Death of Demand

My associate, Tom Ostenton wrote a brilliant book, called “Death of Demand” a few years ago. He said that market demand does not go on forever. He showed the rate of growth of refrigerators in China declined form 2000 on.

Death of Demand is inevitable and companies must ready themselves for this.

Our own experience in India has shown that there is a decline in the rate of growth of mobile service. The general response to death of demand is to create new products and services so that the customer can be upgraded or moved to new products and services. Very often the basic service is ignored in the quest to upgrade, as we see in today’s mobile scenario. No real attempt is made to make the customers happier or differentiate your selves in the eyes of the customer. All this leads to rapid commoditisation I wrote this in  my article Decommoditizing Commodities: Add Value

What you need to do when demand is reducing or the rate of growth of demand is going down is to increase your customer value efforts to gain loyalty and market share. You make more money by keeping customers rather than by losing and replacing them.

Customer Value is making your products more worthwhile in the eyes of the customer versus competitive products. Slow the death of demand and commoditisation by adding value and getting more customers to stick to you. It will be easier to upgrade them to newer products and services and to gain more wallet share.

Act now, before death is on you.

Gautam Mahajan is a thought leader in Creating Value. He can be reached at

Call at (+91) 9971288580

Gautam Mahajan, President-Customer Value Foundation
M: +91 9810060368
Tel: 11-26831226, Fax: 11-26929055

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