For Consumer Product Strategy Professionals

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	December 20, 2005 Sell Digital Experiences, Not Products Solution Boutiques Will Help Consumers Buy Digital Experiences by Ted Schadler with Chris Charron, Tenley McHarg

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Executive Summary

Consumer technology sales are broken. Consumers buy digital products but then fail to get the additional products, content, or services that bring them to life. As a result of this failure, consumer technology companies leave $3.8 billion in lost revenue on the table today. To close this gap, digital industries must stop selling standalone devices and services and start delivering digital experiences — products and services integrated end-to-end under the control of a single application. The most promising approach is "solution boutiques" like those of Apple, Best Buy's Magnolia, and mobile retail newcomer IMO. Successful efforts like these will generate $13 billion in 2010.

TABLE OF CONTENTS

• Technology Confusion = Lost Sales
• The Solution: Sell Digital Experiences, Not Components
• Meet The Solution Boutique

RECOMMENDATIONS

• Digital Experiences Will Alter Industry Dynamics

WHAT IT MEANS

• Partnerships Become Critical
• Supplemental Material
• Related Research Documents

This is an excerpt

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