Urban consumers prioritize novelty: 34% eye new products, 40% seek innovation: NielsenIQ
Dec 11, 2024
New Delhi [India], December 11 : Urban consumers are fueling an insatiable appetite for novelty, with 34 per cent prioritising new product availability, according to the NIQ Consumer Survey.
The report added that about 40 per cent customers actively seek out innovations in order to be among the first adopters, with Gen-Z and women leading the way.
The report added that this new trend presents brands with a fantastic chance to interact with customers through relevant and timely innovations.
According to NIQ BASES, top innovators in India achieve four times higher velocity and double the distribution in their launch year compared to category averages for new launches. This demonstrates how strategic innovation can propel brands ahead of the competition.
Winning products in India saw on average a 90 per cent increase in sales during their second year compared to their first--a testament to the power of purposeful innovation.
NielsenIQ stated that this year's Breakthrough Innovation Awards winning products in India saw on average a remarkable 90 per cent increase in sales during their second year compared to their first--a testament to the power of purposeful innovation.
About 140 Indian brands are among the more than 900 international FMCG companies that have received recognition for their creative innovations since 2012. The innovation spectrum is led by Food and Beverages (48 per cent) and Personal and Home Care (52 per cent), with Tech and Durables being added to India this year.
"In today's fast-evolving marketplace, where consumer expectations are constantly shifting and market conditions remain unpredictable, innovation continues to be the driving force behind sustainable growth," said Vijay Udasi, Strategic Analytics and Insights Leader - India, NIQ.
"Innovation is not just a moment; it is a long-term strategy. Launching successful innovations in the market is a highly effective way to keep your brand competitive and relevant by fostering consumer-driven growth and securing retailer support, even during challenging economic conditions," he added.
Observing the trends, Vidya Sen, Executive Director, Customer Success - BASES, NielsenIQ said, "India's innovation landscape reveals a clear path to growth. In 2022, the launch period for this analysis, Foods dominated successful product launches, with Biscuits, Salty Snacks, and Confectionery leading the charge, while Skin Creams and Toilet Soaps stood out in non-Foods."
NIQ Consumer Survey reveals that Gen-Z and women are actively seeking innovation and claiming to shop for new products before the others did.
"The appetite for novelty is undeniable. For brands, this presents a strategic opportunity to capture consumer interest and drive sustained growth through meaningful and timely innovations," Sen added.
