Industry voices: Generating New Profits From The Connected Home
A new opportunity is rising from the ashes of traditional CE retail for savvy dealers who are willing to leverage it. The opportunity exists because web-centered media, cloud computing and IP-based products are creating a new connected home ecosystem that requires an entirely different approach to service.
Forward-thinking retailers can monetize these new services, shifting their emphasis from low-margin product sales to focus on high-margin, connected-home services. The retailers that embrace this vision of the connected home will build next-generation services that go far beyond extended warranties and in-home installation. (For more on retailers selling into the connected home, see p. XX)
A clear picture of this opportunity emerges if we explore what the connected home will look like in a few short years. Here's a vision backed by real-life developments: Cloud-based software allows centralized control of all CE devices, from the smart TV to the cooling and heating system. Consumers use tablets and smartphones to manage temperature, lock doors, control video and music, start dishwashers or laundry, monitor the meal in the oven, receive notice that they're nearly out of milk and place an order for more.