Opportunities and challenges for brands selling IoT products for the home
Although some connected products for the home such as home security systems have been around for years, the market for smart home IoT products is early. In Part I of our report on the Internet of Things (IoT) for the home, we explored who is buying these products now and who will constitute the next wave of adoption. Understanding the priorities and perceived barriers of consumers is vital for brands to succeed—but so is understanding the internal struggles they face when entering this new market.
For brands who manufacture traditional products for the home, breaking into the consumer electronics space—one alien to them—can be a daunting task. The shift from creating disconnected products to smart, connected devices requires a significant internal transformation including building new technological acumen and new business models, reconsidering product development approaches, creating more sales channels, and servicing more complex products. While this transformation can translate into new opportunities to grow, it’s not without weighty challenges.