In the midst of the grand Double 11 carnival, the tech world is experiencing a mix of excitement and uncertainty. E-commerce platforms are thriving, with internet products unrelated to shopping struggling to find relevance during this time. Major sellers on Tmall are doing exceptionally well, while small and medium-sized sellers, lacking both funds and traffic, are finding it hard to secure orders. Smartphone manufacturers with big names are shining bright, but those in the long tail of the market are feeling lost. Similarly, e-commerce marketing teams are flourishing, while non-e-commerce marketers are just watching from the sidelines. So, is smart hardware a blessing or a slap in the face? It's a bittersweet situation.
First, there's good news: smart hardware has finally made its way into the mainstream consumer festival. Compared to last year, smart hardware found its place in 2014. Jingdong prominently featured "Smart Home" during the Double 11, showcasing a range of smart devices like smart cameras, home appliances, sockets, audio systems, kitchen gadgets, and even smart curtains. However, most of these were "pseudo-intelligent" products that few had heard of before.
Jingdong also launched the "JD+ IT Living Museum," featuring star products like the Maikai Smart Water Cup, Picooc Smart Scale, Lexin Smart Bracelet, and more. According to Ray Technology's data, three key products—Maikai Smart Water Cup, Picooc Smart Scale, and Lexin Smart Bracelet—were among the top sellers, along with smart bracelets, health monitors, smartwatches, and other smart devices.
Jingdong’s smart hardware section during Double 11 reflected a growing trend: smart homes were the biggest hit, followed by wearables and health products. Meanwhile, devices like OBDs and drones remained largely absent.
However, the bad news is that the participation of smart hardware in Double 11 holds more symbolic value than actual impact. Ray Technology’s spot check revealed that some products didn’t even reduce their prices, and others even increased them. For example, the Maikai Smart Water Cup was priced at 329 yuan instead of 399, but many other products remained unchanged or even rose in price.
Price may not be the main issue for smart hardware. The real challenge lies in educating consumers and identifying real needs. If someone wants a Maikai cup, they’ll buy it at either 399 or 329. But this doesn't mean smart hardware has no value in Double 11. At the very least, it raises awareness and helps educate the market.
Looking at the channel landscape, Jingdong is leading the charge, while Alibaba is catching up. Jingdong, with its roots in 3C, has a strong user base and supply chain advantage. Its intelligent hardware strategy includes the JD Intelligent Cloud, JD+ plan, Super App, Crowdfunding, and WeChat integration. It's also investing in startups like BroadLink, showing early results.
While Alibaba seems less involved in smart hardware, it still dominates mature consumer goods. Last year, brands like Haier and Gree outperformed clothing, and this year, Xiaomi, Lenovo, and Meizu have taken the spotlight on Tmall. Xiaomi alone reached nearly 1.5 billion in sales. Despite Jingdong's lead, Tmall will likely enter the smart hardware space soon.
Smart hardware is gradually becoming a mass-market product, though it's still a work in progress. This year, Xiaomi’s smart bracelet appeared on Tmall, but sales were low. Even at 79 yuan, it couldn't match the success of Xiaomi TVs or tablets. However, Cobos, the robot vacuum, entered Tmall's top 20 best-selling products, with over 100 million in turnover. That shows smart hardware can succeed if it meets real demand.
Since Google Glass emerged in 2012, smart hardware has been in the spotlight—but it's still far from mainstream. Devices like smart watches, scales, and water cups remain niche products for tech enthusiasts. While smart routers and TVs have seen better adoption, most smart hardware is still a novelty.
In China, smart hardware hasn't fully entered the mass consumption era. Offline stores like Gome and Suning rarely stock these products, and online sales are still limited. A comparison with the U.S. shows a stark difference: BestBuy prominently features smart health devices, and smart wearables are widely available. When such products appear in Chinese offline stores, smart hardware could truly take off.
Many believe China is a few years behind the U.S. in tech trends. Just as the internet and mobile internet caught up, the same might happen with smart hardware. The future looks promising, but the journey is still long.
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