Who Knew Refrigerators Could Be So Smart 

A few weeks ago, I was in the market for a new refrigerator. While doing my research, I came across several “smart refrigerators”.  

In addition to performing the basic function of keeping food cold, these refrigerators could (I kid you not), 

• Look up recipes and recite the steps while you cook
• Track food items and create grocery lists  
• Provide notifications to use food while it’s fresh
• Use interior cameras while at the store to double-check if you’re low on milk or eggs

These appliances are no longer being sold as refrigerators ( physical effectiveness), but as nutrition centers (digital prowess).

It’s Not Just Refrigerators, Digital Is Everywhere

Pick up any industry, technology, or business magazine. Everything is now digital.

Services, like newspapers and banking, were the first to digitize.

• We no longer buy newspapers. We now consume the news digitally through a subscription.
• Similarly with banking, we don’t visit branches. We instead fire up an app to bank online. 

But the onslaught has not stopped there.  

• Cars are no longer about just getting you from point A to B, they are now the family’s second entertainment center.
• Homes are now smart homes, where everything is either Google Assistance or Alexa voice enabled.
• Even toilets have not been spared from the digital ambush. They are no longer about just taking care of “business”, but new wellness centers that analyze your diet and make nutrition recommendations.

This Is Just The Beginning, Appetite For All Things Digital Is Growing

If you think about it, digital is still relatively new. The first browser appeared in the mid 1990s.  

Yet, it has become so pervasive in our lives, that we now simply expect a seamless digital experience (or at the very least not a bad one).  

What was first a novelty, is now a must. Demand for digitally enabled products is skyrocketing.

Going back to the examples from above, 

•  New York Times has over 6.5 million subscribers, its digital revenue now exceeds print.
• Digital banking will have over 3 billion users by the end of 2021.
• Connected cars are expected to grow by over 25% in the next 5 years.
• Market share of smart refrigerators and other smart appliances are expected to jump to over 30% by next year. 
• Currently, 53% of people own a smart home device. One-third (33%) plan to invest in a smart home device in the next three years.   

And at a personal level.

I just opened a new savings account at a local credit union. After experiencing their online experience, I promptly closed it. 

And I am very tempted to buy the new Toto toilet. Not just because I find the whole concept fascinating but also because I have three boys and I can only imagine the jokes that will ensue (much to my wife’s chagrin).

So Where Do We Go From Here?

It’s not going to be long, before the digital aspects of your products will matter more than the physical.   

The physical will simply become a commodity. One can argue that it is already happening. 

Wealthfront, one of the fastest growing digital banks, is not really a bank. They are a wrapper. Stodgy old banks hold the deposit. Wealthfront manages the user experience. The customer is no wiser.   

Betterment, Hippo, Google Pay, and a slew of other FinTechs are doing the same. 

Roku sold more TVs than Samsung. Consumers are buying TVs based on the OS and not the manufacturer.

Apple is rumored to partner with an automobile manufacturer to create an Apple Car. Will it matter if the car is made by Detroit’s Big 3 or some factory overseas. As long as it is Apple certified.  

Eventually, digital not physical will reign supreme. Customers will base their buying choices based on the digital aspects of the product. 

The Big Question Is Are You Prepared For This?  

Sooner or later it is coming to your industry in one shape or another.  

Do you see this happening in your industry? If so, in what form? And how are you preparing for it? Please comment below.