“Innovating on established brands that are already trusted by consumers can be a powerful strategy,” said Rob Wengel, Senior Vice President, Nielsen Innovation Analytics. “Companies spend millions of dollars on new product innovation, yet two out of every three new products will not be on the market within three years. Marketers and retailers can deliver successful new products by ensuring they uncover unmet consumer needs, communicate with clarity, deliver distinct product innovations, and execute an optimal marketing strategy.”
Half (50%) of global respondents say they are generally willing to consider a new product purchase, with respondents in North America and the Middle East/Africa (57%) most enthusiastic about making a switch. Nielsen’s survey shows that value and proof-of-concept make a difference: more than two-thirds (64%) of respondents say they would consider value or store-brand options, and two-thirds (60%) will wait until a new innovation has proven itself before making a purchase.
“Consumers are enthusiastic about adopting new product innovations but somewhat apprehensive about embracing new brands,” said Wengel. “In order for consumers to adopt new brands, marketers need to launch very strong awareness and trial-building campaigns, supported by a positive product experience. Generating positive word-of-mouth endorsements are important, because negative experiences can significantly diminish the likelihood of new product success.”
While there is no one-size-fits-all approach to developing a compelling new item, brand familiarity is clearly one of several key characteristics that resonate strongly with consumers so that products are easily recognizable on the shelf.
While most shoppers might be turned off by this type of merchandising, it's obvious from the previous versions — all of which are sold out — that the concept connects with an affluent customer willing to spend $330 on a lifestyle sans actual product photos.
As competition to attract customers grows fierce among domestic retailers in Japan, some brands have begun staffing select locations with a new breed of customer-service experts to cater to the general needs of tourist shoppers, reported The Japan Times.
Uniqlo has introduced nearly 20 concierges to provide directions to the nearest stations and information on nearby restaurants at its flagship store in Tokyo’s Ginza district. Since nearly 30 percent of the Ginza store’s customers are foreign visitors, the concierges are picked from among multilingual employees. Each of them speak at least one of four foreign languages — English, French, Chinese and Korean.
Tower Records has also embraced the concierge approach at the Shinjuku store by creating a “concierge counter” dedicated to handling customers’ inquiries. According to The Japan Times, the counter was added because the ordinary store staff found it difficult to attend fully to customers’ needs on crowded store floors.
The trend in Japan isn't exclusive to retail. Pasona Group Inc., a staffing service company, has trained around 70 “eco-concierges” to answer any questions about environmentally friendly home appliances and instruct visitors on how to use a battery recharger for electric cars at showrooms and exhibition booths. In addition to providing eco-friendly tips, they also offer cooking lessons using an energy-efficient induction-heater cooking system.
@picklepocket Agreed. Esp w/ news of Louis Vuitton remaining most valuable luxury brand despite losing ground against competitors.
@beautybets I'm fantastic. Are you going to NYFW this year?
Have you hugged your servers lately? Study reveals the importance of good service: http://t.co/IILLSz84Jk
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