MARKETING CHANNELS ARE SET FOR A REJIG AS A NEW BOY ENTERS THE TOWN: CONSUMER TO MANUFACTURER.
The past few decades have really rechristened the shopping experience. e-commerce has truly globalized the "shopping mall" for any potential buyer who has steady access to the internet. The focus on the consumer has been a topic of great in-depth discussion. Thousands of articles have been written on how shopping has truly evolved the demand side. However, the average Joe seems to be unaware about the seismic changes behind the scenes: from the supply point of view. Pivotal events (in no particular order) like the emergence of the D2C route, electrification of logistics, 3D printing of certain products, automation in warehousing, entry of big data analytics in demand prediction and blockchain in tracking will redefine the way suppliers transact and manufacture.
The topic in the spotlight for the day would be a new model: Consumer to Manufacturer hereby referred to as C2M. What's really interesting about this new development is that it gives consumers the power to not only dictate demand but also the supply! That's because goods would be manufactured only on-demand basis. The focus would be on personalization & customization which would be dictated by the whim of the consumer. Of course, the customization would be limited to a few tweaks of colour, shape or size depending on the product. The trick would be in making the consumer feel he/she has an actual major choice! Companies can have the advantage by properly utilizing emerging trends just mentioned at the end of the first paragraph.
As goods produced would be ready to be shipped, there would be no need of maintaining inventory. This is where D2C & C2M differ from one another. There would also be a similar removal of various middlemen & intermediaries who inflate the profit without adding real value to the final product. One major limitation of this model would be it only works on products that offer a hint of customization like furniture, jewellery, footwear & apparel.
Nonetheless, it Is a chance for smart manufacturers to provide ultra quality products at ultra-low prices as per the preference of the consumer. China, the manufacturing powerhouse of the world, has already adopted this model to a certain effect for its domestic market. Companies specializing in export products tapped in the domestic market during the pandemic & catered to their diverse set of demands by aligning their manufacturing prowess to the full throttle.