For 2020, the most successful companies in the consumer technology (consumer tech) industry include the US-based video conferencing platform Zoom and Indian conglomerate RIL’s Reliance Retail and its technology division Jio. Naturally, health and safety technology remained more important than ever in 2020. One of the tech community’s primary goals has been to allow people from all over the world to operate and attend their work remotely and support their increasingly housebound lives.
Let us note and explore some ideas and concepts you can follow to enter the growing Consumer Tech industry as a new Consumer Tech start-up or entrepreneur.
In today’s changing time, experts recommend not go into a physical model of a business, like retail stores and logistics, because they have high capital requirements and limited profit margins. But, on the bright side, segments like consumer electronics are a substantial entry-level market. As of 2020, the global consumer tech and electronics market is valued at $838.85 billion.
After introducing high-tech equipment technology in 2020, the consumer tech smartphone industry seems to have undergone a significant change.
Essential building blocks for an E-commerce and Consumer Tech start-up
Wholesale contracts: E-commerce and retail businesses are based on buying wholesale products at the lowest possible price and selling them individually at a profitable price. Such contracts and wholesale acquisition are vital to establishing a business, and consumer tech solutions like website and customer support can boost advances.
Logistics and Transportation (L&T): In the retail sector, a lot of money has to be spent on logistics and transportation services. A long-term contract with a shipping company can help you make a profit and improve the overall way of running your business.
Storage and warehousing: An e-commerce business bears a high cost of storage. Regular retail segments do not include any inventory, which depends on the difference between sale and point of purchase.
Consumer Tech start-up: Trends for entering the industry
Recently, robust and technologically advanced measures have formed many companies’ core strategy to fight and resist COVID-19 and other potential future pandemic. Taking inspiration from companies like Kinsa, new age medical devices like smart thermometers that collect data from thousands of devices can be initiated or created by tech start-ups to break new ground in the devices and services industry.
Work and study from home equipment
One area in which business and innovation proliferated last year was working remotely and studying from home conditions. From furniture to computer makers, everyone looked for ways to bring technical solutions to the newly renovated home offices and classrooms that became a standard part of everyday lives.
Remote education is a new reality for many people, and companies are introducing new platforms in this field. For companies like Zoom and edtech and training ventures, there is, of course, enormous potential for growth in the years to come.
Video conferencing and other equipment used to restore the classroom environment are all the rage in the education industry, and tech entrepreneurs and start-ups might risk missing out on this opportunity for success if they don’t act swiftly.
Almost all ‘cool’ new-age games and devices need data to run, and 5G is the future. This new consumer tech is expected to bring digital information channels into our lives faster than ever.
Many of the primary device manufacturers are promoting new 5G compatible cell phones. After introducing high-tech equipment technology in 2020, the smartphone industry seems to have undergone a significant change. Companies like Motorola have introduced budget 5G smartphones. To meet tech giants’ needs, start-ups need to supplement the workload and gain from the opportunity.
Indian Consumer Tech start-ups who made it big in 2020
Pepperfry: This online furniture and decoration marketplace has raised a total of $240.5 million in eight rounds of financing.
Rentomojo: It is arguably India’s premier rental platform, offering a wide range of rental products. Rentomojo raised $48.5 million in total funding and is valued at $ 100 million after new financing in 2020.
Testbook: It is the ultimate website for online exam preparation and mock practice tests and raised $8.3 million in funding in the Series-B round.
Coverfox: This online insurance product collection platform raised $ 5.79 million in 2020 from many investors and VCs.
In a nutshell, as these companies made their mark in the industry by giving beneficial consumer tech solutions, they are also a pathfinder for new and upcoming businesses to make their presence felt in the sector.
Technology has been at the forefront for a long time, and it is undoubtedly the industry of the future. All that start-ups and entrepreneurs need to do is capture the gaps with viable consumer tech solutions and take the prize away.