News & Commentary
Improving the Bottom Line
In the current economic climate there is predictably much focus on reducing cost. As a result of this, many small companies are actually booming as their lower overheads translate into lower prices, making them a more attractive proposition for newly cost conscious buyers.
Surviving the economic downturn
Consumers have pressed the pause button on spending – we know they will be pressing the resume button – we’re just not sure when. So it’s all about cash - some companies will need to hoard all they’ve got just to survive – others will be able to enjoy bargain prices. Redesigning older products can reduce cost of manufacture, often dramatically, while also adding value.
So which areas are recession proof?
- Major purchases are on hold but part of this spending has switched to smaller luxury items, some of which are actually booming. Value products have naturally also seen an uptake – it’s mid-range items that are being squeezed hardest.
- Burglaries are already on the rise so security products will recover well after an initial blip.
- Burgeoning legislation will keep health & safety equipment strong in most areas.
- Smaller purchases are likely to pick up first & expect consumers to be more value focused – price and quality.
- Green products should continue to grow as will those that save money in general.
- Products for the disabled will be another growth area with judges usually sympathetic to discrimination claims.
- Predictably there is a lot of interest in "me too" products at the moment.
Cheap Electronics Add Value to Almost Anything
Electronics has now become so cheap that it can be used to add value to almost anything - even grocery products – witness one air-freshener that swaps fragrances periodically & another equipped with a motion sensor!
On-Shore Design with Off-Shore Manufacture
If you manufacture off-shore then on-shore design is by no means a guarantee of product quality. Test houses report frequent instances where poor manufacture or invalid component substitution have rendered UK designed products either unsafe (e.g. insulation class, ESR or ripple current rating) or unreliable (e.g. insufficient operating lifespan and/or temperature rating). You might consider not letting your manufacturer use equivalents for safety critical components but if you do, always request & check the data sheets.
God is in the Details
So many Chinese products (some of them otherwise pretty good) are let down by poorly translated instructions, lopsidedly photocopied onto a sheet of A4. Putting this right costs nothing & requires little effort but avoids spoiling the image of the whole product.
More Than just Electronics in a Box
Manufacturers have long being trying to convince us that their products are more than just snazzy electronics in a slick box. It’s always been true for mobile phones but here the service providers & hardware manufacturers have traditionally been separate. Increasingly manufacturers are providing services tied into their hardware. Established examples include RIM (Blackberry emails) Apple (iPod & iTunes, iPhone & App Store), Sat Navs (map & traffic updates). Nokia now sees it Ovi services division as key to future growth.