This video tells us how Amazon, Apple, Facebook, and Google have become so valuable and integral to our lives.
In a nutshell, their offerings get better every time someone uses them because they collect data that allows them to feed back into improving their offerings.
This is in stark contrast to a consumer product that offers no value after it comes off of the production line. There is no instantaneous feedback mechanism built in to let the manufacturer improve the next product that comes off the line. Further, most products are mass-produced, so consumers have to settle for what choices they are given.
But a way around this that I am attempting to do in my company is to create micro-production lines that can customize products based on what each consumer wants.
With advancements in technology that are giving us better software and hardware, the ability is upon us to decentralize product production that can cost-effectively produce custom or semi-customized products that are geographically closer to the consumer for faster turnaround and delivery.
If you want to start a consumer product company, don’t go the usual route, which is come up with a product, figure out how to mass produce and get volume for economies of scale. This is hard to do, expensive, extremely competitive, often unsuccessful and is the same old growth story.
Jump to the next curve by figuring out how to produce products that are customized to each customer. Build your company around that.