New Products: Renewing a Focus on Innovation
New product development is expected to pick up in 2013, as executives' confidence in the economy improves.
An exclusive Retail Leader survey indicates about two-thirds of executives surveyed expect their companies to focus more on new products this year than they did in 2012. More than one-third of respondents are forecasting new products to generate at least 20 percent of their 2013 revenue, and 21 percent expect product introductions to account for 30 percent or more of their revenue, the survey suggests.
Companies are using a variety of marketing approaches to spread the word about their new products, with 25 percent of respondents indicating store displays are the single most effective way to generate awareness of them. One in five executives surveyed said in-store cross-promotions were the top marketing approach for new products, while 17 percent identified traditional advertising and 14 percent singled out in-store circulars as the preferred method for generating awareness.
Retail Leader's economic survey suggests conditions are improving, with 41 percent of respondents feeling positive about the current situation and 49 percent bullish about the next six months.