IN THE ERA OF SMART HOMES AND INTERNET OF THINGS (IOT), connected appliances are not a new idea. In fact, the first announcement of an "Internet refrigerator" dates as far back as 1999. Even today, many brands in this market have been having difficulty connecting with today's consumers. SO THE QUESTION BRANDS MUST ANSWER IS: How do you create added value through smart appliances? SMART CONNECTED VS. SMART APPLIANCES APPLIANCES Can alert the user to changes and information, but ultimately relies on the decision-making of the owner Utilize an internet connection Remote access through devices May include smart appliance functions By learning about the users and their behavior, these appliances can react to certain situations on their own Enhanced features & functionality Adapt to user habits May be connected to the internet APPLIANCES ARE SMART WHEN... REFRIGERATORS OVENS Check for expiration dates Suggest recipes based on what's available Send shopping lists to grocery stores for auto-fulfillment Sync with the fridge on a recipe and preheat in preparation Cook the perfect meal using image recognition Automatically schedule repairs when issues are detected MILK EGGS JUICE DISHWASHERS Adjust the temperature based on materials being washed Share information on how much energy is being consumed Stop operations when issues are detected CLOTHES WASHERS/DRYERS Set wash settings based on the fabrics in the cycle Recommend new detergents with a coupon Stop the drying process when clothes are dry IOT IN THE HOME PRESENTS HUGE OPPORTUNITIES GENERATED IN REVENUE IN 2014 $ 79.4B WORTH BY 2025 $ 200- 350B OF U.S. CONSUMERS HAVE AN INTEREST 65% THE SMART APPLIANCE MARKET IS EXPECTED TO GROW AT A CAGR OF BETWEEN 2015 AND 2020 15.4% ESTIMATED SHARE OF SMART APPLIANCES SHIPMENTS BY 2020 ASIA PACIFIC 68% AMERICAS 16% EUROPE 12% MIDDLE EAST & AFRICA 4% CREATING VALUE THROUGH SMART APPLIANCES WHAT BRANDS CAN DELIVER Meaningful features & capabilities that speak to consumer needs An integrated ecosystem of appliances and devices Strategic partnerships on unique customer-focused services Enhanced customer relationships through data and analytics Centralized e-commerce opportunities Trustworthy products that reliably deliver benefits HOW CONSUMERS CAN BENEFIT Significant time savings through chore automation Assistance in decision-making through data and analytics Special offers and incentives through usage information Immersive brand experience that solves needs Trusted partnerships and exposure to new products and services THE GREATEST IMPACT TO CONSUMERS? CHORE AUTOMATION. 1. Gather data on daily usage patterns 2. Determine household preferences 3. Begin scheduling own work routines THE HOW THE WHY Reduced human workload 17 % 100 7-9 % Hours saved per year in the typical household Households in advanced economies that could adopt smart appliances by 2025 SOURCES "AHAM's Industry Data & Research." AHAM. Association of Home Appliance Manufacturers, <http://www.aham.org/>. "2016 Global Mobile Consumer Survey: US Edition." Deloitte. <https://www2.deloitte.com/>. "Smart Home Market." MarketsandMarkets. <http://www.marketsandmarkets.com/>. "Mckinsey: IoT in the Home Worth $200 Billion to $350 Billion In 2025." SMAhome. <http://mysmahome.com/>. "Smart Major Home Appliances Share by Region 2014-2020." Statista. <https://www.statista.com/statistics/424142/smart-appliances-market-segmentation-by-region/> "Opportunities and Challenges in the Smart Appliances Market." Market Research. N.p., n.d. Web. <http://blog.marketresearch.com/opportunities-and-challenges-in-the-smart-appliances-market>. "Smart Homes and the Internet of Things." Atlantic Council. <https://otalliance.org/>. "Less than 5% of U.S. broadband households own a smart appliance." Parks Associates. <http://www.parksassociates.com/blog/article/pr-07202016> TO GET CONSUMERS TO ADOPT SMART APPLIANCES... BRANDS HAVE SIGNIFICANT CHALLENGES OPPORTUNITY IS KNOCKING... BUT CONSUMER AWARENESS Many still don't understand what smart appliances are PRICE It doesn't make financial sense for consumers – they don't see the value SECURITY/PRIVACY Recorded daily data and worries of hacking raise concerns ECOSYSTEM The lack of seamless app and device integrations are a barrier 40% < 5% 18% 18-35 OF CUSTOMERS ARE WILLING to share data in exchange for incentives Of U.S. broadband households OWN A SMART APPLIANCE OF CONSUMERS PLAN TO BUY a smart appliance in the next 12 months AGE OF CONSUMERS MOST LIKELY to adopt smart appliances