You control the entire value chain – from new concept inspiration to the selling floor. What's the impact when you get it wrong?
New product challenges include:
- Knowing which designs and attributes will resonate with consumers
- Reducing the cost of manufacturing samples and increasing the adoption rate
- Determining the buy depth of each new item to avoid stock-outs and over-stocks
- Identifying the right initial price
- Making the right offers to the right customers to drive conversions
In specialty retail, new products fail at a rate of over 50%, according to Gartner and other sources. First Insight’s benchmark data show that new product failure rates are actually well over 60%.
Some specialty retailers attempt to test new products in stores prior to making their buys. On average, costly and time-consuming in-store testing yields failure rates of well over 50% because products are typically tested out-of-season in a small subset of stores, with inconsistent approaches to implementation.
First Insight helps you improve your new product success rates by:
- Enabling hundreds or thousands of products to be tested fast
- Providing rapid feedback from thousands of customers
- Engaging your customers through fun mobile apps which drive customers to shop your website and your stores
- Forecasting top sellers so merchants and planners have confidence to make deeper buys
- Identifying winning attributes
- Testing at the CAD stage as well as the sample stage, reducing sample costs, increasing the adoption rate, and optimizing SKU performance
- Forecasting price elasticity, including a forecast of the Average Unit Retail price and optimal initial price of each item
- Helping target the right customers with the right products and the right offers