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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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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: 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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Future of Food Industry & How Kerala Can Benefit?

What are the major challenges that the Food & Beverage Industry players will face in the future?

Now is perhaps the most challenging time for food and beverage manufacturers. The rising cost of materials and manpower, customer experience sharing at a global scale, shrinking margins due to tough competition, the constant shift in consumer tastes, fluctuations in agricultural outputs- has all contributed to heavy challenges not just to F&B manufacturers in Kerala, but national and international players.

What are the major developments that the Food & Beverage Industry players will face in the future?

But these challenges are the opportunity for the real visionary businesses to beat competition, excel, and gain market shares. One of the important tools to be used by these visionary businesses will be technology, in its various forms, from sourcing, manufacturing, supply chain management, branding to end-customer experience.

According to a white paper by GE released at the “Gulfood Manufacturing 2018”, these technological changes can range from Industrial Internet of Things (IIoT), connected industrial units,  proactive repair of machinery based on real data, smart asset management, low-cost effective sensors, usage of the “Cloud”, big data, artificial intelligence- and many more technologies that will help reduce drastically wastage of raw materials, damages to finished or semi-finished products, prevent overproduction or underproduction, reduce cost and increase margins, besides target marketing to target customers.

According to GE, their customers (business and manufacturers who opted for their technology) stated operational efficiencies such as up to 20% reduction in unplanned downtimes, 20% inventory reduction, more than 20% recovered capacity, up to 40% EH&S incident reduction, up to 20% reduction in maintenance, up to 10% inventory cost reduction, 8% decrease in field service cost, 9% increase in equipment uptime, 13% decrease in average time to repair and so on.

How does Kerala or Kerala-based Entrepreneurs Benefit?

There are several unconventional opportunities for adventurous daring forward-looking entrepreneurs in Kerala. Like,

Build and operate “modern” technology-oriented farms: Global consumer packaged foods manufacturers are facing the security of agricultural inputs. To overcome this, they are purchasing farmlands in other countries, to overcome any shortage of agricultural produce. Currently, they are looking at China and Africa. This is an opportunity for modern agro-entrepreneurs who can own, manage and bring agro-products of global standards. To be cost-effective and quality assured, these farms should be capital intensive than manpower intensive. It should use all the latest technologies to ensure maximum output, with minimal harmful chemical usage, and that too at a minimal cost. This will bring a new breath of life to the fertile lands of Kerala. This is an opportunity that Kerala-based entrepreneurs can do in other states of India as well, where farmland availability will not be an issue.

Build Consumer Brands to Sell: Global consumer brands face two types of hard competition that affect their survival and profitability. One is the usual competition they face from other global players. Other is competition faced from the local consumer brands (who have a better local knowledge about the local customers). As part of their inorganic growth strategy, the global players have a tendency to buy local brands. This is a good opportunity for new-age young entrepreneurs who wish to sell off their brand at a handsome price and start a new venture. This is especially ideal, when the local brands are suffering from the tough competition (despite having a good market share), and going ahead is not that easy. It’s a win-win situation for the buyer and the seller. So the opportunity is to build a great brand that you would sell at a high price when the competition gets really tough.

Technology Ventures: There exists the opportunity for specialized technology firms that will provide technology solutions (hardware, software, or platforms) to the F&B sectors. The opportunity is global, as these ventures can sell their products or services in the global market. This is the biggest opportunity for Kerala, as thousands of specialized technology ventures can be market players. And Kerala’s IT parks and IT professional pool can be a good resource. But the key is to specialize, as only when there is specialization they can invest in research, R&D and know the market needs better.