As the world returns to a new definition of ‘normal’ the evolved Indian consumer seeks a different order of priorities, one where efficiency, convenience and a wholesome experience rank amongst the top few considerations. There is an increasing desire to go beyond the good enough and seek the most optimum solutions to challenges. While this trend has been growing since some time, the heightened acceptance of the YOLO (You Live Only Once) mantra during the pandemic has accelerated the need for brands to adopt innovation as an integral part of their growth strategy. Till a few years ago, being the first to create a brand in a largely unorganised retail sector was enough to drive differentiation. However, as the retail sector matures and consumers evolve, there is a need to scratch beyond the surface and drive deep innovation in order to stay relevant and achieve growth.
Product-led innovations have fuelled the rise in start-ups and D2C brands across categories. The key is to identify a better, quicker or more efficient solution to a problem. For instance, sleep aids and accessories, as a category, have seen some interesting innovations. With stress-induced sleep problems and back aches becoming increasingly common and the wellness trend on the rise, The Sleep Company saw an opportunity to leverage technology to find a solution through the SmartGRID mattress that takes the shape of the body to help relieve back pain and induce better sleep. While a new-age Canadian brand called Lusome has reinvented sleepwear and bedsheets through a technology called Xirotex to manage moisture and body temperature through their nightwear for better sleep… We are therefore seeing a constant convergence of Science and Consumer products these successful innovations indicate that even in a category often seen as unorganised, boring and mundane, there is an opportunity to find those glaring gaps that can be identified and addressed in a unique, creative and profitable manner to driver differentiation and build strong brands.
Brands such as Mama Earth were amongst the first to innovate safe toxin-free products for baby care and build a new category in India. While brands such as Nat Habit saw an opportunity to introduce baby products such as ‘ubtans’ that aren’t simply toxin-free but also include the goodness of Indian traditional baby skin ritual. Thus, building a new subcategory of kitchen fresh personal care products that don’t simply offer innovation at the product level but also with regards to supply chain and manufacturing in order to profitably support the low shelf life. We are not far away from a time when Personal care companies will customize a regime for an individual based on her DNA.
Innovations in the supply chain have played an important role in supporting the quintessential delivery models for fresh food brands such as Licious or even the many dairy companies that have emerged to offer fresh, healthy milk and dairy products at one’s doorstep to meet almost every dietary restriction. While international fast-fashion brands such as Zara and H&M have been credited with building a unique supply chain model that listens and acts on consumer feedback in record time, Indian fashion brands such as Fable street are reimagining sizing and comfort using data-specific Indian body types.
While innovations in the product type and supply chain are critical to ensure brand longevity and success, innovation in marketing and packaging can be equally important to differentiate in a cluttered category. For instance, Two Brothers Organic Farms has created packaging that is safe and yet minimalistic and good for the environment. Glass bottles such as ghee, oils are placed in a sturdy carton packaging and do not use any plastic or bubble wraps. The design innovation is such that the packaging is strong enough to be thrown over 2 stories or even run over a truck. The company has seen significantly reduced returns due to damage to the bottles.
As mindfulness and sustainable living become a mantra, consumers increasingly seek brands that innovate in design, sourcing, manufacturing or packaging to build capabilities that ensure great products or services with minimal environmental footprints or negative impact on society.
For brands that seek to not simply survive but thrive in the new world order, innovation must be entrenched as part of their core strategy. In consumer-led businesses, innovation is prevalent at each level – at the product level, at the consumer level, at the supply chain level as well as in manufacturing and packaging. Innovation is the perfect balance of art and science. Thus, in order to introduce and nurture a culture of innovation, it is imperative to empower employees with the comfort and confidence to think outside the box as well as incorporate the ‘fail fast’ approach with an agile organizational structure.
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