The pandemic paves the way for sustainable consumer brands to review their business strategy
New Delhi [India], Jan 31 (ANI/NewsSee): BASES, a NielsenIQ company, has released the results of its latest study which highlights just how open consumers are to new business models in the durable goods and electronics industry. electronics in India and other countries after the pandemic. In an effort to understand how manufacturers of durable goods can keep consumers engaged and improve their experience post-pandemic, NielsenIQ BASES finds among different business models, Product Service Systems (PSS) as the most sustainable for large brands. sustainable audiences. The global study, conducted in the United States, Germany, Brazil and India, highlights that engaging the customer throughout the product lifecycle by adopting new business models will prove beneficial for brands.
“Extending the relationship between a company and its customer, beyond the point of sale, opens up new opportunities for brands to engage with customers to understand customer demographics, gather important performance and usage feedback , and deepen the customer relationship by better meeting their needs,” said Vidya Sen, Head of South Asia, NielsenIQ BASES. In order to provide personalized services to their customers, brands need to look for options that meet the needs of the user. The study talks about two variants of product-service systems (PSS).
– Product oriented Ownership of a product is transferred but additional services are offered to consumers. -Usage-orientedThe property of a product remains unchanged, but the usage is made available to consumers.
In India, the COVID-19 pandemic has reinforced that consumer goods companies need to evolve the way they interact with distributors, retailers and end consumers to drive growth and increase profits in the years to come. to come. The study finds that, from investing in new digital capabilities, to updating business models, to transforming CX into a critical competitive differentiator, it could help brands keep consumers engaged and to meet their expectations. “In India, adding services, customization, automation or rental options gives manufacturers the opportunity to introduce more ongoing revenue streams. Depending on the business model, manufacturers can add small incremental revenues throughout the product lifecycle or shift part of the investment to the period of use, as is the case with leasing models,” Vidya said.
Product automation is universally attractive The product automation model is ranked number one not only in India, but also in the United States, Germany, and Brazil. Indian consumers, for whom it is always important to have the latest technology, believe that product automation is the way forward for sustainable brands as it will enable customization and deliver an efficient result.
While price was important to consumers in the United States, Germany and Brazil, product quality, support and after-sales service emerged as crucial factors for Indian consumers when it comes to automated products. Personalized beauty care products appeal to consumers around the world
In the personalization space, beauty-focused personalized appliances are generating maximum attention in India, while oral care and cooking are attractive in the United States and Germany. A personal care device that collects information and suggests improvements to personal care routine or a toothbrush that analyzes teeth and suggests products for oral health needs or even a hair dryer that analyzes hair and suggests styling treatments/products is what attracts global consumers. The study also reveals that, contrary to belief, consumers do not trust celebrities and influencers when deciding to buy such products. Research reveals that communities of like-minded consumers and professionals also attract consumers. Adopt the circular economy model
As consumers become more discerning and demand that companies be responsible, they are turning to companies that engage in circular practices. For consumers, this means buying sustainable products that are recyclable or made with recycled materials; keeping them in service for a long time through effective maintenance and repair, or ensuring responsible end-of-life actions so that little or no waste is generated. For companies, this includes developing products and business models that eliminate waste by design, reducing the use of raw materials, and planning for the return/retrieval of products and packaging, among other actions. In India, consumers see manufacturers of large durable goods, electronics and small kitchen appliances as more suited to the circular economy. However, prices remain a big concern for them as they are not comfortable spending extravagant sums on durable products.
Pay-as-you-go is preferred While the pay-as-you-go model has been tried and tested with success in the tech industry, NielsenIQ BASES research suggests the model has the potential to be accepted by brands also in the durable consumer goods sector. With more and more consumers demanding flexible payment options and innovative yet cost-effective products, sustainable consumer brands in India have the opportunity to offer products that meet customer demand while having a unique payment model. .
NielsenIQ BASES is a leader in helping companies build brands through innovation, renovation, strategy and go-to-market optimization, and is a trusted partner globally and across industries . BASES helps maximize end-to-end brand success through advanced predictive analytics, behavioral science, proprietary databases, expert guidance, and an agile digital technology platform. This story is provided by NewsSee. ANI shall in no way be responsible for the content of this article. (ANI/NewsView)
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