Consumers expect devices to be integrated with their smartphones and other connected to devices.
Products must deliver an entire product experience or risk being commoditized as an accessory. Consumers expect devices to be integrated with their smartphones and other connected to devices.
To be relevant to consumers, CE products need to deliver a physical experience as well as app and web experiences.
A product today is much more than the fungible object that you hold in your hands. It's also about an app, a back-end service, or an online community. Companies are attempting to combine physical products, services and apps together to provide a new whole experience to consumers. This approach of extending products also generates multiple points of revenue generation.
Traditional consumer retail channels are becoming less important.
Today, direct internet sales are an effective channel to launch products to market. With this change, the mass retail requirement of low-mix high volume becomes less critical. Innovation can be focused on smaller volumes and the associated lower working capital requirements and higher gross margins.
Mass customization is becoming cost effective.
Large companies have been building-to-order mass customized products – PC and laptops – for some time. These capabilities and solutions are becoming more cost effective. This allows companies to provide personalization and customization as part of the basic product, which, in turn, provide for a better out-of-box experience.
Consumer products have standardized around a one-year product upgrade cycle.
Most consumer electronics companies follow a yearly cycle. This means that each year a company must create a reason for consumers to buy the next-generation product during the next retail cycle or risk falling behind competitors. Product strategies must incorporate multiple years of feature planning to allow consistent delivery of product.
There is a continuing trend toward wireless, especially toward cell phone accessory devices.
The cell phone is now the hub of most accessory devices. It is the universal device which mediates wireless communication. It is a communication device, an entertainment center and more. For many consumer electronics companies the key question is how to shape the user experience centered around the mobile phone and how it captures and distributes information.