In this episode of The eCom Growth Show, Danan Coleman interviews Mauricio Villalobos, founder of IDW Innovation Studio. Mauricio shares how product design, engineering, and innovation strategies can help eCommerce brands set themselves apart, extend product lifecycles, and reduce costs through thoughtful design internalization and portfolio strategy.
Meet Mauricio: The Design & Innovation Expert
Mauricio Villalobos is a product design engineer and founder of IDW Innovation Studio. With over 10 years of experience in industrial design and mechatronics engineering, Mauricio specializes in helping eCommerce brands in the consumer durable goods space innovate and grow through:
- Design Internalization: Creating products that stand out from competitors.
- Portfolio Strategy: Planning incremental and impactful product improvements.
Why Design Internalization is Crucial for eCom Brands
Most eCommerce businesses rely on reselling or sourcing products already being produced by manufacturers. While this approach offers lower risk and faster entry to market, it comes with a major limitation: lack of control over the product.
The Problem With Commodities:
- Products sourced directly from suppliers often turn into commodities, driving down profits.
- Competitors quickly saturate markets with similar products, shortening the product lifecycle.
- Brands must spend heavily on marketing just to maintain visibility and sales.
The Solution: Design Internalization
- Brands can take control by designing their own products or making incremental improvements to existing products.
- This approach reduces dependency on suppliers and creates unique, innovative products that stand out in the market.
Key Insight: “If you’re just sourcing and reselling, you’re not innovating—you’re just buying the next commodity.”
Portfolio Strategy: Extending Product Lifecycles
Mauricio emphasizes that innovation isn’t just about creating new products—it’s about planning for the entire lifecycle of a product.
How a Portfolio Strategy Works:
- Incremental Improvements: Small changes that improve product quality or reduce costs (e.g., updated features, material changes).
- Major Innovations: Larger improvements that disrupt the market and attract new customers.
- Parallel Product Lines: Expanding into related product categories to diversify and grow your business.
Real-World Example: Brands like Apple and Tesla excel at making small, incremental improvements while planning for larger innovations in their product roadmaps.
Key Takeaway: A portfolio strategy ensures you’re not reacting to competitors but proactively planning the future of your product line.
Case Study: Real-Life Product Innovation
Mauricio shares an example of how IDW Innovation Studio helped a brand redesign a critical product component to improve user experience and reduce costs.
The Challenge:
- The original product had multiple parts, required drilling, and didn’t adapt well to different sizes.
- Production costs for the original version were $6 per unit, with multiple units required per product kit.
The Solution:
- IDW Innovation Studio redesigned the product to simplify the user experience while improving functionality.
- Through prototyping and engineering iterations, they reduced production costs to $3.38 per unit.
- The new version was not only less expensive but also significantly better than the original.
Insight: Prototyping doesn’t have to be expensive. IDW provides clients with weekly iterations to ensure products are commercially viable, functional, and cost-effective.
Who Should Consider Product Innovation?
Mauricio explains that not every brand needs to innovate right away. Instead, product design and portfolio strategies are ideal for brands that:
- Are generating six-figure revenue or more.
- Have already maxed out marketing strategies and are seeing diminishing returns.
- Want to reduce production costs or extend the lifecycle of existing products.
Key Insight: “Max out your marketing engine first. When you can’t grow further, that’s when innovation will take your business to the next level.”
How IDW Innovation Studio Works
IDW Innovation Studio provides a customized, hands-on approach to product innovation:
- Dedicated Engineer: Each client is assigned a dedicated engineer to lead the project.
- Weekly Updates: Clients receive weekly iterations and prototypes to ensure progress.
- Cost Optimization: IDW works with your existing suppliers or sources specialized manufacturers to reduce costs.
- Long-Term Strategy: Product design is aligned with a roadmap for incremental and major innovations.
What Products Does IDW Work On?
- Consumer Durable Goods: Non-perishable, physical products like electronics, camping gear, tools, and household items.
- Products involving plastic injection, metal stamping, or similar manufacturing processes.
- IDW even tackles complex products involving electronics and hydraulics where expertise allows.
Fun Fact: One of IDW’s products, a moisture sensor for plants, was recently featured on Shark Tank.
Final Takeaway: Why Innovation Matters
Mauricio believes that thoughtful product innovation not only helps brands stand out but also reduces waste, improves product quality, and makes the world a better place.
Key Quote: “If you’re improving your products, you’re creating value and making the world better—one innovation at a time.”
How to Connect With Mauricio
To learn more about how IDW Innovation Studio can help your brand with design internalization and portfolio strategy:
- Email: Contact Mauricio at [email protected].
- Website: Visit IDWMX.com for more information and inquiries.
Final Thoughts
If your eCommerce business is ready to take control, reduce costs, and extend product lifecycles, product innovation is the key. IDW Innovation Studio provides the expertise and support you need to set your brand apart today and in the future.
Stay tuned to The eCom Growth Show for more insights from leaders like Mauricio Villalobos, who are helping brands thrive through strategic innovation.