[Insight] Things Startups Need to Prepare after CES Awards

Present a Business Model Over Technology. I

A key insight from post-consulting Korean enterprises, particularly startups that participated in CES is that buyers at the show are less intrigued by technological supremacy and more by the applicability of these technologies in their local contexts.

Eureka Park at CES, renowned as a global platform for innovative startups, showcases the latest technological advancements and unique products, capturing worldwide interest. However, transcending the glitz of CES, real market success demands something beyond mere technical excellence – a robust 'business model'.

Prioritize business models over technological prowess.

This year, Korean companies have notably garnered numerous CES Innovation Awards. This recognition of their technical excellence on an international stage is commendable. However, receiving these awards does not directly translate into business success. A viable business model is crucial for effective technology implementation and sustainable revenue generation.

Many startups I've consulted encountered negotiation delays and breakdowns with buyers, primarily due to lacking or inadequate business models. Essential elements of a business model that startups should consider before CES participation include:

1.    Pricing Policy

Determining a pricing strategy prior to a product or technology launch is imperative. Pricing should reflect the local market conditions, customer purchasing power, competition, and costs – a vital consideration before entering any market.

For instance, Company A at this year's CES, while showcasing superior VR technology and products, faced challenges in buyer negotiations due to a pricing strategy that failed to account for local market conditions. This highlights the significance of market-aligned pricing policies in strengthening negotiation leverage with buyers.

2.    Local Sales Support

To thrive globally, startups must adopt a localization strategy that accounts for the local culture, regulations, language, and consumer preferences. Tailoring sales support to the local market enhances product adoption and bolsters brand recognition.

Company B, which introduced wearable devices at CES, not only clinched an innovation award but also secured various achievements, including on-site MOU signings with buyers. Their success stemmed from pre-emptive meetings with buyers, emphasizing product development and applicability specific to the U.S. market. This approach to localized sales support is instrumental in increasing local customer loyalty and tapping into diverse market segments.

3.    Post Sales Support

In local markets, whether selling directly or through agents, a predominant concern is the availability of post-sales technical support. Providing ongoing support and service is crucial for enhancing customer satisfaction and establishing long-term relationships with local agents and end customers.

Company C, participating in this CES, presented motion recognition technology utilizing Korean wave content, leading to partnerships and business developments with U.S., Japanese, and Korean companies. Their distinction from competitors lay in their technology and ability to leverage unique Korean content for business. Company C's commitment to ongoing technical support and content collaboration was a key factor in their success, underlining the importance of post-sales engagement in buyer negotiations.

CES is just the beginning.

In recent years, participation in CES, particularly Eureka Park, has become a trend among many Korean local governments and startups. However, showcasing innovative technology at CES is just the start. Sustainable market success is achieved through an effective business model encompassing elements like pricing policy, local sales support, and post-sales support. When these elements are integrated, technological innovations can translate into real-world market triumphs.

Buyers are consistently looking for the business value that technology can bring them.

Organizations and companies participating in CES and other international trade shows should recognize the importance of meticulous business model planning in converting post-show participation into tangible results. Buyers are consistently looking for the business value that technology can bring them.

(C) VM Consulting