Because companies can no longer rely solely on empirical data.
“When people opened their doors, they saw that the kingdom had changed.” Jason Hook, author of “Castle Barmy”
In March 2020, consumer behavior changed dramatically as a result of the pandemic and the containment measures that accompanied it. In particular, the demand for products focused on home comfort has exploded. While pandemic-related trends are fading, the shift to virtual engagement has been resolutely welcomed. “Alone together” – physically disconnected but socially mobile – is not only the new normal, but also an option that also costs much less than meeting at the coffee shop. Socializing online via gaming activity in the metaverse is therefore expected to continue to develop, leading to revenue growth for the most successful companies in the industry such as Epic Games.
Today’s consumer is free from conventions; With behavior constantly changing at an unprecedented rate, the consumer goods industry can no longer rely solely on empirical data to identify opportunities. Businesses must adapt to offer a new range of convenient options, experiences and services if they are not to fail.
Thus, while consumer technology previously referred to software, hardware or online offerings, in the future it will be more related to the need to leverage data in building business models and identifying target customer groups.
According to a recent article by Andreessen Horowitz, the largest company in the world could one day become a health technology company. The authors indicate that the US healthcare sector is worth $4 trillion (and growing); faced with this gigantic potential, heavyweights like Google, Apple, Facebook and Amazon all want to capture a slice of this market.
Last fall, we identified Alto Pharmacy as an industry disruptor and potential beneficiary — this company was launched in 2015 by two MIT grads and former Facebook engineers. Its founders made the following observation: given the fragmentation of the American healthcare sector, the market lacked a customer-centric global provider capable of reconciling the interests of provider, payer and consumer.
They therefore set out to create a technology platform that automates all back-end activities and streamlines processes for all stakeholders. The result is the only “next generation” pharmaceutical technology infrastructure with internal systems that facilitate prescription processing, from doctor’s office to drug delivery.
Having firmly established itself in its initial target market, Alto is now looking to capture larger segments in order to strengthen its growth potential by significantly increasing the size of its total addressable market (TAM).
High: Huge potential for TAM expansion
Going forward, the main challenges and opportunities for the consumer goods industry will be reconciling data from the digital and physical worlds, addressing incomplete or inaccurate customer data, and leveraging digital intelligence resources by leveraging artificial intelligence (AI) and machine learning (AA) to create truly effective business models. Addressing these challenges will enable companies to act on their data across channels, measure outcomes, and enjoy exponential growth in profit margins.