Survey shows: Retailers give innovations too little time
A survey conducted by Promarca, the Swiss Association of Branded Goods, among the 100 CEOs of its member companies shows that the Swiss retail sector does not give new, innovative branded products enough time to establish themselves in the Swiss market.
60% of companies estimate 1 to 3 years for this, but only one in four is granted this period by retailers. The majority (67%) of innovations have to assert themselves within the first 12 months - otherwise they risk being discontinued. This is a value-destroying practice for manufacturers, retailers and consumers, writes the Swiss Branded Goods Association in a press release.
Research & development, production, marketing and hundreds of thousands of francs in listing fees to retailers - a brand manufacturer in Switzerland invests a lot of money and time until a new product is on the shelves of retailers, the report continues. An enormous economic risk, especially as the biggest hurdle of all is still to come: 56% of the managing directors surveyed stated that they were given 7 to 12 months by their retail partners to be successful with their highly innovative new products, 11% even only 1 to 6 months. These would actually need 1 to 2 years (33% of respondents) or 2 to 3 years (27%) to be successful.
