Innovating is vital for businesses to stay competitive in today’s world, where demand for new is constant.
In 2023, 76% of professionals said that their businesses plan to invest in innovation initiatives at least as much as they did the year before
Source: Euromonitor’s Voice of the Industry Survey 2023
In 2024, businesses have to innovate in pricing and value while reassessing consumer preferences to meet demand.
Innovating around value is at the forefront of business strategies
In today’s economy, unsurprisingly, innovating around price is at the centre of many companies’ strategies. As cost of production and, thus, retail prices are increasing, consumers are thinking twice about what they are willing to spend on. They increasingly look for budget-friendly options, and this consumer behaviour drives business innovation initiatives in 2024.
In Europe, companies in 2024 are focusing their innovation efforts primarily on value for money. The emphasis is on developing cost-effective solutions and optimising price points to cater to budget-conscious consumers, especially given the current economic climate.
Best value goes beyond budget-friendly positioning
While value is indeed the key in business innovation strategies in 2024, value for money does not necessarily equal affordability. Consumers seek the best value for their money, which can also mean added premium features or additional experiences.
In order to capture consumer attention and turn that into sales, brands are getting more and more creative with their value propositions – finding exciting partnerships to engage in, becoming more active on social/consumer-facing platforms, developing unique business models, and creating more offerings that appeal more specifically to the individual consumer.
Many businesses are experimenting with improving their value propositions and adding more value to their offers in 2024. But in order to do so, it is crucial for companies to understand their consumers first.
Optimising innovation strategies through in-depth consumer research
Companies put increased emphasis this year on fully understanding consumers. Over the past years, especially during the pandemic, when consumers’ life changed radically, businesses had to adjust their strategies to new habits and preferences overnight. Reacting quickly was priority, which, in many cases, resulted in companies losing sight of gradual changes in consumer attitudes. Now, taking a step back and re-evaluating how consumer preferences have shifted due to economic, geopolitical and other factors, is fundamental.
Companies are really delving into consumer research overall. They want to understand consumers’ daily lived experiences to capture white space opportunities, or better position their products or services to meet consumer needs and preferences more directly.
For example, we have seen companies, which used to launch different innovations fast across various markets previously, reimagine their innovation strategies in the past year. Now, they put a lot more thought and consumer insights behind the potential new innovations. Euromonitor helped them analyse what actually resonates with consumers, and how to launch products accordingly.
Understanding consumers serves as an inspiration for innovation.
When Euromonitor asked professionals about trends and innovation, 75% of respondents found consumer trend analysis an inspiring source for new product development
Source: Euromonitor IVoice of the Industry Survey 2023
How can your business stay ahead of disruption?
To stay relevant and ahead of the curve, businesses need to innovate around price and value in 2024 to cater to consumer demands. Companies should also re-evaluate what consumers are looking for to meet their preferences. Aligning with consumer needs is the factor professionals think influences innovation prioritisation the most, according to Euromonitor’s Voice of the Industry Survey 2023.
Download our report, Top Global Consumer Trends, to understand what consumers want in 2024. Use these insights to guide your investments, campaigns and growth plans. To learn more Innovation trends, visit our Innovation product page.