Innovation captures consumer interest and attention, attracting both new customers and faithful loyalists. It can provide retailers with an edge and drives profitability and growth.
Consumers show an affinity for brands which are investing in new product development. More than half (52%) of New Zealand respondents say they like it when manufacturers offer new products, and over a third (36%) say they’ve purchased a new product during their last grocery shopping trip.
But new product success isn’t easy. Millions of dollars are spent developing and launching new products each year, but the reality is failure rates are extremely high.
Greater affordability was the key driver of new product trial for consumers in New Zealand followed by novelty and recommendation.
New Zealanders want products at affordable prices to stay within their weekly grocery budget. Over a quarter of respondents (29%) bought a new product as it was more affordable than what they usually use. Smart suppliers aren’t selling their products at low prices and on promotion but building cost-cutting in the development and design process.
In terms of nascent product demand, consumers indicated products that centred on affordability, novelty, health and convenience were a key focus.
There is an increasing awareness of and focus on health. Nearly three-in-five New Zealand respondents (59%) in Nielsen’s recent Global Health & Wellness Survey consider themselves overweight and half (51%) are actively trying to lose weight. And they’re looking for help from the food and beverage manufacturers to make healthier choices.
Consumers are increasingly time poor, as a result we crave anything that makes our live easier and provides us more time to do what we love. More than a quarter of Kiwi respondents say they purchased a new product because it was convenient (23%) and one-in-seven (14%) because it made their life easier. Timesaving products include seasoning mixes, pre-sliced vegetables and prepared meals can save time in the kitchen for consumers.
When it comes to obtaining information on new products, recommendations from family and friends and seeing it in-store are the best sources of new product information with 60% ranking these as their top five sources. Television advertising plays a key role – one-in-10 consumers in New Zealand rank it as their number one source of new product information and half (50%) rank television advertising in their top five resources. Internet searches and free samples are also key influencers of new product trials with 45% ranking active internet searching in their top five resources of new product information and 39% ranking receiving a free sample in their top five sources.
The Nielsen Global New Product Innovation Survey was conducted between Feb. 23 - March 13, 2015, and polled more than 30,000 consumers in 60 countries throughout Asia-Pacific, Europe, Latin America, the Middle East, Africa and North America. The sample has quotas based on age and sex for each country based on its Internet users and is weighted to be representative of Internet consumers. It has a margin of error of ±0.6%. This Nielsen survey is based only on the behavior of respondents with online access. Internet penetration rates vary by country. Nielsen uses a minimum reporting standard of 60% Internet penetration or an online population of 10 million for survey inclusion. The Nielsen Global Survey, which includes the Global Consumer Confidence Index, was established in 2005.