Understanding what shoppers need from product innovation
Shopper confidence started to stabilize in 2023 at a low stage. Many shoppers have tailored to life in a poly-crisis of excessive inflation and stagnating progress by decreasing discretionary spending in sure segments or throughout the board. On this surroundings, innovation for the sake of innovation shouldn’t be going to persuade cautious shoppers to make a purchase order. As an alternative, it’s strategic innovation that has a direct affect on their lives that can have the largest affect.
In 2023, 4 areas have emerged as the important thing methods for manufacturers to focus on innovation funding in ways in which resonate with shoppers throughout all revenue teams:
- Simplifying duties – Folks need merchandise that assist them optimize their time. This may be seen within the progress of air fryers and robotic vacuum cleaners. Individuals are prepared to purchase much less usually however spend extra on merchandise they view as including worth to their lives. This may be seen within the success of reasonably priced premium product ranges.
- Permitting better experiences – One of the widespread examples of that is the pattern for distant management of gadgets. From digital central heating to lights managed by way of smartphone apps, shoppers are displaying a desire for merchandise that enable them to regulate programs remotely by way of their linked gadgets.
- Aspirational design – Customers nonetheless present a want to personal and determine with merchandise which are considered as fascinating and unique.
- Enabling enhanced measurability – Larger shopper concentrate on sustainability financial savings in addition to well being and wellbeing are driving shoppers towards merchandise that allow nearer monitoring of ongoing efficiency. This may be seen most strongly within the wearables market, the place individuals can now observe every part from their sleep to blood stress.
“Regardless of excessive ranges of financial uncertainty, shoppers nonetheless have a really clear thought of what they need from the manufacturers they work together with. If they don’t seem to be changing or upgrading present merchandise, then shoppers are looking out for merchandise that assist them lead happier and more healthy lives. Manufacturers want to grasp how their merchandise can align with these goals.”
Sheila Kurniadi, International Guide gfkconsult
Particular person teams are driving progress
One other technique to goal innovation funding in a method that may higher facilitate gross sales progress is to concentrate on particular shopper teams. There are pockets of market progress coming from teams like content material creators, avid gamers and health fanatics. Manufacturers that may present these teams with progressive new options or reasonably priced premium worth factors couldn’t solely drive a progress in gross sales however assist place their manufacturers properly for when the market recovers.
The gaming business, for instance, is large. Yearly billions of shoppers buy video games, consoles and a variety of equipment starting from specialist furnishings to keyboards and VR gear. The market can be anticipated to proceed rising over the following few years, creating an enormous alternative for manufacturers that may assist avid gamers obtain greater efficiency experiences or simplify their setup. The rise in content material creation can be serving to to stabilize gross sales of high-end cameras and different specialist mild and sound tools.
Understanding the place and the best way to innovate
For manufacturers trying to benefit from their innovation investments, it’s important to begin by trying on the present market surroundings and the way it’s influencing shopper ache factors and motivation. On this situation, innovation doesn’t must re-invent the wheel – it has so as to add worth to individuals’s on a regular basis lives. Whether or not it’s by way of monitoring well being metrics or serving to them prepare dinner dinner for his or her youngsters in minutes, shoppers need merchandise that justify their buy each day.
Innovation requires perception. Keep forward of your market with GfK’s shopper intelligence options.