Building a Data-Driven Product Development Model

Gartner 08 Mar 2021 06:17

How to fully maximize the potential of data continues to be a priority for marketers and business leaders. Data-driven product development, particularly in the consumer goods sector, is one of the key digital innovation trends emerging from China (see The Future of Retail: What Western Brands Can Learn From China). 

From B2C to C2M

Traditionally, B2C brands manufacture products based on trend analysis and hypothetical consumer demands. They then rely on marketing to educate consumers and distribution to generate sales. However, the C2M model, heavily promoted by digital giants such as Alibaba, offers a consumer-centric approach to product development. In the new model, brands mine consumer data to identify demands. They then conduct trials and utilize data to optimize product design and marketing strategy. 

A new manufacturing model that represents “Making to Sell” instead of “Making to Stock” The model is partially inspired by how technology companies develop products with demos and trials while incorporating real-time data analytics into product optimization. In China, smart CPG brands have innovated product development in a similar spirit, following multiple steps driven by data:

Case Study: Genki Forest

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ChinaGenki ForestAlibaba
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