Vijay Govindarajan, a professor at Dartmouth's Tuck School of Business and co-author of a key article on adaptive product design, discusses the shift from planned obsolescence to creating products that grow with consumers. He highlights the importance of innovation, using examples like expandable shoes and convertible bikes. The conversation touches on how businesses can benefit from sustainability and continuous customer feedback, delivering long-term value for both consumers and companies while fostering loyalty.
Companies are shifting from planned obsolescence to adaptable products, enhancing customer satisfaction and long-term loyalty through innovative design.
Products that evolve with consumer needs, like expandable shoes or smart devices, not only drive revenue but also promote sustainability and reduce waste.
Deep dives
The Shift from Planned Obsolescence to Product Adaptability
Companies are transitioning from a model of planned obsolescence, which encourages consumers to frequently replace products, to one that emphasizes adaptability and longevity. This shift allows products to evolve and meet changing consumer needs, ultimately enhancing customer satisfaction. An example includes a shoe company in India that produces expandable children's shoes, which grow with the child's feet, reducing the need to purchase multiple pairs. Such products not only add value for customers but also prompt companies to rethink their design and production strategies to facilitate sustainable practices.
Benefits for Companies and Environmental Impact
Focusing on adaptable products can create significant benefits for companies, including increased customer loyalty and improved sustainability. While companies historically profit from selling multiple items as part of planned obsolescence, adopting a model where a single product grows can lead to more significant long-term revenue. For instance, shoes that expand over time may command a higher price, yet they also reduce waste, appealing to environmentally-conscious consumers. Consequently, this approach not only addresses customer demands but also mitigates environmental impact, fostering a more responsible business model.
Innovative Examples of Products that Grow
Various examples illustrate the concept of products that grow, demonstrating diverse applications beyond technology. A notable case is a tennis racket equipped with sensors that learn a player's skills and offer tailored feedback, necessitating ongoing customer engagement for future improvements. Additionally, a company has developed a stent that expands with a child's growth, minimizing the need for repeated surgeries. These innovations underscore the potential for businesses to generate additional revenue streams through continuous customer interaction while maximizing the overall utility of their products.
Many companies make money by selling goods that need to be constantly replaced; think fast fashion, or tech devices that come out in new versions each year. But according to Vijay Govindarajan, professor at Dartmouth's Tuck School of Business, smart organizations are increasingly eschewing that strategy for one focused on products that grow with the consumer through creative design or software updates. He shares several examples and explains how this approach can deliver more value for the buyer – and for the business – over the long term. Govindarajan is the coauthor of the HBR article "Design Products That Won't Become Obsolete."
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