Exploration of Innovative Business Models in Social Robotics: Case Study of Companion Robot

ABSTRACT

This case study explores the innovative business model adopted by a Japanese company, for its emotional companion robot. Unlike traditional function-oriented robots, The firms focuse on emotional connection and human-robot interaction. By integrating hardware sales, subscription services, and personalized emotional experiences, it has created a unique three-in-one value chain. Its bio-inspired design (such as simulating body temperature, tactile feedback, and an AI emotional engine) caters to the growing demand for companionship in an aging society and the "loneliness economy". Despite facing high production costs (with a single unit BOM cost of approximately $1,800) and privacy and security challenges, the firms have significantly increased customer lifetime value (LTV increased by about 2.7 times) through the Robot-as-a-Service (RaaS) model, with about 35% of its sales coming from nursing home users. This case demonstrates the huge potential of emotional robots in redefining human-robot relationships and commercialization models.

LEARNING OBJECTIVES

• Understand and analyze the hybrid business model architecture in the field of social robots and master the comprehensive business model that integrates hardware sales, subscription services, and the monetization of emotional value.

• Evaluate the commercialization strategies of emotional technology products and establish a framework for technological value transformation and customer segmentation in the emotional technology market.

•