- More than half of consumers look for new products 1 or 2
times a year, at most.
- Sixty-two percent believe there are already enough products
in most categories; 26 percent believe there are too many
options.
- Fifty-six percent of consumers think innovation is done to
help companies, not them.
- Consumers have differing opinions on how much they'll go out
of their way for a specialized or innovative product.
CHICAGO, May 21, 2024
/PRNewswire/ -- While most companies feel pressure to use
"innovation" as a way to satisfy both their customers and their
stakeholders, there's inconsistent messaging around what that
innovation actually is. But the real question is, are consumers
actually demanding innovation? A new survey by the Kearney Consumer
Institute (KCI) finds that, while some consumers want new and
different options, the majority don't look for new products more
than once or twice a year. In its Q2 2024 brief, New
sensation: Demystifying innovation, KCI advises brands on
the importance of listening to their customers and to temper the
pace of innovation to match consumer expectations.
"We set out to try to capture the dual purpose innovation has
for both consumers and brands. Our survey found that across most
categories, 62 percent of consumers feel there are already enough
new and different products on the shelves—in fact, an additional
quarter of the respondents said there are too many," noted KCI lead
Katie Thomas. "This would suggest
that brands can ease up on the drive to put out innovative products
and instead, assess where innovation can bring real value. But
often brands feel pressure to innovate on multiple business
fronts—for example, competitive pressures and challenger brands,
investors, merchandising calendars, and holding shelf space—leaving
more than half of consumers feeling that innovation is done to
benefit the company, not them."
The KCI report advises that innovations should address
customers' needs, as has been seen with new food flavors—perhaps
the most understandable innovation for consumers. For example, more
than half (58 percent) of respondents to the survey said they look
for new products solely in the food category four or more times a
year.
Other findings in the KCI Q2 2024 brief include ways companies
can reorient their innovation strategy to connect consumer needs
with their business objectives, including:
- Figuring out what type of innovation consumers really want
- Dialoguing with top customers and being ready to act on
negative feedback
- Determining the right speed to market
- Deciding how innovation should be delivered
- Understanding that while consumers want specialized products,
it's not always worth it
- Determining which questions to ask to deepen and expand the
consumer feedback loop
"Brands need to understand that they can't be everything to
everybody," said Katie Thomas. "To
be successful, they should take the time to be sure that the
innovation choices they make align with true needs—for example, as
in the case of new reusable feminine hygiene products on the
market. But consumers are tighter with their wallets right now and,
with the exception of trying out new foods or flavors at the
grocery store, they aren't experimenting as much. To innovate
correctly, brands will have to bring together their business
objectives and consumer priorities."
View the full brief here.
About the Kearney Consumer Institute
The Kearney
Consumer Institute (KCI) evaluates today's business challenges
and opportunities through the eyes and experiences of consumers,
advocating a consumer-first perspective. By leveraging consumer
behavior data and insights, the KCI helps generate conversation,
and ultimately action, around how to address consumer needs with
meaningful benefits.
Using a consumer-first lens the KCI looks at today's consumer
revolution not by thinking about consumers, but by thinking like
consumers. Our consumer-centric approach includes simple, precise,
plain-language conversations on topics like trends, consumer
communities, convenience, loyalty, service, fair pricing, and
product development and technologies.
About Kearney
Kearney is a leading global management consulting firm. For nearly
100 years, we have been a trusted advisor to C-suites, government
bodies, and nonprofit organizations. Our people make us who we are.
Driven to be the difference between a big idea and making it
happen, we work alongside our clients to regenerate their
businesses to create a future that works for everyone.
www.kearney.com
Media Contacts:
Meir Kahtan, MKPR
mkahtan@rcn.com
+1 917-864-0800
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SOURCE Kearney