From Novelty to Necessity

The smart home finally finding it's Why?

Out goes individual smart home products with 'wow' factor, novelty, and dubious future convenience. And in comes orchestrated products that work with our decarbonising home energy system.  Addressing motivating consumer needs and presenting a compelling reason for adoption, by making our homes more efficient, cost-effective and sustainable. Major brands like Samsung, LG, and Haier put a big focus at the show on harnessing smart home appliances to optimise energy storage and use.

By integrating high-energy appliances - such as washing machines, dishwashers, and air conditioners - with home energy infrastructure like solar panels, batteries, and EV chargers. These integrated systems offer customised energy-saving modes tailored to a home's unique needs. Intelligently managing peak energy loads and adapting to the grid's carbon intensity. Advanced features even auto-adjusted appliance settings and timings for optimal green and cost-efficient operations. With homeowners able to monitor their carbon footprint in real time, compare their usage to comparable households and even predict their monthly bills.

Marginal Impact Sustainability

Piecemeal steps and performative changes to the way products are made.

Sustainability was predictably a key theme at IFA. Heartening to see it on the agenda at this commercial stage – after being championed for years by advocacy groups and niche purpose driven brands. Most efforts on display felt piecemeal, and at times, performative. As sustainability becomes a mainstream concern, major brands were keen to highlight their product and operational sustainability progress. Yet, these initiatives often spotlight incremental changes – like improved materials or energy efficiency – rather than the systemic shifts needed to have a greater impact to tackle the growing e-waste problem and climate change.

Samsung made a concerted effort to present a broad sustainability picture, dedicating a substantial section of their massive pavilion to "resource circularity". They dove deep into their product manufacturing processes and life cycles, highlighting efforts from utilising post-consumer waste, innovations in tooling design and plastic finishing to the transition to 100% renewable energy in their operations. Yet, their long-term "recycled materials road map" – targeting 100% recyclable plastic usage by 2050. Taking 27 years to get to 100% recycling material feels disappointingly distant given the climate imperatives.

Bosch, showcased their "Green Collection," featuring energy-efficient fridge freezers and dishwashers made with "CO2 reduced steel". Whilst Urbanista and Samsung revealed self-powered products. Devices, ranging from remote controls to headphones, employing advanced solar panel technology to enable indoor and outdoor charging as you use the products.

Brands are treading cautiously. Their sustainability measures, appear iterative, to cause the minimal disruption to current supply chains and business practices. Revealing the overarching challenge: How do we shift from our entrenched linear systems to genuinely circular ones? Right now, no one has all the answers. Global brands and manufacturers need to start being proactive leaders, not just reactive to market changes and the best practices of advocates and purpose led companies like Fairphone to finally start delivering greater impact.

From my personal experience there's genuine enthusiasm for deeper change within corporations. Passionate individuals and teams are working on radical changes to come. However, they grapple with the realities of established markets, legacy supply chains, and existing economic models. For now, brands are picking the low-hanging fruit, waiting for the broader economic, societal, and regulatory landscape to catalyse a more profound shift.

Hardware Relationships

Proof of concept subscriptions for recurring relationships with customers.

Manufacturers traditionally have closer ties with distributors and retailers than customers. Motivated by the success of recurring revenue models in digital products and car leasing. They are continuing to explore 'product as a service' models at a small scale. Offering adaptability to changing family needs, making high-end appliances more affordable and sometimes more sustainable.

Bosch's parent company introduced BlueMovement, allowing rentals of premium Bosch and Siemens appliances from €11.99/month. 97% of returned items are refurbished, with products reused up to 7 times across their customer base. Haier's Washpass offers a more integrated solutions with a novel washing machine with their subscription. For a €150 initial payment and monthly fee of €18-28, users receive a machine that promises professional results with a unique detergent system. Auto adjusting its formulation to the specific needs of each laundry load. They claim the system improves stain cleaning by 25-70% compared to regular washers. However, it's uncertain if these models will overshadow the appeal and simplicity of replacing old appliances when they break, or when we move house or renovate.

The Great Halls of China

The mass production behind the tech curtain.

Global and regional brands' eye-catching products and booths contrast with the generic products of Original Equipment Manufacturers (OEM’s) in the Global Markets halls. OEM's present a myriad of everyday products, from LCD clocks, steam irons, refrigerators to smartwatches and smart bird feeders that mirror designs established by global brands and break through start ups. Providing affordable alternatives for distributors and retailers. Over coffee and snacks, specifications, lead times and quantities are discussed and deals made.

The vast range of products on offer is astounding and highlights the sheer scale of the product industrial complex where each of these products are manufactured in their 1000's, day and night. While some items are essential, many cater to impulse buying, adding to our waste issue. The UN estimated 54 million tonnes of e-waste was generated in 2019, with only 42.5% recycled in Europe, and even lower in the U.S and Asia. Despite some sustainability efforts by global brands and purpose driven companies, e-waste is projected to grow 40% by 2030. So a pressing need exists to reform our product manufacturing system that delivers this tidal wave of products to the market each day.