Driven by ongoing disruptions in the global supply chain, brands and retailers are bringing manufacturing and design processes closer to the consumer - both physically and digitally. To better meet consumer needs, companies are utilizing new types of data to inform front-end R&D as well as operational decision making. They’re leveraging creative AI applications to streamline product concepting and design phases and using 3D printing techniques to build a more efficient on-demand manufacturing model, effectively moving away from mass to bespoke. What’s more, production lines are being reconfigured into smaller footprints, allowing factories to be located closer to the communities they serve. Taken together, these innovations help identify unmet needs in the marketplace, enable enhanced customization at scale, and bring products closer to their end consumers. These new manufacturing techniques save transaction costs, give companies more oversight on production, and power more ethical and sustainable supply chains. 

At the same time, companies face increased competition for consumer loyalty, which has led them to consider how they can offer consumers a more personalized product experience. As a result, brands are embracing more agile processes across product development and production. Digital tools like AI, AR, and 3D printing can bring consumers into the production process as collaborators, which in turn creates new opportunities to gather insights, feedback and data in real-time, closing the loop between needs and finished products. By giving consumers greater control and confidence over their purchase decisions, companies can not only drive repeat sales but reduce operational and environmental costs associated with unsold merchandise and returns.

To support companies as they consider new processes and initiatives to meet emerging consumer needs, the PSFK research team has identified the 5 key strategies shaping future product design and manufacturing. Developed through the lens of technological advancements, digital behaviors, and sustainable business models, these trends highlight the innovative ways organizations are reimagining not only product design, but the final consumer experience as well.

Consumers are demanding that manufacturers take environmental measures such as sustainably sourcing components and ingredients or employing a production process that reduces waste. In fact, 3 in every 5 US shoppers say they are influenced to buy products from companies with responsible manufacturing.

While many people find what they're looking for when shopping, there's a significant portion who need help finding products that are physically right for them. Over 45% of US shoppers say they seldom or never typically find the perfect size, shape or fit.

In addition, while shoppers are interested in bespoke products made on-demand, there's a limit to the amount of personal information they are willing to share today. 57% of US shoppers say they would only share a little or moderate amount of data to brands and retailers in order to be offered products that are the right size & shape. 14% of shoppers say they don't want to share any data at all.

While many US shoppers are happy to have their goods made anywhere in North America (31%) (or even the world (15%)), a high proportion are looking for locally made products. 48% of US shoppers would prefer to buy from companies that make their products within 100 miles of where they live.

Also, as eCommerce grows, the environmental impact of deliveries increases too. 43% of US shoppers are concerned or very concerned about the environmental impact made by the shipping and deliveries of their online shopping. Only 7% say they are not concerned at all.

#manufacturing

The 3D-printing pioneer has created an innovative, purpose-built, on-demand supply chain that makes 3D printed mass-production accessible, affordable, and impactful.  

Custom clothing company Knot Standard’s AI-powered, on-demand platform is revolutionizing traditional retail. 

Amazon’s Product Opportunity Explorer is a next-generation feature for ecommerce sellers that helps them better understand and respond in real-time to customer demand for new product ideas. 

Complex Networks, the American media and entertainment company owned by BuzzFeed Inc., is tapping its unique audience as a focus group for brands. 

Serial entrepreneur Gary Vaynerchuk is launching New York’s first NFT-based membership restaurant.

The ecommerce giant is leveraging economies of scale through its loyalty program. 

Looking across products, services and experiences, consumer choice and access is constantly reaching a new pinnacle, creating an omniplatform and omnibrand shopper mindset. Across today’s expansive digital landscape, conversations around community–not just membership but active participation on behalf of consumers–is one strategy organizations are exploring as a means to not only stand out but earn long-term affinity. To build the type of community that goes beyond points systems and one-off discounted purchases, businesses are testing ideas around how to better involve consumers in the decision making process, provide more dynamic rewards and create a more equitable value exchange between consumer and retailer. 

To activate their communities, organizations are involving them from the ground up, treating fan-based chat groups and forums as sounding boards for product development and spaces to discover new opportunities to act on. Further, with the proliferation of DAOs and community-owned organizations, consumers are recognizing the power of community stakeholders, and the access those memberships provide in terms of perks, profit and decision making opportunities. Meanwhile, cryptocurrencies, digital wallets and more defined use cases for NFTs have inspired organizations to explore the idea of ownership as access and how that can elevate their loyalty program by attaching exclusive perks, amplified services and limited edition experiences around a token-based buy-in model. Looking ahead, as brands, event planners, performers and creators look to generate ongoing excitement and build on long-term relationships, there is also an opportunity to explore the idea of digital souvenirs, connecting one-time events, product drops, or membership sign-ups to the promise of future experiences and exclusive access. 

In this research report, the PSFK iQ research team explores the strategies that retailers, brands and organizations can apply to meet their members with added value, activate their communities, and ultimately drive ongoing business success.

62%  of US shoppers belong to at least four loyalty programs, suggesting there is strong interest in the space.

When asked to select typical features of the loyalty programs they belong to, 85% cited discounts and the ability to earn points. Meanwhile only 32% said early access to limited-edition goods, 22% receive personalized services or experiences, and 15% earn recognition/status within that retailer/brand community, pointing to an opportunity for retailers/brands to do more with their program offerings. 

 

The majority of US shoppers (74%) agree or strongly agree that retailers should customize their loyalty program to reflect them as an individual.

The majority of US shoppers (71%) agree or strongly agree they should be rewarded for activities beyond making purchases such as sharing feedback or product reviews.

 

59% of US shoppers want to be able to influence the business strategies of the brands whose loyalty programs they belong to.

Applications of classic vending and self-serve solutions are being updated with digital technology and connectivity to help brands and retailers create automated customer experiences that enhance convenience, boost personalization and drive operational efficiencies. By outfitting displays, kiosks, and even entire stores with a mixture of AI, computer vision, mobile interactivity and robotics features, retailers are empowering consumers to take greater control of their shopping experience. At the same time, these solutions provide ready access to product information, recommended selections and frictionless that prioritize ease and safety. From a brand and retailer perspective, automated systems, smart vending machines, and robotic solutions are providing opportunities to not only excite consumers and connect with them in new ways, but meet consumers where they are, whether that’s in-store, within their local neighborhoods or even their own doorsteps.

Across the marketplace, innovative retailers are leveraging autonomous technology coupled with AI and machine learning to streamline their operations while increasing fulfillment speeds and simultaneously reduce costs.. Robotization and unmanned stores have become spectacles in themselves, giving consumers new reasons to visit . Paradoxically, reassigning time-consuming tasks to a robot is enabling store associates to deliver more customer-facing value.

In this research paper, the PSFK iQ research team explores the self-service tools, technologies, and applications brands and retailers are launching in order to integrate convenience and drive sales around a wide variety of products and services. Learn about the pre-, during, and post-purchase solutions that offer consumers an entirely contactless journey. From featured strategies and highlighted examples, discover an approach to service that utilizes technology, robotics, and automation in order to drive maximum personalization and convenience.

When asked if they found store experiences fresh and innovative, 71% of US shoppers said moderately, a little or not at all.

When asked about in-store technologies they think would improve the shopping experience, US shoppers prize most highly familiar technologies such as self-checkouts (47%), lockers (31%) and interactive kiosks (28%). Less than 25% of shoppers say today that robots and other robotic systems would add to the experience. 

When asked if they prefer to engage with store associates or store technology, 40% of US shoppers prefer store associates and only 16% prefer only dealing with technology. 32% of shoppers don’t mind either.

“People’s needs and expectations from brands are changing at a rapid pace. As marketers and innovators, it’s crucial that we respond to these demands. We must become more consumer centric and operator empathetic than ever before, and PepsiCo Foodservice is leading the way. Our team is leveraging cutting edge technology and testing new digital innovations that address labor shortages, on-premise safety, sustainability and more.”

While over 68% of US shoppers think that most or all stores are easily accessible for them, 31% of shoppers say some to few stores are easily accessible to them - hinting that a segment needs better access to retail experiences like vending.

The Chinese retail giant has landed in Europe, with two next-gen robotic stores launched in the Netherlands under a new brand name, Ochama.