How will digitalization transform the way we cook, wash our clothes and clean our homes? Electrolux is investing in connected appliances that enhance the experience for consumers and create new business opportunities.
A case in point is the 2017 acquisition of Anova, a leader in smart kitchen appliances. The Anova Precision Cooker is a device that uses connectivity to enable pro-level cooking at home, by helping consumers cook sous vide - a method long used in professional kitchens. To cook sous vide, food is placed in a sealable bag and cooked in a water bath with precise temperature control. This brings several benefits for consumers. Firstly, cooking is very easy and controlled via an app that contains a large recipe collection. Secondly, chances of perfect results are much improved.
To create a unique experience for the consumer is, at present, the biggest opportunity in connectivity. Further down the line, it will also bring new business models and revenue streams for Electrolux, says David Cronström, Head of Strategy & Ecosystems.
-Connectivity makes it possible to offer new experiences to consumers, for instance through value adding services, he says.
These services are likely to include product maintenance with remote diagnostics where problems can be detected, and sometimes solved remotely. Electrolux cookers will not just be able to help the consumer cook a meal like a pro through step-by-step guidance, but also offer inspiration by suggesting recipes and ingredients. A washing machine might automatically order more detergent when necessary. Connectivity will also bring new opportunities in how consumers can interact with their appliances, for instance with the introduction of voice control.
In the Group’s current offering, connected products such as the robotic vacuum cleaner Pure i9, the CombiSteam Pro Smart oven and the Frigidaire Cool Connect all offer consumers the convenience of remote control, monitoring and guidance. Apps such as the AEG Care Advisor help the user decode care labels and choose the correct laundry program for the type of stain and fabric.
Many of the new services require partners, e.g. to deliver food or detergent. Partnerships are also essential to create an ecosystem of products and services that adapt and work seamlessly with one another throughout the home. To this end Electrolux is partnering Google and Amazon, and is part of the Open Connectivity Foundation: a collaboration project toward open source code for connected products to ensure interoperability across brands and provide consumers with more choices.
Through its lifetime, a connected appliance will generate immense amounts of information about how it is used, problems that arise, service needs etc. Access to this sort of information requires the highest respect for personal integrity, and data security is also a basic requirement for connected products.
-Connectivity will be hugely important for our product development as this “big data” will help us create new products, adapt product performance to fit consumer behavior and thereby become even more relevant to our consumers, says David Cronström.