How launch activity has changed
a pre/post Covid-19 comparison
More brands were active launchers in 2019 compared to 2022
The percentage of brands launching at least one new product has declined between 2019 and 2022. While 56% of all Top 10 brands introduced at least one new SKU in 2019, that number dropped to 51% in 2022. This pattern applies to large and small brands equally: across all ranks we see a drop in launch activity.
Fewer launches – but higher contribution to brand sales
Despite fewer brands launching new products, the sales contribution from these new products increased from 12% in 2019 to 14% in 2022. One hypothesis is that the drop in the assortment share of new products (from 17% to 15%) allowed companies to support these launches more effectively (both pre- and post-launch).
The price premium of launches has decreased
Another reason for the higher contribution of new products could be lower price premia relative to the existing assortment of the brand in 2022 compared to 2019. While the average price paid for new products exceeded the average price of the launching brand by 18% in 2019, this premium declined to 12% in 2022. Larger brands attain higher premia for their launches in both 2019 and 2022.
