Posted by Filipa Silverio on Jun 01, 2021
Our first article continues the theme that the same rules and drivers of growth apply to retailers as for manufacturer brands – this week, physical presence. Our second two articles look at new product launches in 2020 – despite the pandemic, the market was extremely active in the number of introductions and in their performance.
- Like for manufacturer brands, physical presence within a category is an important element in retailer share growth – the biggest share winners increased SKU count by more than double the rate of share losers – and the number of brands increased rather than decreased.
- Despite the pandemic, the scale of new product activity in 2020 showed a high level of renovation and only slightly fewer true innovations – and as published a few weeks ago, this was especially the case for brands that gained share. As always renovations dominate – 11 times more than innovations.
- Not only was NPD high in 2020, it was also translated into purchasing – the contribution to brands compared favourably with prior years – and again, it was the share winners who were the drivers. Innovations are twice as effective as renovations – 1 in 11 by number but 1 in 5.5 in contribution.