BASES, a NielsenIQ business, has released the findings of their latest study that highlights how open consumers are to new business models in the durables and electronics industry in India and other countries post the pandemic.With the objective to understand how durable goods manufacturers can keep consumers engaged and enhance their experience post the pandemic, NielsenIQ BASES finds among different business models, Product Service Systems (PSS) to be the future proof for consumer durable brands. The global study, conducted in US, Germany, Brazil and India, highlights that engaging the customer throughout the product’s lifecycle by adopting new business models will prove to be beneficial for brands. This issue brings to mind the question of what companies are in the consumer services field.“Extending the relationship between a company and its customer, beyond point of sale, opens up new opportunities for brands to interact with customers to understand customer demographics, gather important performance and usage feedback, and deepen the customer relationship by better responding to their needs,” said Vidya Sen, South Asia Lead, NielsenIQ BASES.In order to deliver personalized services for their customers, brands must look at options that are fulfilling a user’s needs. The study talks about two variations of product-service systems (PSS).
PRODUCT-ORIENTED
In India, the Covid-19 pandemic reinforced that consumer goods companies need to evolve how they engage with distributors, retailers, and end-consumers to drive growth and boost profits in the coming years. “In India, adding services, customization, automation, or leasing options provide manufacturers the opportunity to introduce more on-going revenue streams.
Product automation is universally appealing.
Product automation model ranked number one not only in India but also USA, Germany and Brazil.
While Pricing was important for consumers in USA, Germany and Brazil, product quality, support and aftersales service stood out as crucial factors for Indian consumers when it came to automated products.
The research finds that communities of like-minded consumers and professionals appeal to consumers equally.
For consumers this means buying durable products that are recyclable or made with recycled materials; keeping them in use for a long time through effective maintenance and repair, or ensuring responsible end-of-life actions so that little to no waste is generated. For businesses, this includes developing products and business models that eliminate waste by design, reducing the use of raw materials, and planning for return/recovery of products and packaging, among other actions.
In India, consumers see manufacturers of large durables, electronics and small kitchen appliances as a better fit for the circular economy. However, pricing remains a great concern for them as they are not comfortable spending an extravagant amount on sustainable products.
Pay per Use is PreferredWhile the Pay per Use model has been tried and tested successfully in the technology sector, NielsenIQ BASES research suggests that the model holds the potential to be accepted by brands in the consumer durables sector too.
With more and more consumers demanding flexible payment options and innovative yet cost-efficient products, the consumer durable brands in India have the opportunity to offer products that cater to the customer demand and at the same time have a unique payment model.
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