Consumer Products Blog
IFA 2010 – The end is near for consumer products companies
By Rachel Harker - Last updated: Wednesday, September 8, 2010I’ve been predicting the demise of the consumer products company for a while now. It doesn’t make a particularly happy message for most of our clients, who are indeed consumer products companies. But, the industry is changing and firms can’t rely on innovative consumer product developments alone any more. The focus on growth by selling more and more devices is outdated. Consumers are getting more sophisticated, and the changes brought about by the web and new media distribution models means they are increasingly looking for a service offering instead. My view has been reinforced today by Michael Rodin at IBM who is quoted as saying:
‘CE [consumer electronics] manufacturers must rethink the way they innovate. They must deliver products and services that leverage the Internet to collect and analyse data and create new value. They must foster new and direct relationships with their customers. They must be able to protect consumer privacy. And most importantly they must recognise that their products are part of a broader eco-system, a so called ‘Internet of things’. Hear hear Michael.
