Innovation is the path that leads to growth

In the developed world 75 percent of FMCG innovations fail. Half of the 25 percent that survive realise sales below the expected level and in the end only 6-7 percent of all FMCG innovations become successful. These products have to make enough returns to finance the development of new innovations. We think that there are 4 key elements that make an innovation successful:

1. Comprehensive view of the relationship between the market and consumers, specifying market trends – consumers want simple offers and are looking for safety. 2. Uncovering future demand in order to be able to forecast how the market will influence consumers – consumers can’t always define what they want, their possible reaction to offers has to be surveyed. 3. Expressing an emotional connection from a new perspective that represents some kind of value for people. Advantages of the highest value are able to establish emotional connections – behind every decision emotions are the driving force, therefore these connections have to be strengthened. 4. Actively forecasting and managing the driving forces behind innovation-adaptation, including the timing of market launch – most of the time success doesn’t occur because products weren’t introduced at the right time.