preface:

September is China's "Quality Month". Jianboyun will deeply analyze the quality problems and standard formulation of the smart home industry from the perspective of the smart home industry, and guide enterprises to jointly explore a way to improve the Chinese smart home industry from "Made in China" to "Made in China" and then to "Made in China".

The rapid development of the industry has brought many chaos

In the development of smart home, the smart door lock is the first product to emerge, with high market maturity and many entrants.

According to the Sunflower big data "2021 China's Smart Door Lock Industry White Paper", in 2021, the total production of China's smart door locks will be about 18 million sets, with a year-on-year growth of 50%, and the overall sales volume will be about 13 million sets, with a year-on-year growth of 62%; It is estimated that this year, the production and sales volume of China's intelligent door locks will reach 24 million and 19 million respectively.

The market scale of intelligent door locks is still growing, and the industry is still in a growth period for the time being. Manufacturers entering this industry can be profitable. With more and more players, the chaos in the whole industry has been sustained after the lack of guidance of national standards and strict regulatory system. No matter the function problem, quality problem or even safety problem of the intelligent door lock, as well as the absence of after-sales service, the competition in the industry has become increasingly fierce, and the price has continued to decline.

The price war has seriously affected the product quality

The most effective way to seize the market is to reduce the price. There have been two price wars between Chinese household appliance enterprises. Pepsi and Coca Cola, the two major international giants of Coca Cola, also suffered from the price war.

As for intelligent door locks, due to the difference of various functions and the long production time of door locks, some people in this industry have mastered technical solutions, some have grass-roots algorithms, and some have the advantage of factory production. As the door lock market is hot, practitioners hope to seize the opportunity to launch their own products and make quick money in the market, which also led to the rise of price war.

As the saying goes, wool is on a sheep's back. When an enterprise starts a price war, it also means that the industry is about to undergo a reshuffle. In fact, consumers have not been able to enjoy real benefits. On the contrary, due to the price war, the quality control level of the intelligent door lock in the production process is reduced. It is likely that the product testing process is not strictly followed, but is reduced to a form.

Although the relationship between price and product quality is not necessarily proportional, the product quality corresponding to low price is generally worse, and the product with high price will be more reliable in terms of function and safety. If the price war continues for a long time, it is easy to cause market confusion, and consumers will have errors in their understanding of products, which makes it difficult to advocate high-quality development of the industry.

The price war will lead enterprises to reduce costs in the process of producing products, or even cut corners, affecting the quality and function of products. Once the price war starts, other manufacturers in the industry have to deal with it. In order to compete on price, only more and more low-cost products may appear, which often leads to quality defects.

Price war is not good for consumers

Many consumers may think that when manufacturers fight a price war, consumers can buy products at a lower price to obtain cost-effective products.

However, in the long run and in the future, the price war will lead to the decline of the profit margin of the entire industry, the pressure on capital will gradually increase, and manufacturers will have a hard time making money. The following chain reaction is that a number of manufacturers will be eliminated. In order to cope with the market, the remaining players can only find ways to reduce consumption in cost and production. It is difficult to increase investment in product development and design, and naturally will not consider improving product quality.

If consumers enjoy the preferential price war, they are likely to bear the lack of quality. Manufacturers, consumers and dealers will fall into a vicious circle, which is not conducive to the rapid improvement of product quality.

At present, the product functions of intelligent door locks are more and more similar, and the differentiation is smaller and smaller. The participating manufacturers need to improve the differentiation level of products and services to form a competitive advantage, rather than seizing the market through price war. In addition, manufacturers need to strengthen brand promotion, improve customer loyalty of products, so as to obtain more market share. Finally, manufacturers should reform their own operating efficiency, which will be the only effective way to get rid of price war competition in the future.