Smart speakers in the Chinese market are growing rapidly, but they are not sticky enough to make profits

A few days ago, it was revealed that Google has prepared a smart speaker with a screen, which will be shipped during the holiday sales season in Europe and the United States at the end of this year. The news even revealed that the first wholesale volume of Google’s smart speaker product is expected to be 3 million units. . With Amazon Echo Show first, Google, which came from behind in the field of smart speakers, is reasonable to launch this product. A development trend of smart speakers has prompted it to appear-more and more closely integrated with smart homes, and even smart speaker hardware itself is combined with other home appliances, "hybridizing" some new product forms. This trend has also appeared in China. For example, in mid-August, TCL launched a product that combines a smart TV with a smart speaker. TCL denied that it was a TV and called it a "new species."

Smart speakers in the Chinese market are growing rapidly, but they are not sticky enough to make profits

Smart speakers in the Chinese market are growing rapidly and will surpass the U.S. in the short term

The development of smart speakers in 2018 can be described as "high-flying", whether in the world or in China. According to the statistics of market research agency Canalys, global smart speaker shipments reached 16.8 million units in the second quarter of 2018, a market growth of 187%, of which Google and Amazon ranked among the top two global shipments due to their sales in the US market. Shipments were 5.4 million units and 4.1 million units. But the Canalys report also pointed out that although the US market has made significant progress, the engine that promotes the growth of smart speakers in the second quarter is China. China contributed 52% to global shipment growth, while the United States contributed 16%. Alibaba and Xiaomi ranked third and fourth in the world, respectively, with shipments of 3 million and 2 million smart speakers.

Canalys Shanghai research analyst He Tianhua told reporters that in the second quarter of 2018, the overall shipment of smart speakers in China was about 5.8 million units, compared with 6.3 million units in the United States, with a gap of 500,000 units; and in the first quarter of 2018, China The gap between the shipment of smart speakers in the United States and the United States is still as high as 2.4 million units. The gap between the two quickly narrowed in the second quarter, showing the market potential of China. "The increase mainly comes from Tmall, Xiaomi, and Dingdong smart speakers. Alibaba and Xiaomi have used substantial subsidies to create demand. The two companies have sufficient funds for marketing and hardware support to quickly establish their User base. Although the actual level of demand for smart speaker products has not yet been confirmed, China is expected to surpass the United States in the short term.” She said.

Insufficient stickiness, difficult to profit, value lies in "education of users"

Due to the intervention of large-scale Internet companies with deep pockets and successive product price reductions, the sales of smart speakers in China have increased with the increase in consumer awareness and desire to buy, but compared with the penetration rate of nearly 30% in American households, the popularity of smart speakers in China The rate is still very low.

A survey conducted by AVC has shown that 57% of consumers in China have heard of smart speakers, and 23% of consumers have a certain understanding of smart speakers. "However, consumers are still trying to buy smart speakers, and the frequency and duration of use after purchase are not ideal. Therefore, increasing user stickiness should become a problem for companies to think about." Ovi Cloud concluded the survey. . He Tianhua also said: "How to increase user stickiness and profit from the growing number of smart speakers is a problem facing Chinese manufacturers."

Smart home is one of the most important application scenarios of artificial intelligence technology, with huge market potential. China's smart home market is currently in a state of decentralization and independence, requiring access to a unified portal and platform to manage smart home products, and the choice of portal and platform will also determine the user's choice of other smart hardware. From routers in 2014, to smart home appliances afterwards, to smart speakers that emerged in 2017, the battle for the entry of smart homes has never stopped. Smart speakers have become a strong competitor for smart home entrances by virtue of their advantages of voice interaction, small size, low cost, convenient movement, and low power consumption.

However, as a carrier of sound entertainment, smart speakers have thin functions after all, which also determines that they can be quickly distributed and popularized (there are factors such as concept, small size, low cost, etc.), but they cannot really make users sticky. , Not necessarily a competent "artificial intelligence messenger".

"Smart speakers at this stage are more responsible for the use of voice interaction experience polishing and market education carrier. The main purpose behind the creation of smart speakers is to activate more users of voice interaction platforms, so as to polish and improve this part. User experience is widely used in more intelligent hardware." IDC China Research Manager Pan Xuefei told reporters.

Smart speakers may be just a "transition product" AI has unlimited vitality

If the giants spend more money on smart speakers for "training", then smart speakers as an experimental product, the durability of its product form is questionable. In fact, manufacturers are actively exploring the functions of smart speakers and new product forms.

Canalys Senior Analyst Liu Jiansen said: “Korean network operators have integrated smart speakers into set-top boxes and successfully added new life and entertainment services to IPTV through voice and video support. In addition, with the rapid development of the global smart speaker market, The use cases of smart speakers are radiating beyond smart homes. Many companies, including Amazon, are integrating smart speakers into vertical markets, such as hotels, retail stores, hospitals and other commercial venues."

"It is possible for smart speakers to be integrated with other products in form in the long run, which can give the product itself a more specific practical value on top of voice interaction." Pan Xuefei said, "The combination of smart speakers and screens, to a certain extent The above makes up for the current situation of unsatisfactory voice interaction experience at this stage, and the integration of screen interaction and voice interaction will also be one of the future directions."

"I think AI will have a wider range of usage scenarios in the future, and AI as a whole is also penetrating into various vertical fields, such as color TVs, home security, refrigerators, etc. We see that Amazon has also launched investments like Alexa Fund to explore The possibility of AI will help small and medium-sized enterprises to incubate at the same time. Providing integrated services, integrated smart home or commercial experience will be a challenge for manufacturers." He Tianhua told reporters.

"The future market will focus on discovering the full potential of intelligent voice assistants. This is the direction set by Amazon and Google, and has also been responded to by many local market leaders. We will soon enter a new era in which intelligent voice assistants will need a A new type of hardware medium that is more effective than speakers to promote further development." Liu Jiansen said.

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