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How Should Smart Lock SMEs Develop In 2020?

Jan 14, 2020

During the rapid development of the smart lock industry, people are constantly dreaming about the imagination space of the future market. But some people question whether the smart lock market in the future will really reach 100 million? There is no denying that the market is indeed huge. But not now, it may not necessarily reach 100 million in the next five years. Even so, more and more companies are coming in. Therefore, I cannot help asking: Do you guys who make smart locks make money now?

 

In addition, I have to ask: Some companies say that their annual sales have exceeded 300,000 units, 500,000 units, and some even claim to have exceeded 1 million units. In the face of such impressive figures, do you really believe it? Are these numbers moisture-free? The answer is yes, even if there is a lot of moisture. Of course it is undeniable that several companies can indeed do more than 500,000 sets or even more than 1 million sets. But few companies have such strength.

X1 SMART LOCK

Industry status of smart door locks

 

1.First, the development of small businesses and brands is really difficult. According to data from the National Lock Information Center, the annual production and sales in the first half of 2019 will be about 7.5 million sets, but the TOP20 production and sales account for about 60% of the entire industry. Therefore, the share of small brands and small businesses is very small. Therefore, small businesses and small brands have difficulty operating. They may be eliminated before the market output value reaches 100 million.

 

2. Big brands and cross-border brands have given little room for small brands and small businesses to survive. From the perspective of Amazon, Alibaba and other e-commerce platforms, the top sales are nothing more than Mijia, August Lock, Samsung, VOLIBEL and other well-known brands in the industry.

 

Of course, these companies sell well for a reason. First of all, the product is the first element, even if there are some similarities in function, at least there is a certain difference in appearance; secondly, it is willing to invest a lot of money for promotion. It is reported that the higher the ranking of e-commerce platforms, the more expensive the advertising fee. In addition, the cost of TV, Internet, new media and other channels is also a significant expense. Therefore, large enterprises and brands continue to innovate in product research and development, and invest heavily in promotion. Without this strength, small companies will lose market share.

volibel A1 smart lock

Will the adjustment of the industry come in advance? How does the smart lock industry go in 2020?

 

First, how is the product line of the company laid out? Some companies can compete with one or two products. Lenovo, 360 smart door lock ORVIBO, etc. only have one or two products, but sales are good. They rely on brand awareness accumulated in 3C, Internet and other industries. However, some companies must rely on a rich product line to win the world. For example, VOLIBEL XA is a product with different routes, X1 is a popular model, X3 is a customized model, A1, etc. are cost-effective models, and X5, X8, X9, and A3 are body types. Small style.

 

Some differentiate consumers from brands. August locks are mainly for mid-to-high-end users, and the price is relatively high; VOLIBEL is a brand for young users. The price is between 60-150.

 

From the current point of view, there are not many companies that take advantage of high-quality products and rely on only one or two products, and they are not feasible, but the entire system coverage is too costly for the enterprise.

smart door lock app

Second, how to price the product. Cost-effective is definitely a killer to grab users. But high sexual value does not mean cheap. From the current point of view, 60-150 smart locks are the most popular. Nowadays, users are becoming more and more rational, and too cheap products are afraid to buy. Therefore, how to set prices is also very important, as users must be able to afford them, and they must not fall into the vortex of "price war". In fact, at present it seems that the companies that sell a smart lock for $ 40 are deceiving people. These companies are just to make quick money.


Third, how to differentiate development. The differentiation here refers more to the differentiation on the product. For users, those products that use the public version of the public model, as well as those products that are imitated, have long been aesthetically fatigued. The functions are the same, the appearance of hitting the face, there is no choice for the user. Of course, product differentiation requires companies to invest a lot of manpower, material resources and financial resources to do structural innovation, functional innovation, and innovation in appearance design. It's not enough to do these things. The most important thing is whether you can make your own products. Take it as a very advanced and cool concept. The product looks similar to the user. But the concept is ahead of time and it sells better. That is, how you tell a good story to your product is also important.

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In addition, the largest shipment of smart locks is still in the B-end market. With the advent of the era of fine decoration, smart locks are an important part of smart homes. It has gradually become one of the selling points of major real estate developers to enhance the added value of real estate. For this reason, the initial installation volume of smart locks has continued to increase in recent years. Even many users came into contact with smart locks through locks initially installed by developers. But real estate developers have very high requirements. First of all, prices must have advantages. Secondly, the quality must not be too bad, and the installation and after-sales must be done well. Therefore, many smart lock companies are unwilling to accept engineering projects. But large quantities are the biggest temptation. How should companies balance retail and engineering projects? This requires the enterprise to consider from the actual starting point.

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