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Amazon forays into smart home industry with Experience Centers

Amazon’s customer obsession seems to be reaching the next level. It wants to convert a normal home to “smart home” with the help of smart devices controlled by Alexa. The ecommerce giant announced yesterday that it’s joining hands with country’s largest homebuilder Lennar (LEN) and launching “Amazon Experience Centers”. Lennar has set up model homes with various products which are controlled by Alexa. Customers can now get the smart home experience in eight locations across the US with more centers on the anvil.

The smart homes are equipped with Fire TV, Prime streaming services and dash buttons for ordering products from Amazon. Customers can also see how Alexa-enabled automation products work seamlessly where one can control all connected devices, like thermostats, TVs, window blinds and lights. In addition, customers can order services for their daily chores through Home Services.

Amazon Smart Home
Amazon Smart Home Powered by Alexa

By opening these centers, Amazon is adding one more physical touchpoint for customers to experience a wide range of its products and services under one roof. It already has Go stores opened in Seattle where no check out is required. It purchased Whole Foods last year which helps in broadening its “physical reach” across the country. The smart home foray will help the company bring closer to consumers and understand their shopping habits, which would help it to stay ahead of the competition.

Last year, Apple partnered with Brookfield Residential to offer its “Home Kit” technology, which would help users to control Home Kit-connected devices from any Apple devices including Siri. McKinsey says the smart home market in the US has been growing at a CAGR of 31% for the last three years.

The battle for understanding consumer habits and tweaking its services is getting intense between Amazon (AMZN), Google (GOOGL), and Apple (AAPL). For now, Jeff Bezos is taking a lead to get into your homes.

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