Develop V.S. Trade Product

I met a friend who is sourcing the consumer product from the market. The difference is that they combined more than one product to a set. They plan to sell on the web and the market with their brand series. The profit margin is more than 30%for a set. At this case, I got some clue.

Most of us develop a product focus on single function or specific purpose. We emphasize the single function or specific advantage to competitors. We never consider the application or user's behavior to combine other devices. The difficultly for the promotion is user has to integrate what they want components or parts with the product. Or we develop the product embedded more function in the product. Users can play it as easily. But, it is not easy for today's market. Time to market is important, we develop a new product takes time and risk. Competition is getting complicate since technology is getting mature. Therefore, who will be the winner in the market? The ID housing design, brand name or the advance technology will be. How is easy to have the opportunity for a small or middle company if they didn't have big channel or key player support. Who can quickly source the perfect product from the market and combine it for users? Who can provide the one stop shopping? Then, he will be the winner.

My friend can provide those combination to integrate with different source product together. They provide the convenience to users in the market. The really value is not the cost, but they can keep the latest technology and unit service to users. The product compatibility and functionality is not an issue. Service or maintenance is not an issue as long as they can keep good relationship with the product suppliers. There is also disadvantage, such as they only can keep on niche market. You have no opportunity to sell into main stream market or customers. However, if the company doesn't take much fixed expense, they can survive at all.

I would like to see more progress for my friend's company, since they know what is user wants. On the other hand, the product developer, they only can know sell the unique product with the single function, they never know how to combine with other different product together. I suppose they don't want to, even they know it.