Peddling mass-market consumer brands was the norm for about a century where everyone wanted to associate with a few ‘right’ brands such as jeans from Gap or coffee from Starbucks. But now the change has reversed to increased personalization at scale. This is known as mass customization. Some companies leading this urge are the likes of Stitch Fix which is into personal styling and Space ways, which is a 3D printing service. The advantage that owning scale used to bring earlier is now being seen as a liability because it unnecessarily increases fixed costs. This is a reason for Gillette’s market share getting disrupted by the nimble-footed startup- the Dollar Shave Club. All this is now possible because of the enormous quantities of data warehousing now being done which gets further processes using AI capabilities. The specific data and user intelligence that emerges is then used by consumer-facing brands for their digital marketing efforts as they can now provide a more personalized service.

Source:https://www.strategy-business.com/blog/Bigger-Is-No-Longer-Better-When-It-Comes-to-Consumer-Brands?gko=0e1b7&sf196654240=1

Uploaded Date:15 September 2018