Matt Britton argues Tide should become a hardware company, embedding smart washing machines into real estate developments instead of just selling detergent. He sees this as the future of CPG, replacing traditional advertising and retail with direct consumer relationships built into homes.
But if I were a CPG manufacturer, I would actually take after Apple and not just be a software company, but be a hardware company. Meaning if I were tied, I would make washing machines. I would make small washing machines. I would call the biggest real estate developers in New York, Chicago and LA and say, we will give you these washing machines for free. Most millennials really only wash wine glasses, I found out. But even if they're washing other shit, it doesn't need to be the big washing machine. Some people use it as storage. Did research on this, but. But. So if it's in a drawer, give it away for free, right? It's a smart device and every time it runs out it only takes tide. Now all of a sudden these guys don't have to build a brand at all, right? Their advertising budget goes away completely and they're a hardware company. They have an intravenous selling model. Don't be a software company, be a hardware. Invest in the infrastructure.