Last week we held an event in Paris to present the results of our latest survey on the Smart Home. Journalists, key retailers and vendors were present to hear about the current outlook of the Smart Home market, which featured speakers such as Stéphane Bohbot, President of Innov8 and founder of Lick stores, Benoît Van Den Bulcke, Administrator of the Fédération Française de Domotique – the French Smart Home association, Vincent Gufflet, Director of Services at Darty and Adam Simon, Global Managing Director of Retail Development at CONTEXT. Each shared their vision of the market and key concerns the industry should be addressing to ensure the market takes off.
According to our latest survey, 11% of respondents expressed their intention to buy smart home. When trying to assess what the main barriers to the development of the Smart Home market in France were, “a lack of understanding” by consumers (50%) was highlighted as a key factor.
There seemed to be a clear message from consumers to retailers to improve their approach to this product segment and focus on educating, explaining and demonstrating the use of Smart Home products to help the public feel comfortable with this concept in order to increase adoption.
In addition to the ‘’evangelisation’’ of the public, the way products were currently being displayed in stores should be re-addressed, according to Stephane Bohbot, and this is something Lick stores had decided to do this year by paying special attention to active demonstration and presentation of the products.
The Smart Home Survey clearly showed that a number of products in this category met key requirements by consumers. Amongst these was ‘security while away from home’ (80%) and ‘security whilst at home’ (39%).
This is where retailers have a central role to play in educating consumers about the benefits of smart home product purchases.
It is important to remember that smart home product purchases are not necessarily one-off purchases, but consumers have the potential of becoming ongoing subscribers, with opportunities such as SHaaS – SmartHome as a Service. The Smart Home category is beyond product selling and an open door to selling services. 74% of French respondents already stated that they would be ready to pay 15 euros per month for specific subscriptions.
However, in order reap the potential of this market, there is still some way to go. As Yehia Oweiss, VP Sales & Marketing at Hauppauge Digital, said: American retailers have succeeded in making this market take off, there is no reason why Europe cannot do the same too. Retailers need to invest and trust in this market and consumers will follow – just as they did on the other side of the Atlantic.