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Why You Should Do An Industry Research

Why Industry Research Matters?

Many times, promoters of new ventures ignore the trends that are happening in the industry on a global and national scale. They fall so much in love with their business idea, that they get short-sighted and see only the opportunity at hand. This can lead to very sad consequences. Imagine spending millions on a venture that gets disrupted by new technology or a shift in customer preference, and the venture goes out of business. If only the promoter had the common sense, to look up to the industry and see a Tsunami coming, he could have spent that millions of investment, his time, and effort on something that had a better prospect. 

This is applicable to those managing businesses at the moment. Before embarking on major re-investments or expansions, you need to study the future of your industry. If it has disruptions coming up, better shift that investment and effort, to something that has better prospects.

Doing research on your industry is not all about preventing a disaster from happening. It can also be a good means to identify new opportunities.

5 Reasons Why You Should Do An Industry Research

Industry research helps in changing ahead of your competitors.

It is common sense that you need to do things your competitors are not doing to stay ahead of them. Sometimes, these new measures or initiatives may not be things that can be done the next day. Especially if it involves substantial investment into say production, infrastructure or new training and grooming of staff etc.
So if your business is able to find a new disruption on the horizon, and you take the time in advance to invest and be prepared for it. Then when it happens, your business will be ready for it, while your competitors will need months to be in your position. By this time, you can capture their market share.
When consulting new ventures, we at AASC, ensure we do Industry trend studies in our Market Feasibility Studies, to ensure that such opportunities are not missed. Also when providing management consulting services to existing businesses, we do a process called Market Audit, where apart from studying the market, competitors and the customers of the client, we also study the developments in the industry to provide apt advice for the present and future.

Industry research helps in becoming a market leader

To know where the market leads and by acting on the clue, means naturally becoming the pioneer and the market leader. 

Industry research helps in better branding

Becoming a market leader, a pioneer or a thought leader creates a strong brand image among the target customer segments. It also makes the competitors identify your business as an industry leader.

Industry research helps in better understanding customers

Industry trends are usually triggered by customer changes or technological changes. Or industry changes triggered by customer preference changes, triggered by technological changes. Understanding these changes in customer segments or preference, helps in better communication, promotion, advertising, implementing internal changes and host of other important preparations. 

AASC assists businesses in these changes by studying these trends, and analysing its impact on the business and making strategic and tactical recommendations. And assisting your business to implement and manage the implementation of the recommendations.

Industry research helps in the diversification 

Industry research reveals the possible changes that can result from factors affecting the industry from technology, politics, climate, laws and customer preference changes. Every change is an opportunity. It’s about a river changing its course, not drying up. So knowing the industry trends means identifying new opportunities and diversifying into those areas. In certain cases, such opportunities can be beyond the capacity of your business (technological, knowhow, resource or capital constraints). In such cases, the diversification can be to a totally different industry. 

AASC is a Business Strategy & Management Consulting firm that serves Promoters to study, plan and set up new ventures, and Entrepreneurs to manage or grow their business, in a professional manner. 

To know more about AASC services for new ventures, please visit https://aascglobal.com/consulting-for-new-ventures-and-startups/

To know more about AASC services for businesses, please visit https://aascglobal.com/consulting-for-business-growth-and-expansion/

Call: +91-7558-900-800 or email info@aascglobal.com

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Introduction: AASC Covid Economic Study

Covid Economic Impact on Kerala Entrepreneurs Decisions

Introduction

Background:

The world economy changed so fast within the last few months, with the advent of the Covid virus in Wuhan, China. What started as a virus crisis in the Hubei province of China, quickly became a global problem. Thousands died and millions got infected. And the virus is still at large.

The affected countries are in lockdown, shops and factories are closed, people are prevented from hitting the streets, the medical facilities are overloaded, the governments are on alert, and people are staying back at home with fear. And this has created a severe dent in the way our economy was functioning. 

Coming to Kerala, the situation is no different. But the state is faring much better than the rest of India, due to timely intervention by the Government and the support of the people. 

But what happens to the businesses in Kerala, once the lockdowns are withdrawn. Will the businesses operate the same way they did? How much loss will businesses incur and how many will close down? Will it create severe job losses- which again will have a spiral effect on our economy? Or will some businesses seize the opportunity, reinvent themselves and win over others? 

Apart from these questions, every entrepreneur is haunted by the unknown fate- where will his business be post-covid? Among losers or winners.

As the entrepreneurs of Kerala (most of whom are MSME owners, and the major provider of employment in the state), stay at their homes and contemplate on the next move post covid lockdown, what they think about the lockdown duration, its impact on their customers and business will be decisive. 

If their understanding of the crisis is consistent with the reality to come, they can take steps that will help them survive the crisis or perhaps even grow extraordinarily. But if on the contrary, if their expectation is not consistent with what is going to happen, then they might take steps post void, that will prove to be fatal.

It’s a walk on the ice. 

To read the report, please visit https://aascglobal.com/covid-economic-impact-on-kerala-businesses/

About the Study

It is this issue that AASC intends to address with a study backed by a professional survey and analysis. 

As lockdowns were announced, the social media was flooded with experts and non-experts opinions about the crisis and how to handle it. It came in the form of webinars, articles and posts. At AASC, we decided to take a different track from the rest. 

AASC has good expertise in conducting surveys and analyzing the data to derive quality insights for our clients. AASC also has a good ecosystem of entrepreneurs who are available to provide quality insights about “what they actually think about the lockdown, its impact”. This ecosystem consists of its clients, prospects, well-wishers, social media followers, and groups in which it is active. 

At AASC, we decided to conduct a survey on 100 entrepreneurs from various industries, from various districts of Kerala; and identify with “numbers” and get the general assumptions “quantified”. So that our findings are backed by “numbers”. 

The survey was a success, and instead of 100, we surveyed 155 entrepreneurs! We thank all those who participated in the survey.

About the Survey

  • 155 entrepreneurs participated in the survey
  • 18 number of industries were represented, from across Kerala

Details of the survey samples is represented below

About AASC

AASC is Kerala’s professional business strategy advisory and management consulting firm, handling clients and engagements across South India and Gulf Countries. 

Feasibility Study & Strategy Plans For Your New Business Idea?

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Republishing Or Quoting This Report

AASC allows readers to share the contents of this report, subject to citing the source as www.aascglobal.com or the url of the page. 

Industries covered in AASC survey in Kerala

To read the report, please visit https://aascglobal.com/covid-economic-impact-on-kerala-businesses/

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Business Opportunity: Leisure and Entertainment Ventures

• India is emerging as a big market for the family entertainment and amusement sector. The demand for commercial recreation parks that provide families the opportunity to recreate in a clean, wholesome, and non-threatening environment is strong and growing.

• Entertainment and Amusement sector in India is expected to grow many folds in terms of both the number of parks and total investment. The number of entertainment & Amusement parks in India is growing at a fast pace and a large number of new parks in this category are expected to be built all over India in near future. Many Foreign companies have also reportedly taken interest in the Indian amusement parks market

• Family Entertainment Center (FEC) is also one of the fastest-growing segments of the recreation industry today. The FEC consists of leisure centers that range from S.F indoor children’s play centers to outdoor Fun centers, large category indoor family entertainment centers to multi-acre outdoor mega-centers, and encompasses centers that target families with children, teenagers, adults, etc. This sector has a very good future in the coming years

If you wish to explore the possibilities in this industry, it’s best to engage professionals to do the required studies and assess the viability of the project.

AASC provides Feasibility Studies, Detailed Project Reports & Turnkey Implementation services along with a host of other services to get the business started and run profitably.

To know more call +91 7559-900-800 or visit www.aascglobal.com

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Business Opportunity: Ceramic and Allied Ventures

Ceramic products are manufactured both in the large and small-scale sector with wide variation in type, size, quality and standard.

India ranks 5th in the world in terms of production of ceramic tiles.

The ceramics industry in India came into existence about a century ago and has matured over time to form a industrial base. From traditional pottery making, the industry has evolved to find its place.

Ceramic products are divided into four sectors which includes Structural, including bricks, pipes, floor and roof tiles; Refractories, such as kiln linings, gas fire radiants, steel and glass making crucibles ; Whitewares, including tableware, wall tiles, pottery products, and sanitary ware ; Technical ceramics which classified into three distinct material categories of oxides, non-oxides and composite. The ceramic tiles are available in at least three variations. They are floor tiles, wall tiles and vitrified tiles.

A large and growing middle class population of more than 300 million people, a changing life style, better cost of living are the growth drivers for this sector

AASC provides Feasibility Studies, Detailed Project Reports & Turnkey Implementation services along with a host of other services to get the business started and run profitably.

To know more call +91 7559-900-800 or visit www.aascglobal.com

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Business Opportunity: Health,Physical Fitness and Allied Ventures

The number of upscale fitness centrists growing at a pace similar to the rapid rise in disposable income among consumers between the ages of 20 to 45 years old.At the end of FY 2018, revenues in the Indian fitness market amounted to USD 908 million. Further growth in the segment, expected at a CAGR of 9.3% between 2018 and 2022, is expected to take the total market value to a whopping USD 1,296 million in 2022. Greater demand among consumers for home gym equipment and services being sold through online portals and mobile apps, along with the ability to access gym trainers, fitness experts, and nutritionists.

If you wish to explore the possibilities in this industry, it’s best to engage professionals to do the required studies and assess the viability of the project.

AASC provides Feasibility Studies, Detailed Project Reports & Turnkey Implementation services along with a host of other services to get the business started and run profitably. 

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Business Opportunity: Construction and Allied Ventures

Industry reports forecast that the bourgeoning Indian construction/building material industry is expected to record a CAGR of 15.7% y-o-y to reach US$ 738.5 billion by 2022. The key areas of expected growth are social infrastructure, educational institutions, hospitals, government accommodation, defense infrastructure, and water resources. India’s construction chemicals market is segmented as the infrastructure sector and residential & commercial sector. The infrastructure sector is likely to grow at a CAGR of 18.3%. The residential and commercial segment has a share of 34% in the overall Indian construction chemical market with a steady Y-o-Y growth of 16% in 2020.The infrastructure sector is expected to contribute 15% to the Indian economy by 2030 thereby navigating India to possibly become the 3rd largest construction market globally in the coming years.

AASC provides Feasibility Studies, Detailed Project Reports & Turnkey Implementation services along with a host of other services to get the business started and run profitably. 

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Business Opportunity: Leather and Allied Ventures

The growth in demand for leather is driven by the fashion industry, especially footwear. 

• Furniture and interior design industries, as well as the automotive industry also demand leather. The Indian leather industry accounts for around 12.93 per cent of the world’s leather production of hides/skins.

• Total leather good exports from India stood at US$ 3.05 billion during April-October 2018.

• During April-October 2018, the major markets for Indian leather products were US (16.73 per cent), Germany (12.31 per cent), UK (11.41 per cent), Italy (7.48 per cent), and France (5.54 per cent].

• During April-October 2018, exported products include leather footwear component (US$ 196 million), leather garments (US$ 295.06 million), finished leather exports (US$ 466.76 million), leather footwear (US$ 1,293.20 million) and leather goods (US$ 799.47 million).

If you wish to explore the possibilities in this industry, it’s best to engage professionals to do the required studies and assess the viability of the project.

AASC provides Feasibility Studies, Detailed Project Reports & Turnkey Implementation services along with a host of other services to get the business started and run profitably.

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Transforming Outdated Schools

“We Have To Teach Our Kids Something Unique…” Jack Ma, Former Executive Chairman of Alibaba Group

This quote is the trigger for today’s post.

As the world progresses by leaps into work getting done more cheaper, faster, and efficient- human jobs are at stake. It’s a reality. It’s time for humans, societies, cultures, and organizations to evolve to survive.

It begins with what we teach our kids. Our schooling system is so outdated, one wonders who prepares its syllabuses.

School management and parents have to move from the comfort zone of standardized learning to the new age of individualized learning.

So how do we teach our kids, what machines can’t do? We teach them to be “more human”. But what does that mean?

We teach them values, so that they never create or use machines, Ai and robotics to destroy peace, instead use them to create a sustainable peaceful world.

We teach them independent thinking so that they become creative in innovations, discoveries and become masters of the very technology that can otherwise be used to enslave them. Present schooling does not promote independent thinking- it’s only what’s in the textbooks.

We teach them cooperation and teamwork so that they love and believe in each other. Help and support each other. Remove the present mark-based mindset, where one has to beat down the other to get to the next level or is measured in comparison to others. Where a lion is compared to a dolphin, while their skills are different.

We teach them leadership and the ability to take responsibility. Characters that are fast disappearing in the pleasure-seeking, me-me, materialistic generation. Students should be not just taught but trained, to take up responsibility, be accountable, be able to motivate others, take the lead, walk the talk. Be men and women of their words.

We teach them to care for others. That care is what is going to help the world and inhabitants, be at peace with each other.

We teach them the knowledge that is needed for life rather than in-depth science, physics, maths, and geography that is not needed for the vast majority who might not seek those streams. Instead, teach them young, topics such as basic finance & investment management(everyone needs it in life to manage personal finances, personal investments), economics (everyone needs to know how the economy functions), basic law (everybody is bound by it), political science (that’s what governs them). These are more important topics as they affect everyone. Only those seeking careers in biology, physics, mathematics, geography, and other conventional topics need to go in-depth to them. For these special clubs in schools can be formed. So interested students can go much deeper than their peers, based on their capacity. For the rest who are not seeking such careers, they don’t need to be tortured to study them.

We teach them how to be healthy and avoid lifestyle diseases. It is funny that we don’t teach our kids what to eat and what not to. It shortens their life. That’s not in the syllabus. We should have in curriculum topics such as food habits, what to eat and what not to, sleeping habits, exercising, natural herbs, organic home farming, natural therapies, first aid procedures. This not only makes them capable of making and eating right, doing right exercises, curing themselves with natural herbs (avoiding side effect medication), and being capable of rescuing life’s in danger; but also have a profound effect on the businesses around them. Junk foods providers will disappear, harmful nightlife businesses will disappear, the illegal drugs/ prostitution industry will disappear, the healthcare industry will be more ethical and responsible. These changes will not be driven not by law, but by enlightened people.

We teach them the value of family and relationships. It’s a topic that should not get restricted to a chapter. It should be a subject that will be studied from kindergarten to post-graduation. Because relationships are the foundation of human civilization. We should teach kids how to understand their parents, grandparents, siblings, relatives, and neighbors & how to behave with them in various situations. Kids today, do not really know it. We should teach how husband and wife should understand each other and behave with each other (it’s not something that can be achieved with a few hours of pre-marriage counseling). This reduces divorces, broken homes, domestic violence, wrong relationships, etc.

We should teach how parents understand and behave with their children. This opens up strong bonding. This prevents kids from drugs, depressions, suicidal tendencies. All these need to be learned when they are in their schools and colleges.

We should teach them about all religions in-depth. This helps understand every religion better and have a deep-rooted understanding that ultimately all religions are about peaceful co-existence and it’s evil people who divide people on religions.

We should teach them empathy and sympathy. It goes a long way.

Visualize a world where this is what people learn and do. Feel the peace and happiness. This is what we need to teach. The present syllabus has failed to create a good world. We witnessed all the world wars, civil wars, unethical corporations, corruption, exploitation- all by people who spend most of their childhood learning stuff that never was useful in their real life and decisions they took.

In these schools, it will be less of books and theory. More of exploration, activity, and doing. And the traditional marking and grading system? It will be in the dustbin- where it rightly belongs.

This should be the vision and strategy for schools, educational institutions, education boards/organizations, and education ministries.

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Real Estate: A “Barcelona” Model for Kerala Real Estate?

World Economic Forum recently published an article about how Barcelona (a Spanish City) has solved the problem of air pollution (which killed approximately 667 people every year), by daring to test a new city plan.

The model they used is not only successful. But it made the city more enjoyable, stress-free, safe, and relaxing.

The best part, we can also do it in our State, District, or City.

This article explores how our real estate developers and Govt officials in City Planning can do to make our cities “more healthy and enjoyable”. It’s an opportunity we should not miss.

So what did Barcelona do?

It created “Superblocks” within its city. Superblocks are small clusters of inner-city streets, measuring approximately 400×400 meters which form mini neighborhoods. These neighborhoods are closed to vehicles and ground-level parking. Meaning no pollution for vehicle emissions, vehicle noise, risk of passing vehicles, heat from vehicles, etc. Barcelona is planning 503 such blocks!

As a result, it became open spaces for people to walk, sit and interact with other people. They became spaces for culture, leisure, and community.

The traffic is routed around the superblocks, not through them. Creating all the positive differences.

So what can our Developers do in Kerala?

Instead of focusing on small buildings and single units, focus on building township blocks like the Barcelona Model.

This requires land in a square or rectangular shape to be more effective. And small land patches are not enough. If acquiring land is the problem, try creating a company and including nearby landowners as partners (and give them a profitable opportunity). Use the land to master plan and build such blocks.

This is a strategy that can be used even in cities. In most cities, there are clusters of old small buildings that are of no real value to their owners as rents are low or volume is less. Such building owners can be taken into confidence, create a single company and build a cluster there.

The open area created can be a park or an open space with plenty of trees and greenery. Such properties will attract significant “footfalls” and be good retail, entertainment, office, and residence destination. Resulting in a better return on investment.

Developers can attract customers to buy these properties by showcasing how tenants will be interested to do business, work, and live in such blocks.

If more blocks come up nearby, it gives a cozy feeling to that locality, resulting in tourist flows. Which means more business, more profits, and more value to properties.

A similar scheme is planned in Seattle (US).

If the Superblocks are built at one-floor height or start from the first floor onwards. Then the whole ground floor can be used for parking, with the capacity to house hundreds or thousands of cars. Resolving to park also results in lowering the traffic jams in cities. Lack of parking is a perennial headache to Government. This can be a great solution for it.

If Superblocks are developed next to each other, and the community life starts at the first floor (with the ground floor for parking and roads), then bridges from one Superblock to another helps in people avoiding crossing roads and cycling becomes practical. Reducing accidents and injuries and deaths thereby.

So Builders, Developers, and Government- how about building Superblocks as Kerala’s Future Model? If Yes, should Govt stop all simple constructions and motivate people to join together to form such clusters?

Share your ideas, views, and comments. Thanks.

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Next Retail Disruption: Brands Will Facilitate Sale of Used Products & Renting Them

We are all familiar with people buying second-hand cars, mobiles, books, etc. usually these are sold by third parties – not the companies themselves.

A major shopping and lifestyle cultural shift will happen. It can disrupt the way we shop.

Possibly this could be the next major disruption after online shopping came into existence.

So What Is Driving This Disruption?

New business models are disrupting the old models, as the customer preferences are changing. Generation Z and Millennials, who are inclined towards sustainability, experiencing life, and less inclined towards amassing assets, are embracing the idea of buying quality used products and selling them back (when not needed, instead of keeping them forever) or renting used products.

The success of Uber, Airbnb, Patagonia, and many others are good examples. This trend is soon to catch up, in all other industries, including furniture and even cloths & accessories. Buying used products or renting dresses etc are not seen with interest by customers who are Gen X or those earlier. But with Gen Z and Millennials (the growing customer segment) are very much open to using rented or used products. This is going to be a cultural shift in the shopping.

But the disruption is when, the brands themselves buy their unused products from customers and resell them in the market as seconds or on rent, by ensuring quality and certifying it. This is the major disruption to happen across the industry.

A McKinsey report states that the best data out there shows that 33% of the Gen Z and Millennials did some type of resale purchase or rental in 12 months. Now that’s a huge business opportunity.

Participation in that market is growing by 40% year over year. That’s fast growth.

But will brands offer to take back their products and reselling them, affect the sales of their new products (cannibalization, as it’s called) or affect cashflows as they buyback?

Not necessarily, if properly planned.

Companies need not buyback. Instead, they can offer gift coupons in return. This means the customer will use the coupon to buy something new as well. This is a win-win for both the buyer and the seller. Besides, it is a good opportunity to be connected with customers always.

As for cannibalization, it need not be so. The fact that the products can be given back to sellers after using, reduces the decision barrier for customers to try new things. The worry of “will it be a waste”, doesn’t bother them anymore. This could create an explosion of experimental buying from the customers. Thereby increasing sales and profitability.

So how does this affect the present business models of businesses?

Be proactive: Explore how you can enter this space. What can be bought back and resold? What can be rented?

Customer Segment:
Which customer segment should be attracted to this? Can a present “non-customer segment” be targeted? How to customize the business and its shopping experience to attract them? Will it affect the sales from the existing customer segment?

Product Quality Review: If a product has to be sold and resold, it has to be of good quality. Do your products have it? How many cycles will it go? What can be done to improve it? Businesses have to build products that are more durable and sustainable – so that they can have a long life. This can be a shift from the present “use and throw” products to more sustainable and durable products. This can save the environment.

Process Change: Study what process changes need to be implemented? What new activities need to be undertaken? Does it need resources and infrastructure? Businesses have to have a team or department, to accept the customer goods, quality checks them, make repairs or cleaning, repackaging it, new showrooms for it or dedicated places in existing showrooms, branding and marketing it, etc.

Re-Branding: The new service and its impact on the public should be structured to ensure brand images are not destroyed overnight. It has to be planned well to sync with the Gen Z and millennials who will be its main customers. Strong brands will have a boost, as more customers will opt for branded products as it available even on a rent basis.

New Channels: Businesses and entrepreneurs have to be ready with the channels for the new product line- the resale buying and selling.

Embrace Technology: Technology will also have to be involved to manage its e-commerce sale.

In short, for customers who are premium brand lovers who can’t afford them, good times are ahead.

For entrepreneurs, who are struggling to get a higher market share, this is a good opportunity to disrupt and penetrate the market.

Study -> Structure -> Disrupt ??