by Stuart Tickle, Managing Director at AWE
For this issue, I’m looking at why adding value through installation is a wise move for electrical retailers looking to grow their business. Of course, you know this already as installing white goods is common practice, let alone entire kitchens. Having been through the process in my own home recently, kitchens are custom installed and complicated!
And the good news is, you’re already one foot in the door. As the electronic and electrical products that you already sell become ever more connected as standard, “smart home technology” becomes more mainstream. As such, the demand for professional installation services is huge and expected to rise significantly over the coming years. As I mentioned in my last column, the UK professional smart home industry is already worth an estimated £2.9 billion* and is projected to grow further in the next 12 months.
Within this growth projection, the categories expected to grow the most over the next 12 months are media rooms, home cinema, outdoor AV systems, and lighting/shading. Electrical retailers are well-positioned to tap into this market by offering not only a wide range of products, but also a professional smart home design, installation, and maintenance service. Consumers of mid to high incomes are keen to work with experts on this. The question being, is that you?
The key advantage that independent retailers have over the likes of chain and online retailers is local expertise, strong customer relationships and the ability to offer a truly exceptional service – something that big retailers simply can’t contend with via a call centre. By providing a comprehensive range of in-home services, independent retailers can differentiate themselves even more in a competitive market and build on their reputation as trusted experts.
Diversifying into or expanding within this market opens the business opportunity for increased revenue streams and positions retailers as a one-stop-shop for all things smart home related. As well as the value-added sale of various products you already stock and sell, such as big screen TVs, you can leverage existing skill sets and space in your business to offer home cinema projectors for those sporting events and Netflix, enhanced audio systems to maximise Spotify and movie soundtracks, wireless security cameras for peace of mind, and home control solutions for ease of use.
As a local business, you can be trusted to offer ongoing maintenance services, software updates, and customer support, creating further opportunities. This not only boosts immediate profits but also fosters long-term customer relationships, as clients are more likely to return for all their future needs and upgrades.
While there is a huge business potential for moving into the integration market, there are also challenges. Technology is constantly evolving, so it’s important to invest in on-going training for your teams. As well as enhancing existing skills and learning new ones, professional development of your staff in this area can promote recognition and credibility for your business, as well as helping your team members to advancing their career with you beyond who walks into the store next.
Navigating the challenges of moving into smart home requires planning and investment in staff training, marketing, and potentially, infrastructure. Success in this market depends on your ability to adapt to the fast-moving technological changes in smart home, building your aftercare and support packages, and offering a reliable installation service – but it’s within reach and worth it to have a slice of this £2.9 Billion UK market.
A key date for your diaries is our AWE Expo, taking place on 14-15 May at our HQ in Epsom. This is a showcase of innovations from our partner brands, with technology displayed in situ throughout the AWE Show Apartment – which includes two cinema rooms, a media room, games area, music room and more. It’s an opportunity to experience the performance and possibilities of a range of solutions and see what’s achievable for varying client budgets. You can also speak to smart home experts, have your questions answered and gain advice on building a robust smart home business. Head to awe-europe.com to secure your place.
Another resource for electrical retailers is CEDIA’s education program. CEDIA has developed two new education packages, which are a great starting point for electrical retails moving into smart home – Smart Home Technician Essentials and Smart Home Technician Further Skills.
A notable area of growth for us here at AWE has been dedicated control solutions that bring connected devices together. We work with URC, an affordable yet powerful and scalable control solution – it’s a great entry-level solution for introducing smart home control to customers. Scalable solutions, such as the Expressway Software and processor from URC, provide a straight-forward sell-in opportunity with an opportunity to scale-up and add services in the future – starting at just £500.
*Sources:
CEDIA UK Professional Smart Home Market Analysis 2023
