This week we are turning our attention back to innovations: new product launches are much more frequent in categories with high levels of penetration and high purchasing frequency.
Launches that are truly different from existing category offerings are more likely to be branded than your average launch.
The number of people buying a category is closely linked to this category’s innovation intensity
In the UK/Sweden we see a correlation of 0.56/0.57 between the number of new products being launched in a category and the category’s penetration level.
How often a category is bought is also closely linked to this category’s innovation intensity
In the UK/Sweden we see a correlation of 0.47/0.5 between the number of new products being launched in a category and the category’s average purchase frequency.
National Brands account for a vast majority of truly different launches
While about 4 in 10 new products being launched in the UK is a Private Label offering, their share of launches with a high degree of novelty (we count 130 such launches, roughly 2% of the total) is much lower: about 5 of 6 such launches are from National Brands.
