Is it too late for NetEase to enter the highly competitive smart speaker market?

NetEase finally sold smart speakers, but compared with Tmall Genie and Xiaomi speakers, the price is a bit expensive.

Recently, NetEase launched the first smart speaker named "NetEase Sanyin Cloud Speaker" on the JD crowdfunding platform. It is understood that this product is the first market-oriented C-end product developed by NetEase’s Artificial Intelligence Division.

The sales page of the speaker on the JD crowdfunding platform shows that the first batch of speakers is only open to 5,000 "co-creators", and the price is 799 yuan. After the end of the "co-creation", the price will return to 1399 yuan. In addition, consumers can also crowdfund the speakers through "999 yuan", "9990 yuan" and "selfless dedication" and get corresponding rewards. Raising 500,000 yuan for the speakers within 30 days is the goal.

Is it too late for NetEase to enter the highly competitive smart speaker market?

The relevant staff of NetEase Sanyin told 36æ°ª that the 30 days of promotion on the JD crowdfunding platform will be the co-creation stage before the product goes online. The main purpose is to recruit music lovers and NetEase to improve and iterate the product together, and to help NetEase integrate Better music products to consumers. Specifically, consumers mainly participate in co-creation in three ways: participating in marking music tags to help optimize the recommendation algorithm; providing user suggestions to enhance the listening experience; scanning the questionnaire QR code to share product software optimization opinions.

At present, "co-creation" is actually a kind of discount promotion in disguise. Unlike general discount promotions, consumers will also participate in product design and technical iteration. This interactive way of consumption is not only conducive to building the brand awareness of the new speakers, but also in the sales process, continuously optimizing and upgrading the hardware and accurately customizing products based on consumer feedback.

In terms of function and product performance, this speaker is basically similar to other smart speakers on the market. The more unique advantage is the association with NetEase Cloud Music. According to the information provided on the sales page, the speaker uses NetEase Music's big data algorithm recommendation to provide users with personalized content services. It is self-evident that NetEase Cloud Music can open up resources such as music and radio dramas.

Referring to the user portrait of NetEase Cloud, the main target users of this speaker will also be young people who have a certain consumption power, love to listen to music, and advocate a community atmosphere.

One trend is that many technology companies regard smart speakers as an important entry point for IoT, and make arrangements in this field. Whether it is software and hardware vendors such as Cheetah and Huawei, or Internet companies such as BAT and Xiaomi, they all entered this field earlier than NetEase. Its related products have also occupied a certain market share, among which the monthly sales of Xiaomi speakers and Tmall Genie have exceeded one million.

The price of Tmall Genie and Xiaomi Xiaoai speakers are both less than 300 yuan, which is far lower than the 1,399 yuan of Netease's Sanyinyun speakers. There is no advantage in price. In terms of content resource reserves, the speaker is not as good as the lower-priced Tencent Listening smart speaker. Backed by QQ Music, the country's largest music content platform, Tencent Listening clearly has more resource advantages.

At the same time, as a hardware product, technology and performance are critical, but it is clear that NetEase is not good at it.

Therefore, the main advantage of NetEase Sanyin Cloud Speakers lies in the loyal users deposited through NetEase Cloud. These users who love the two-dimensional and community culture have higher stickiness, greater willingness to pay, and ability than users on popular platforms. Play the "fan effect".

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