CONCEPCION Industrial Corp., known for its refrigerators and air-conditioning units, may release its smart appliances, mainly its core products, next year, as it signed a memorandum of understanding (MOU) with Ionics Inc., another listed company.
Raul Joseph Concepcion, Concepcion Industrial CEO, said the new generation of products would allow the end-user to monitor and regulate the performance of units, real-time, based on various inputs the unit feeds into a gadget that connects its user online, through the use of the so-called Internet-of Things.
The MOU was signed by Concepcion and Larry Qua, chairman and chief executive of Ionics.
“The MOU is in line with our vision to build better lives by using smart solutions in our products, which will provide comfort and convenience to our consumers. To be able to realize this vision, we are forming a strategic alliance with Ionics to help us develop and apply the technology to our locally manufactured appliances,” Concepcion said.
The two companies already forged a partnership last year for a co-development deal, the outcome of which will be used for its new line of air-conditioning units, refrigerators, escalators, elevators and building controls, among others.
“About 50 percent to 70 percent of what we sell is made in the country. Most of our competitors produce highly advanced products in the P250,000 to P300,000 price range. Our aim is how we abide with the Internet of Things for basic refrigerators so that the average consumer in the Philippines can now get the benefit,” Concepcion said.
He said the products they will develop will then be available for both the consumer and commercial sectors.
“This is an emerging trend that will offer Concepcion Industrial’s new insights into how our products are used, as well as opportunities to build a foundation for new services that will have a direct impact on the lives of our consumers and to our environment,” Concepcion Industrial Chief Information Officer Sean Byrne said.
Both Concepcion Industrial and Ionics acknowledged that the so-called Internet of Things is not yet popular in the Philippines compared with other countries.
The theory has remained a concept for many countries since there’s little commercial and consumer application to it. The deal hopes to bridge that gap by creating appliances, such as smart aircons and refrigerators, that can be applicable to a country like the Philippines, which is known in the region for its slow Internet speeds.
The officials did not state the revenue-sharing agreement for the sales of the product they will produce. The MOU will become the building block of the new market it will create.
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Proud of Concepcion Industries resilience despite competition from foreign products.Kudos