|What determines the quality of the quality that products provide?|
Some 30 years ago, consumer durable products were all about durability.
But today, consumers look for a way lot more.
Not only do they want the latest technology at the lowest prices, and convenience without causing great harm to the environment, but they also want products that are fresh.
A huge chunk of today’s consumers believe in showing off their investments. Whether it’s a new phone, new gadget, watch or washing machine.
The newness appeals to the market and consumers who have the buying power, jump on the opportunity to own the latest tech in town. However, soon afterwards, these newly launched FMCD products face a huge price drop and a struggle to find profits.
Price skimming is one of the biggest strategies driving the consumer durables market today.
That, along with Recency, determines the buying behaviours of the average consumer today.
So, finding the right retail stores at the right time when demand is high, has become crucial to optimize sales and revenue.
Luckily, today’s retail technology makes this a reality, where each retail shop’s demand and selling potential can be determined at a granular level. The manufacturer can predict the order for every shop where their products sell, making sure that over-stocking is eliminated.
Store owners can even use mobile apps to connect with the company directly and place orders for products, ensuring demand and supply happen in tandem.
Moreover, with most products coming with a one-two year warranty, consumers are now more focused on the product’s capabilities and the service provided by the manufacturer, rather than durability.
For example, if you buy a BoAt product and it gets damaged under warranty, the company will pick up the product from your home, fix it for you and send it back, at no additional cost.
Crazy to think that one of India’s biggest consumer electronic brands will be willing to fix every damaged product of theirs.
But what BoAt is cleverly doing is, it’s creating a sustainable future for the brand and its products.
The company is reducing waste and building a more consumer-centric brand where consumers would feel compelled to buy their next electronic product from BoAt, just for the service quality.
Sadly, most consumer durables companies are yet to combine retail intelligence with retail strategies to discover untapped market opportunities and shape their supply chains to become more flexible and stronger.
Do you face similar dilemmas? Come explore what 21st-century FMCD brands need, to get an edge over their competitors. The edge that drives the consumer to swipe their card.
Mail us at firstname.lastname@example.org and schedule a discussion with our supply chain experts.