New for old, but products not innovative 11-23 14 Feb 2008

In the past year, almost 6,500 new products hit supermarket shelves, but the fast-moving consumer goods (FMCG) sector suffers from a lack of innovation, says Chris Meredith, senior branding and innovation consultant with consultancy The Leading Edge.

These new products merely cannibalise older products but don’t add value to the marketplace, he reports. “We define real innovation as something that drives a change in consumer behaviour. It’s this change that brings about real growth. When brands simply refresh their offer via range extensions, new flavours and new pack sizes, it helps them maintain their position in the market but doesn’t usually change people’s behaviour or drive growth.”
 
Meredith notes that Australia is largely risk averse when it comes to innovation. He says it’s okay to fail as long as businesses minimise fallout. “While Australian manufacturers should be congratulated for showing bravery and releasing products they believe to be innovative, the new products should be grounded and backed up with solid research and insight into the consumer’s needs.”