation.
In fact, the problem of high cost is not only the consumer's encounter, but also the "Sword of Damocles" on the head of the smart home business. Looking at the performance report of listed companies in the smart home sector, as early as the beginning of 2017, many companies have affected their performance due to rising costs.
Recently, in the “2017 Annual Results Forecast†of Anjubao, it was also revealed that due to the increase in corporate costs, the net profit in 2017 decreased by approximately 43.18%-71.59%. As one of the most competitive security brands in China, Anjubao has won the first place in “China's Top Ten Smart Home Brandsâ€. Its core competitiveness is strong, but it is inevitable that profits will be greatly reduced due to high costs. It is speculated that it is imperative to solve the problem of high cost of smart home enterprises.
Where is the cost of a smart home business?
1. Research and development costs. A complete set of smart home systems, including dozens of advanced technologies, such as Internet of Things, communication protocols, data storage and transportation, big data, artificial intelligence, biometrics, and more. These technologies have different degrees of development. To be perfectly embedded in traditional home products, they must undergo complex R&D tests. Therefore, high-tech research and development costs are the largest part of the operating costs of smart home businesses.
2. Production costs. Since the current consumer market is still not fully opened, smart home products are small-scale production, which cannot achieve breakthroughs in quantity, and production costs are generally high. Let us give you an example. The earliest fixed telephones and broadband are very expensive, and there is an additional charge when installing. When the information age is fully spread, the fixed telephones are now free. The broadband is also the network charging fee, that is, the installation, and the gateway. Send a set-top box to further stimulate consumption. The same is true for smart homes. Only when the “quantity†goes up, the cost will come down.
3. Labor costs. Even if the smart home is covered with a gorgeous coat, it is still a traditional manufacturing industry. The rising labor cost is the number one challenge faced by most manufacturers. The rising cost of raw materials and the shrinking demand for products have also squeezed their profit margins and brought some survival pressure. .
4. Financing costs. Despite the fact that today's smart home industry has the same word and standard, the investment market has become popular all the time. The capital market is a double-edged sword, which can help companies attract investment attention, but on the other hand, it also urges enterprises to generate benefits. As for the current situation in the domestic market, the production cost of the enterprise is high, and the marketing effect is not obvious. It is temporarily unable to meet the expectations of the investment market.
However, smart home enterprises that want to continue to finance products can not break the capital chain. They have to discuss their own pockets to promote and sizzle the market, forcibly turn their money to themselves and enter the infinite loop of capital financing.
Dongguan Yijia Optoelectronics Co., Ltd. , https://www.everbestlcdlcm.com