What's New

1. Technological Innovation: The Key to Breaking Homogeneous Competition

• Focusing on cutting-edge technology development:

Biometric recognition (e.g., 3D face + vein recognition), AI algorithms, and IoT connectivity has become crucial for industry advancement. For example, Haier's Casarte brand has enhanced its product’s technological barriers and user experience with the "Tianji" fully automatic silent lock and triple biometric recognition technology. Companies should increase R&D investment to develop differentiated features (such as remote monitoring, smart home integration) and avoid falling into low-end price wars.

• Driving the upgrade of industry standards and security: 

The formulation of industry standards (such as the “Smart Lock Installation and After-Sales Service Requirements and Evaluation Standards”) will regulate the market and improve product quality. Companies should actively participate in setting standards and strengthen cybersecurity measures to prevent malicious attacks, thus enhancing consumer trust.

2. Differentiated Competition: Market Segmentation and High-End Transformation

• Targeting the mid-to-high-end market: 

Low-end products account for over 60%, but national subsidy policies (such as the "National Subsidy" continued in 2025) are stimulating demand in the mid-to-high-end sector. For example, products priced above 2,000 RMB saw significant sales growth in Q4 of 2024. Companies can introduce high-value-added products (such as artistic designs and whole-home smart integrations), improving profits through brand premiums.

• Exploring segmented markets: 

In addition to the residential market, companies can expand into commercial, industrial, and special scenarios (such as vehicle locks). For instance, hotel smart locks need to enhance management features, and industrial locks must improve security levels. Haier, through collaborations with high-end home brands like Boloni, is capturing the customized market.

3. Service Upgrades: From Selling Products to Selling Solutions

• Strengthening full-lifecycle service: 

Installation and after-sales service are key pain points for smart lock users. Haier has enhanced its competitiveness through the "one-stop delivery and installation" policy and a nationwide service network. Companies can adopt similar models and use service as a differentiated selling point.

• Enhancing consumer education and experience: 

Through online and offline promotions, smart lock security and convenience can be popularized, especially targeting lower-tier markets. For example, using short-video platforms to showcase product features helps lower the consumer's cognitive barrier.

4. Market Expansion: Exploring New Growth Opportunities

• Expanding overseas and targeting international markets: 

Amid fierce domestic competition, overseas markets in Southeast Asia, Europe, and the U.S. have become new growth points. Chinese smart locks have advantages in cost-effectiveness and technology, requiring the establishment of localized channels and service networks.

• Integrating into the smart home ecosystem: 

Collaborating with smart appliances and IoT platforms (such as Haier Smart Home and Huawei HarmonyOS), achieving interoperability between locks, lighting, air conditioning, and other devices, can increase user stickiness.

5. Industry Consolidation and Cooperation: Optimizing Capacity and Competitive Order

• Eliminating outdated capacity: 

Leading companies can consolidate small and medium-sized manufacturers through mergers or technology partnerships, reducing low-end overcapacity. For instance, leading brands such as Huawei and Xiaomi continue to expand their market share, increasing industry concentration.

• Collaboration and resource sharing: 

Industry associations can take the lead in establishing technical sharing platforms to reduce redundant R&D; companies can jointly procure to reduce costs and explore new channels through cross-industry collaborations (such as with real estate developers and renovation companies).

6. Policy and Capital: Leveraging External Resources to Break Through

• Utilizing policy dividends: 

National subsidies and smart city policies (such as old community renovations) provide market space for mid-to-high-end products. Companies should adjust their product structure to focus on policy-supported areas.

• Capital-driven innovation and expansion: 

Bringing in strategic investments or financing through public listings can support technological R&D and overseas market expansion. For example, leading companies can use their capital advantages to accelerate ecosystem development and create a moat.

Conclusion:

The smart lock industry’s breakthrough requires a combination of technology, market, service, and policy resources, shifting from a “price war” to a “value war.” Companies should clearly define their positioning (e.g., high-end brands or niche market experts), build core competencies through innovation and service, and pay attention to long-term opportunities in overseas markets and the smart home ecosystem. Though industry reshuffling is intensifying, leading brands and differentiated players will experience structural growth.