The growth of the global homecare products manufacturing sector, which is a part of the retail sector, is mainly driven by the rise in purchasing power of consumers, improvements in their disposable income, and a rising global population. A recent study on the retail sector indicates that the demand for home care products is expected to increase in the Asia Pacific region (APAC). This is mainly due to population explosion, changing lifestyles, and the demand for new homecare products. Moreover, factors such as rising end-user expenditure and the high sales growth percentage of consumer goods are expected to contribute the growth of the home care products market. Also, the increasing demand for eco-friendly products and the rapid rate of technological innovations are fueling the demand for home care products.
Let’s take a look at some of the critical factors curtailing the growth of the global home care products market:
- Innovations in product development: The world we live in is consumer-driven, and product development and innovations are moving at a lightning pace. Therefore, to stay relevant in the retail industry, home care products manufacturers have to keep up with the rapidly occurring changes. Since companies compete with each other to be the first to market a product with a new concept, the temptation to compromise on quality can be huge. However, manufacturers need to be stringent when it comes to adhering to regulations and avoid cutting corners.
- Time-to-market: To improve the time-to-market, companies manufacturing homecare products need to develop more structured approaches to manage innovation. However, devising and implementing strategies that keep a steady stream of new product innovations in the pipeline is essential for manufacturing success.
- Environmental concerns: Maintaining sustainability and adhering to environmental regulations can be expensive for manufacturing firms. This makes it a necessity for home care products manufacturers to be aware of these costs when outlining their quarterly budgets.
Some of the other challenges for the global home care products industry include resource constraints, economic recession, climate impacts, and political instability. The combined effect of these factors, which have already taken center stage in the global home care products industry is not easy to manage. Hence, maintaining the right balance between quality and price is the most prominent concern for players in this sector. As a player in the home care products manufacturing space, you may be well-informed about these challenges. To gain a competitive edge in this market space, it is best recommended to consider implementing competitive intelligence solutions as it will assist in defining your future growth opportunities.
The Business Challenge
The client– A prominent home care products manufacturer
Objective- To identify the growth opportunities in the home care products manufacturing space, based on a detailed analysis of the competitors and market developments.
The client, a reputed home care products manufacturing company with several manufacturing units spread across the globe, wanted to implement strategies that’ll help them in identifying the fluctuations in market situations. The client wanted to leverage the use of Infiniti’s competitive intelligence solution to better understand the intent and ability of their competitors. The client was also interested in determining the extent of the risks to which the enterprise may be exposed. Also, the client wanted a detailed report on the entry barriers, new opportunities, threats, and competition in the home care products market.
Results- Devised an effective strategy to help the client respond flexibly to varying demand fluctuations in the home care products market.
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The competitive intelligence experts at Infiniti carried out an extensive research comprising of interviews and discussions with leading stakeholders across the home care products market space to help the client improve business efficiency. The experts at Infiniti further compiled information from a wide array of secondary sources such as paid industry databases, company presentations, and industry forums to help the client understand the competitive scenario.
The Solution and the Business Impact
Infiniti’s competitive intelligence engagement helped the client in improving their decision-making process. Our solutions also enabled the client in understanding the market plans and behavior of their competitors to devise effective business strategies. This engagement also helped the client in responding flexibly to the constant fluctuations in the market. Moreover, the client was able to gather information about its competitors, including the information about new product launches, the competitor’s sales strategy, and their revenue. Such detailed information made it easier for the home care products manufacturer to capitalize on the strengths as well as weaknesses of their peers.
With the rapid changes in market dynamics and companies overseeing rapid changes in products and competitors, implementing competitive intelligence has become mandatory for companies across sectors. This can be attributed to globalization, the short span of the product lifecycle, and other such factors. Hence, generating competitive intelligence has become essential to gain a competitive edge in a highly sophisticated business space. Moreover, a well-designed competitive intelligence engagement can help businesses in the strategic planning process, as well as in determining of intent and ability of its competitors. Therefore, those who cautiously anticipate future challenges and opportunities to address them proactively, will be better positioned to succeed in this complex market space.