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How much is the distance between Korean enterprises and Chinese home appliances?
For over a decade, the concept of smart home networks and communications has been proposed, yet achieving true interoperability between appliances from different major brands remains a significant challenge. Even within the Chinese market, where several leading brands dominate, the likelihood of seamless interoperability appears slim. Recently, however, both Samsung Electronics and LG announced their membership in the open IoT standard organization, OCF. This move suggests that their upcoming smart home appliances may soon be interconnected, allowing consumers to control one product through another from either brand. Despite these announcements, current products in circulation remain unconnected.
Industry experts are cautiously optimistic about this development. A representative from Midea Group’s Smart Home division noted that if Samsung and LG succeed in interconnecting their smart appliances, it would mark a positive step for the global appliance industry.
Looking back at the progress of smart homes in China, brands like Haier, Midea, Xiaomi, Changhong, TCL, and Konka have made significant strides. Each has developed its own smart home ecosystems, often focusing on integrating products within their own brands. While smart appliances from the same brand can communicate, cross-brand interoperability remains limited.
At this stage, most smart home appliances rely on Wi-Fi modules for networked control, requiring separate apps for different brands, which complicates user experience. A truly smart home should anticipate and adjust to users' habits autonomously, necessitating a unified platform and standardized protocols. However, current wireless standards are inconsistent, and many brands are hesitant to share their data and resources.
According to Ao Wei Yun, vice president of Dong Ming Network, the fragmented nature of smart home systems has hindered progress. Manufacturers prefer to focus on their product lines, creating closed systems that prevent seamless interoperability. This reluctance to collaborate undermines the potential for comprehensive smart home solutions.
The difficulty in achieving cross-brand interoperability stems largely from competitive dynamics. Even Samsung and LG's efforts through OCF face skepticism. As Yang Fan, a senior analyst at Analysys International, explained, the relationship between competitors like Samsung and LG is fragile, limiting the effectiveness of their interconnection initiative. Similarly, Chinese brands face similar challenges due to their competitive nature.
Despite these obstacles, the industry acknowledges the technical feasibility of standardizing smart home connections. Companies have joined international standards organizations, but sharing core data remains contentious. Instead, brands continue to invest in proprietary smart home platforms, leveraging networked products to gather user insights and foster secondary sales opportunities.
While Samsung and LG's model may not offer a perfect solution, Yang Fan suggests that Chinese companies need not emulate it entirely. Domestic brands could benefit from focusing on their unique strengths rather than trying to unite under a single platform.
Meanwhile, e-commerce giants like JD.com and Alibaba are emerging as key players in the smart home space. Three years ago, JD.com partnered with Midea to launch a smart refrigerator, marking a pivotal moment in smart home innovation. More recently, Alibaba collaborated with Haier on smart TVs and worked with Midea to develop "OS Zhizhi" smart refrigerators.
These collaborations reflect a strategic shift towards content-driven appliances. For instance, smart TVs leverage digital entertainment content to boost sales of related products, while smart refrigerators aim to integrate fresh produce purchasing into users' routines. E-commerce platforms view smart home systems as tools to sell complementary goods like fresh foods and entertainment products.
Wang Hongji, a research manager at China's Yikang White Power Division, highlighted that channel providers have strong incentives to push smart home platforms. By collecting real-time consumer data, e-commerce companies can create detailed user profiles, enhancing their market strategies. Additionally, selling associated products through smart home devices offers a lucrative business model.
Although some doubt e-commerce's ability to serve as a smart home platform, Wang Hongji argues that their involvement has driven innovation. Third-party entities like e-commerce platforms may compel manufacturers to open their closed systems. Given their expertise in household appliances, e-commerce firms are uniquely positioned to facilitate cross-brand interoperability.
As the industry evolves, the role of e-commerce in shaping smart home ecosystems will undoubtedly grow. While the path forward remains uncertain, the convergence of technology and commerce suggests a promising future for smart homes.