Switch on to the connected home
The Deloitte Consumer Review
Are consumers engaging with the Internet of Things (IoT)? Do they fully understand the benefits or are there barriers putting them off buying? And when will be the right time for businesses to invest?
Consumers are aware of the benefits of IoT
More than 2,000 UK consumers were surveyed about their relationship with IoT devices and we found that two thirds agree that connected devices have the potential to make their day-to-day lives easier. Our report focuses on the emerging prospect of the connected home and consumers' interaction with the Internet of Things. Read on to find out more.
There are still some barriers putting them off buying
Ownership of connected devices is still low. Whilst more than half of consumers currently own some form of connected device, the research found that two-thirds (70%) do not intend to buy one in the next 12 months, highlighting a challenge to brands and retailers.
Replacement cycles of household products will play a significant role in IoT growth - most of the demand for connected devices will be released slowly as consumers replace old and worn out appliances. Price and misperceptions regarding how advanced the technology is are also key areas retailers and brands could take steps to correct to encourage consumers to buy.
Interest in the connected home is growing
The living room was the first part of the home to become connected, and sales of smart TVs and wireless speakers continue to increase. The next stage of growth is likely to be in the area of home monitoring and security, while a connected kitchen will come further down the line. Businesses may need to provide consumers with the push they need to convert their interest in connected devices into actual purchases.
What should consumer businesses developing their IoT strategy be thinking about now?
- Brands hoping to gain a share of the consumer IoT market should watch its development as major technology companies manoeuvre themselves into place.
- Invest in some early marketing around the IoT – lay the groundwork now and reinforce a brand’s name in consumers’ minds for when demand starts to increase.
- Product brands and technology manufacturers need to think beyond product specifications, to how a consumer’s day-to-day life can be improved.
- The lack of universal standards for the manufacture of IoT devices is an important hurdle to clear but if brands were to work with technology firms, the pace of development could speed up.
- Privacy and security of consumer data need to be addressed. Manufacturers and software companies need to ensure app updates and operating system updates are secure.
- Communication needs to improve - businesses need to ensure consumers understand the full benefits and detail of connected devices.
Consumer data under attack: The growing threat of cyber crime - November 2015
Made-to-order: The rise of mass personalisation - July 2015
Africa: A 21st century view - November 2014
The growing power of consumers - July 2014
Reinventing the role of the high street - November 2013