In a world that now seems more about disruption than stability, it is always better to be the disruptor than the disrupted - and that means pushing horizons outwards. Strategy needs to be built as part of a wider consumer system rather than at product silo level. Consumer systems are about breaking down walls instead of building them, creating incremental profit opportunities, and preparing for disruptive threats that can come from any direction across the system.
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The creation of new value from smart technology inherently erodes “silo” mindsets, forcing brands to see beyond their immediate area of operation. Smart disruption forces brands to think about what value is accessible on the other side of a “wall”.
Consumer system frameworks matter because this helicopter perspective is how disruptors are seeing early opportunities for incremental gains, and how brands can predict the directions most credible threats can come from.
Replenishment agreements blend revenue streams, give substitutional value to one stakeholder at the cost of another, curated D2C (direct-to-consumer) can close off segments of FMCG. Systems support new ownership, circular economy and marketplace structures.
This is only partly about the incremental revenue and profit - there are other gains to be had. There are synergies in value creation, user relationships and retention metrics, and long-standing performance barriers have started to become solvable.
Leading disruptors are clearly heading towards system ownership as a goal; right now this is about partnerships and gaining wider coverage via collaboration, but an end point is closed systems limiting disruption opportunities in shopping journeys.
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