Why Hardware Will Win In 2020

THe last mil effect: Prepare for the comeback of the hardware companies

Amazon should give away Alexa devices

Apple and Netflix should produce and give away TV's

Microsoft should give away the Xbox console

Tide should give away Laundry Machines.

Google should give away laptops.

In a world obsessed with the software I believe that hardware will play an increasingly important role moving forward as a loss leader. Owning the "last mile" creates the ability to drive the end-user's experience and create intravenous distribution methods.

Transcription:
I think that that last mile effect, where whoever has that hardware device, I think hardware is gonna have a renewed importance in 2019 and beyond. The dissemination of Alexa devices in the home has put Amazon in a real position of strength when it comes to branding and brand equity.

So what does that mean for the future of branding? Do a lot of these companies need to get into hardware? Like I say all the time, if you make laundry detergent you should but a company that makes laundry machines. Which are smart, and only only order your product. Sell those to the big developers of buildings in major cities.

And you have intravenous model because you don't have to rely on people going into Walmart and actually picking out your brand from a slew of other brands, and oh by the way Walmart has its own private label brands. So I think that's where a lot of this needs to change.

I think the job of a CMO is no longer really even about brand building anymore. It's about building ecosystems in which their product can actually thrive in a way that's just beneath the surface, not basically trying to send down sales people to get a couple inches of shelf space at Target or Walmart. And that's a huge change.