Consumer Choice: Standalone or Bundled Smart Home Devices
As awareness and perceived need for smart home devices rises, shoppers are heading to national retailers to compare and purchase. Between 2014 and 2016, the share of sales as standalone devices has increased for over a dozen smart home product categories, including security, energy efficiency, convenience and comfort. Networked cameras show the greatest increase in share, increasing from 37% in 2014 to 62% in 2016.
And yet, sales are also growing for bundled devices and services, but still are being outpaced by growth in the standalone segment.
The challenge for marketers looking to merchandise single-use devices and bundles of smart home products and services is that there are thousands of consumer use cases for smart home systems and devices. One size does not fit all.
A recently published report by Parks Associates examines smart home merchandising strategies and consumer preferences for bundles versus build-as-you-go adoption.
This report examines the business strengths and weaknesses of merchandising options, emerging merchandising trends in existing and new channels, and consumer preferences for bundles versus build-as-you-go adoption and the purchasing methods they prefer. It also details trends in purchasing patterns and retail channel preferences while providing an analysis of key industry players from the security, broadband, and DIY arenas.