Google Case Challenge

Smart Homes Case

Case Overview:

Smart homes have a huge potential in India with the digital revolution and the emergence of JIO making the
cost of Internet dirt cheap. Smart homes are defined as defined as homes having at least one smart device
apart from Smart phones. Internet of Things is central to Smart Homes and with rapid advancement in IOT and
Increased awareness and acceptance of devices running on IOT makes this a lucrative market in India.

Total Addressable Market (TAM):

No of Smart Homes in 2019 in India are estimated at 4.2 Million with year on year growth forecasted at 92.5%
and assuming a year on year growth of further 15%. If we go by this conservative estimate the No of Smart
Homes in India are (See Table)

Year Growth Estimate No of Smart Homes

In Millions
2019 - 4.2
2020 92.5 8.085
2021 107.5 16.776
2022 122.5 37.32

Enablers to grow Smart Home Market in India:

Points of frictions in the consumer journey while purchasing Smart home devices:
India is a cost sensitive Market and Smart Home Solutions are costly. Further usage of Smart devices is still not
clearly defined. Indians are also apprehensive about the privacy issues surrounding Smart Devices like Amazon
Echo. Therefore, for smart homes to truly take off the prices have to come down significantly.

Critical use cases that can act as enablers for the Smart home growth:
If the smart devices somehow become integral part of the way we live like the Smart Phones have become,
then it can grow exponentially. The indulgence level of Customers in India is still low as compared to USA and
middle-class Indians don’t generally spend on something which is not essential.

Price points which can unlock mass market for the Smart home category:
India is a hyper price sensitive market. For example, it costs around ₹ 200-300 per square foot at this point of
time; so, just a basic smart home facility roughly costs about ₹ 2-3 lakh extra. It is very difficult for a middle-
class family to shell out such an amount for something they consider as a luxury. The Smart Home industry
needs a revolution similar to that of smart phone industry in terms of price cut and affordability.

Go to market Strategy

• As the smart home market is in the initial stage and yet to grow in the near future. Now awareness
about the product is more important than an intensive distribution channel
• E-commerce (Modern Trade) such as Amazon, Flipkart and others is the most effective distribution
channel to sell Smart home products as it has all the details mentioned and reliable user reviews
which plays a significant role in making buying decisions by customers nowadays
• Though, House Builder, Real estate broker, travel agent and many involved in home or hotel business
play a role to exchange communication about Smart Home products with the consumers. They are
important for Google in order to increase its product awareness and sales