Startups are increasingly using digital methods to identify unhappy customers and consumer needs, and leverage digital technologies, such as data analytics, to fill the gap, according to a survey by global assurance and advisory services firm Ernst and Young (EY).
The report, Incumbents to Disruptors: Adopting the Start-up Culture for Innovation, surveyed close to 100 consumers across cities, age groups and income brackets. Some consumer startups and large consumer product companies were also interviewed.
The survey showed that for 60% of consumers across age groups, social media was an important influencing factor to try a new brand. As much as 75% of the respondents said they would choose a new brand if they thought it was better for them, such as not having harmful ingredients or being more effective or healthier, than their current brand.
As per the report, 80% of the respondents said they would pay upto 25% more money if the product gave them the desired results. In fact, it was the second-most important reason for consumers to try a new brand.
“Today, startups are giving tough competition to the large consumer product companies. Thus, it becomes important for the incumbents to set an agenda for identifying evolving customer needs with speed and provide products and solutions to meet them,” Pinakiranjan Mishra, partner and national leader of consumer products and retail at EY India, said.
He added that companies must rewire how they operate and adopt speed over perfection.
“With the advent of emerging technologies, which are disrupting the consumer products marketplace, large companies must make fundamental changes in their company’s operating model and inculcate the agile startup culture,” he said.
Another study from EY, in fact, said that only 23% of manufacturing firms in India have a clear digital strategy.
“The adoption of digital technologies in India is still in its infancy, considering that manufacturers have started using these technological advancements recently and with limited scope,” Ashish Nanda, EY India’s supply chain leader, had said.