Development Trend of Smart Home Industry A case study of Haier Smart Home

Abstract

In recent years Smart Home appliance is a research hotspot in the home appliance industry. It is the product of a series of high-end technologies such as the Internet of Things, 5G, and AI, and is in the growth stage of the product life cycle. In this paper, the PESTAL analysis method and Porter's Five Forces model are used to analyze the environment and competition in the Chinese smart home industry. It is found that the generation of Smart Home conforms to the upgrading of social demand and economic development, so it is supported by the government. However the industry now lacks a unified technology connector, resulting in the fragmentation and isolation of current products from different producers. This paper also takes Haier Smart Home as an example, focusing on its analysis of product logic chain and of financial status. Through the establishment of seven brands, Haier Smart Home has created a perfect product system, which can meet the multi-level demand of middle and high-end, and ranks high in sales. Contrast to its competitors, Haier Smart Home's complex ownership structure and overlapping sales channels do harm to the efficiency of its operation, which eventually result in a low-profit margin, but its sales are high, and asset turnover also maintains at a good level, so the company overall operation is in good condition, and its future growth space is large.