A swell of smart door locks
New research from Parks Associates suggests that smart door locks are here to stay — and then some.
According to the research firm, annual unit sales of smart door locks will reach 1.68 million by 2021. That's an increase of more than 75% between now and then.
Additionally, annual sales revenue from smart door locks will exceed $357 million in the same year, up from $207 million in 2017.
"Adoption of smart door locks continues to increase, with annual unit sales projected to increase by more than 75% from 2017 to 2021," said Brad Russell, Research Analyst, Parks Associates. "The increase in adoption will lead to a $150 million increase in annual sales revenues during that period."
The only thing that might slow this progress are the high upfront costs. As of right now, a lot of consumers are still put off by the large disparity in price between connected and unconnected models. Additionally, many consumers have lingering concerns about wireless security breaches.
"One-half of consumers view smart door locks and smart video door bells as unaffordable," Russell said. "This is a significant challenge for the smart home market. The average price of a smart door lock is $220 while traditional non-connected door locks can be purchased for $80-$100. Innovators and early adopters clearly recognize the value of smart home products, but the early majority of U.S. consumers sees only marginal value, which is insufficient to justify the premium price for smart products."
Hagedorn ‘encouraged’ by consumer behavior
Marysville, Ohio-based Scotts Miracle-Gro Company saw “unexpected challenges in the mass retail channel,” but the company pulled off a 5% gain in U.S. consumer sales in the third quarter.
Overall for the period ending July 1, Scotts reported net sales of $1.08 billion, up 8% from the same quarter last year. Net income, however, declined 29% to $151.9 million.
Income was affected by divestiture of Scotts Lawn Service. Income from continuing operations was $151.9 million, up from $127.0 million in the same quarter last year.
“Our U.S. core business had a solid quarter, making up ground from a late break to the season and some unexpected challenges in the mass retail channel,” chairman and CEO Jim Hagedorn said.
The company’s Hawthorne Gardening Company subsidiary — formed in 2014 to focus on the urban and indoor gardening market — saw sales growth of 21% in the quarter.
Year to date, the company says it had expected more in the U.S.
“While sales in our U.S. consumer business are behind our original expectations, there are several positive stories behind the numbers,” Hagedorn said. “Entering August, consumer purchases of our branded products in home centers and hardware stores — which constitute nearly two-thirds of our sales — were up more than 4% with gains in nearly every major product category.
“Clearly, we’ve seen challenges in the mass retail market this year due to tighter inventory management and changes in merchandising strategies. That said, we remain encouraged by the success of our new product launches this year and by the fact that consumers remained engaged in lawn and garden activities and continued to seek out our brands.”