{"id":43819,"date":"2019-07-03T09:00:06","date_gmt":"2019-07-03T01:00:06","guid":{"rendered":"https:\/\/daxueconsulting.com\/?p=43819"},"modified":"2021-11-18T11:13:31","modified_gmt":"2021-11-18T03:13:31","slug":"smart-home-experience-stores-china","status":"publish","type":"post","link":"https:\/\/daxueconsulting.com\/smart-home-experience-stores-china\/","title":{"rendered":"Smart home experience stores in China: Experiential retail gaining popularity | Daxue Consulting"},"content":{"rendered":"\n

Smart home experience stores in China<\/em><\/p>\n\n\n\n

Smart homes<\/a> seem to occupy modern Chinese households more than ever. Lots of manufacturers are seizing flow to develop all sorts of new science and smart home products in China for the smart home market. According to Statista<\/a>, the revenue of smart home in China ranks second in the global market, with a market volume of $13 billion US in 2019.<\/p>\n\n\n\n

\"Experiential
[Source: Statista, April 2019 \u201c Experiential retail in China\u201d]<\/figcaption><\/figure>\n\n\n\n

With the changing retail environment<\/a>, smart home manufacturers are experimenting with new ways of retailing<\/a>, such as strategic partnerships with offline home furnishing stores. This article will focus on the offline smart home experience stores in China and experiential retail in China. <\/p>\n\n\n\n

Smart home technology in the Chinese market creates for efficient chores<\/h2>\n\n\n\n

With the accelerating pace of life, people have little free time, and as a result, the value of free time as a\nresource increases. With the help of smart\nhome appliance<\/a>s,\nChinese households can reduce time spent on daily chores. Therefore, smart home technology in the Chinese\nmarket has infiltrated the lives of many people. <\/p>\n\n\n\n

The era of the experience economy: Smart home experiential store in China <\/h3>\n\n\n\n

Consumers\u2019\nawareness of smart home\nproducts in China is far from its potential. Therefore, the sellers of intelligent home technologies educate buyers through smart home experiential stores in China. The smart home experience center in China\ncontains the whole smart home system and present in a complete interior\ndecoration. It provides customers immersive experiences with interactive set ups.  <\/p>\n\n\n\n

This direct-to-customer\ntactic is within the concept of experience\neconomy<\/a>: to engage customers to perceive products,\nvaluing experience in the process of consumption. As stated in the Harvard\nBusiness Review<\/a>,\n\u201cA company intentionally uses services as the stage, and goods as props, to\nengage individual customers in a way that create a memorable event.\u201d<\/p>\n\n\n\n

\"Smart
[Source: LivingLab smart home \u201cSmart home technology in the Chinese market\u201d]<\/figcaption><\/figure><\/div>\n\n\n\n
CONTACT US NOW TO ANSWER YOUR QUESTIONS ABOUT BUSINESS IN CHINA<\/a> <\/a><\/div>\n\n\n\n

Key to success for the smart home experiential stores in China<\/h3>\n\n\n\n

Resonance with images during\nthe in-store experiences in China  is the main\nobjective of the smart home experience store in China. <\/p>\n\n\n\n

\u201cNo empathy,\nno deal.\u201d.\u201d<\/p>\n\n\n\n

For example,\nin a study room, in the smart\nhome experience center in China, lights can automatically adjust the\nbrightness according to different scenes to create various lighting atmosphere.\n\u201cWorking mode\u201d will adjust enough light and the proper height of the working\ndesk and chair. \u201cRelaxing mode\u201d will play pre-set relaxation playlist, close\ndown the curtains and create a comfortable atmosphere. What the smart home experiential store in\nChina needs to pursue is to show customers, what benefits can the smart home products in China\nbring to them and how those devices can improve the quality of life in every\ndetail. <\/p>\n\n\n\n

\"Smart
\uff3bSource: Moorgen video center \u201cSmart home products in China\u201d\uff3d<\/figcaption><\/figure>\n\n\n\n

Successful\nmarketing promotes a brand through emotional resonance. Emotional communication\nin the smart home\nexperiential store in China is one of the most important aspects of the emotional marketing<\/a> strategy. The application of\nemotional connection in experiential retail in China\ncan impress the consumers\u2019 inner feelings, therefore improve their satisfaction\nand loyalty. This is the key for the smart home experiential store in\nChina to win in the experience economy era and enhance the\ncompetitiveness of the store.<\/p>\n\n\n\n

Experiential retail in China as a trendy concept in the smart home industry <\/h2>\n\n\n\n

The smart home technologies in the Chinese market use such advanced technologies\nsuch as the Internet of\nThings (IoT)<\/a> and wireless communication to gather\ntogether home-related facilities and provide home appliance control, such as\nlighting management, security protection, environmental monitoring, and\nentertainment. However, there are still a lot of questions coming from consumers on\nwhat the smart home system in\nChina really is. It is no longer effective for companies to simply explain these concepts to customers online.<\/p>\n\n\n\n

Smart home technology in the Chinese market: The transformation of the smart home business model<\/h3>\n\n\n\n

In reality, it\nhas been a long time that online retailing has relied on the rapid development\nof the Internet, and which has made traditional retail sales \u201cfalling into\nthe water<\/a>.\u201d However,\nthe current online retail traffic dividend has already encountered the ceiling,\nand it is difficult to expand the space further upwards. The retail\nchannel seems to have a bottleneck in the period.<\/p>\n\n\n\n

At this\npoint, the development of AI<\/a>,\nBig Data<\/a>, and Smart Connect technology provide\nopportunities for new reatil to help\ncustomers create shopping interactivity. The new retail<\/a>\nmodel combines online and traditional retail and effectively use the strengths\nof both. Experiential retail<\/a> in China, which is used\nin offline shops makes it easier to give consumers an intuitive feeling and\nenhance customer stickiness.<\/p>\n\n\n\n

How to do experiential retail in China? \u2013 6 dimensions of the retail experience<\/h3>\n\n\n\n

The main\ndifference between these retailers is where and how they place these devices\nwithin their store\u2019s layout and how well they help their customers understand the value proposition of a smart\ndevice. <\/p>\n\n\n\n

According to\nJLL Retail<\/a>,\nthere are \u201cSix Dimensions of Retail Experience,\u201d\nwhich define how well retailers are meeting shoppers\u2019 expectations. How can these\nsix dimensions apply to the smart home experiential retail in China?<\/p>\n\n\n\n

\"Smart
[Source: Daxue Consulting – 6 dimensions of the retail experience]<\/figcaption><\/figure>\n\n\n\n

Firstly, it must be intuitive. Customers can easily locate what they want after finishing the tour in the experiential store. Young people in China mostly prefer a simple style of layout.<\/p>\n\n\n\n

The strong human element is vital. Friendly and knowledgeable staff is really important to shoppers. Be careful to work with different shoppers, some don\u2019t like \u2018noisy\u2019 staff, and some need plenty of guidance to the smart home products in China.<\/p>\n\n\n\n

In addition, socially-conscious customers tend to have a meaningful purchase experience. Stores can attract customers by emphasizing their social responsibility initiatives.<\/p>\n\n\n\n

As mentioned earlier, the smart home experiential store in China need to be immersive. Customers are willing to experience something unique and visually stimulating. Especially in China, smart home experiential stores are mostly concentrated in one shopping mall, which requires each store to show something special to avoid the aesthetic fatigue of shoppers.<\/p>\n\n\n\n

Next, the smart home devices and payment method should be accessible. Make sure to have enough payment methods and give customers seamless in-store experiences in China. Do not let customers feel a gap between the offline experiential stores and online shops.<\/p>\n\n\n\n

Lastly, customers require personalized during their purchase experience. Personalization is not just about products, and it\u2019s also about service. In terms of the smart home system in China, which is private to every family, stores need to treat each shopper as a special guest. <\/p>\n\n\n\n

In-store experiences in China<\/h2>\n\n\n\n

Moorgen smart home<\/h3>\n\n\n\n
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\"Smart<\/figure>\n<\/div>\n\n\n\n
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\"Smart<\/figure>\n<\/div>\n<\/div>\n\n\n\n
\"experiential
\uff3bsource: Moorgen.com \u201cSmart home experiential store in China\u201d\uff3d<\/figcaption><\/figure>\n\n\n\n

Germany\u2019s Moorgen<\/a> smart home\nis the world\u2019s leading smart home manufacturer. With its own research and development of bus control and\ncloud technology, the company has developed more than 180 smart home products\nthat realize local and remote visual control. The localized industrial design\ninherits the user experience of simplicity, comfort, and humanity.     <\/p>\n\n\n\n

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\"Smart
[Source: Moorgen smart home in-store experiences in China]<\/figcaption><\/figure>\n<\/div>\n\n\n\n
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\"Smart
[Source: Moorgen smart home in-store experiences in China]<\/figcaption><\/figure>\n<\/div>\n<\/div>\n\n\n\n

The Moorgen smart home experience store in Shanghai has an\narea of around 1000m2 <\/sup>with dominate tone of white. The white color\npresents various themes with the change of lighting.<\/p>\n\n\n\n

The whole\ntour in the experience center is about half an hour, and the staff carefully explains every corner.<\/p>\n\n\n\n

Based on the\nsmart home system in China,\nthe Moorgen experience store displays the perfect combination of technology and\nfunction to restore the ideal state of home. Its\ncomprehensive smart home technology effect maximizes the engagement of customers in their in-store experiences in China.\nThe entire experience center is designed\nas a real home, and there are control panels that adjust the modes of \u2018leaving\nhome\u2019 and \u2018returning home\u2019 at the store\u2019s entrance.<\/p>\n\n\n\n

The Moorgen\nsmart home experience store combines Chinese and western elements and attaches\ngreat importance to the family values of Chinese consumers. Its home theater showroom has both Chinese and\nWestern decoration themes, and a small film is provided for customers to\nexperience the screening effect. <\/p>\n\n\n\n

\"in-store
[Source: Moorgen smart home in-store experiences in China]<\/figcaption><\/figure>\n\n\n\n

Lighting <\/a>is\nthe key element in the Morgan experience\ncenter, and the store values the experience and effect brought by different\nlights to customers. The changes in color temperature<\/a>,\ndirection, and intensity of lights can\npresent disparate effects. For example, there is a tiny Buddhist temple in the\nexperience center for some wealthy Chinese families. The Buddha statue can\nchange facial expressions according to the different angles of the light source.\n<\/p>\n\n\n\n

\"In-store
[Source: Moorgen smart home in-store experiences in China]<\/figcaption><\/figure>\n\n\n\n

Morgan has\nopened lots of smart home experience centers in China, and it has become a\nplace for many young people to \u2018punch in\u2019 due to the high-end design. It allows\ncustomers to take photos in its stores and share their in-store experiences in China. Besides,\nbecause of the beautiful background and lighting, many customers actively share\npictures to their social platforms such\nas WeChat moments and Xiaohongshu<\/a>.\nThis may be one of the best marketing\ntactics for the smart home\nexperience center in China. <\/p>\n\n\n\n

Opportunities for foreign smart home companies in China<\/h2>\n\n\n\n

In\nconclusion, there are several suggestions that international\ncompanies entering the Chinese smart home\nmarket have to take into account. Firstly, convenient retail channels are essential. Combining online and offline retail to make smart\nhome products more accessible to customers. Additionally, design a humanized,\nfunctional, and one-stop offline experience store providing an immersive\nexperience for customers and let them feel for the details, such as lighting\nand temperature. Finally, remember to promote the smart home experience center\nthrough customer communication or social networking.<\/p>\n\n\n\n

Author: Rita Fan<\/p>\n\n\n\n

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Our report on smart home devices in China:<\/h2>\n\n\n\n