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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 has been proposed, yet true interoperability between appliances from different major brands remains largely unachieved. In China's local market, even among some of the leading brands, achieving such interoperability seems quite challenging. Recently, Samsung Electronics and LG Electronics from South Korea announced their joining of the open IoT standard organization, OCF. This move indicates that their upcoming smart home appliances will be capable of seamless interconnection, allowing consumers to control one device via another. Despite this announcement, the current market offerings from these two brands are still not interconnected.
Industry insiders remain cautiously optimistic about this development. A representative from Midea Group’s smart home division noted that if Samsung and LG successfully implement their stated plans for interconnecting their smart home appliances, it would indeed be a significant advancement for the global home appliance sector.
Reflecting on the progress of smart homes in China, brands like Haier, Midea, Xiaomi, Changhong, TCL, and Konka have made notable strides in both product development and market strategies. Haier has built a comprehensive smart home system integrating washing machines, air conditioners, and other appliances under the U.S.-open M-Smart platform. Xiaomi has also introduced its own smart home concept, while companies such as Changhong, TCL, and Skyworth focus on smart TVs as central hubs, linking them with air conditioners, refrigerators, and air purifiers.
Despite these efforts, most smart home appliances today rely heavily on WiFi modules for networked control, requiring separate apps for each device. Managing a dozen appliances often necessitates downloading multiple apps, leading to a poor user experience. True smart homes should adapt automatically based on user habits, necessitating a standardized platform that consolidates all information.
The challenge lies in the fragmented nature of wireless connectivity standards and the reluctance of brands to share data and platforms. Ao Wei Yun, the vice president of Dong Min Network, emphasized that the lack of interoperability between brands limits the growth of the smart home ecosystem, hindering the development of a cohesive solution.
While the technical barriers to interconnection can be overcome, the competitive dynamics among manufacturers pose a significant obstacle. Analyst Yang Fan from Analysys International pointed out that alliances like those formed by Samsung and LG through OCF might not yield substantial benefits due to inherent competition. Similarly, Chinese manufacturers are unlikely to collaborate due to proprietary data concerns and the relatively minor role that interoperability plays in consumer purchasing decisions.
Despite these hurdles, major manufacturers continue to invest in their own smart home ecosystems. Wang Hongji, a research manager at China Yikang White Power Division, explained that e-commerce platforms like JD.com and Alibaba are playing pivotal roles in advancing smart home adoption. Their initiatives include collaborations with brands to create integrated smart appliances, leveraging IoT platforms to gather consumer data and offer additional product recommendations.
JD.com’s recent launch of a smart refrigerator in partnership with Midea exemplifies this strategy. By embedding features that encourage purchases of fresh produce and other goods, e-commerce platforms aim to monetize beyond just the sale of smart appliances. Wang Hongji noted that while early attempts at universal smart home solutions faced tepid consumer response, focusing on specific appliances with clear use cases offers a more viable path forward.
In conclusion, while complete interoperability across brands remains elusive, third-party entities such as e-commerce platforms are increasingly influencing the smart home landscape. Their involvement could pressure manufacturers to adopt more open standards, potentially accelerating innovation and user adoption.