In the fast paced world of instant obsolsolescence and rapid innovation, time-to-market is becoming a key factor for success.
This is a video clip from a recent keynote that I gave for hundreds of executives from the grocery and consumer products industries, titled Faster is the New Fast: Innovating for the New, High Velocity Customer. I take a look at what innovative retail, packaging and consumer goods companies do differently.
This is the third retail presentation that I’ve done for a major retail conference this year; earlier, I spoke to several hundred convenience store owners and their franchisees; as well as to a group of executives involved in health care retail.
There are a few key themes that I wove through this keynote that retailers, consumer goods and packaging companies need to be thinking about, as well as their advertising agencies:
- velocity: i.e. collapsing product lifecycles
- instantaneity: faster trends; I have a wonderful story about dive-in movies, that I use to describe how the new global idea sharing machine results in faster product to market!
- spontaneity: social networking, rapid emergence of new “hits”; there’s a new suddenness with consumer choice!
- intensity: business operational excellence is critical; I have a story of a video game distributor — 45% to 60% of profit of a new video game occurs in the first FOUR TO FIVE days. I explained similar short, sharp shocks of revenue are coming to consumer goods
- unpredictability: sudden, rapid shift of consumer choice, with nicheing, impact of new packaging, etc.
- simplicity: the new consumer wants nice, simple solutions that fit into their life; there’s a great story here from the work I did with the American Nursery Landscape Assn, that spins directly into consumer products, beverages etc, in that simplicity is the new branding.
- volatility: great unknowns; water on planes, melamine/pet food; we have to be prepared for unforeseen risks!
- attractability: there’s another video that I’ll post soon that involves a story of the plasma people and the cardboard people. suffice it to say, the new consumer will be more highly interactive, sooner than we think
- unfocusability: short attention spans, consumers scan 50 feet of shelf space per second; we’re seeing collapsing newspaper/magazine spend, rapid growth of online spend, etc.
- virtuality: Screen Digest, a media consultancy firm, predicts that 80% of active Internet users will become involved in a virtual world by 2012.