Exploring Innovation as a Strategy to Excel in the Household Goods Industry

This slide deck presents strategic insights from the white paper "Exploring Innovation as a Strategy to Excel in the Household Goods Industry." It covers the ongoing impact of the COVID-19 pandemic on consumer behavior, economic challenges, and the crucial role of innovation in product development, technology integration, sustainability, and e-commerce. By leveraging external product innovators and third-party administrators, companies can identify market gaps, shorten development cycles, and meet evolving consumer needs to gain a competitive edge.

1. Exploring Innovation as a Strategy to Excel in the Household Goods Industry WHITE PAPER Russell Williams Founder & President [email protected]

2. Introduction Key Points : COVID-19 continues to impact the household goods industry Consumer spending habits are shifting due to inflation and recession fears The importance of agility for companies to thrive in the new economy

3. Ongoing Influence of the Pandemic Statistics from a 2023 study by HomePage News ( Bily , 2024) : 54% of consumers eating at home more often 35% planning to entertain at home more frequently Strong plans for home-based celebrations despite economic challenges Opportunity : Growth potential in home improvements and entertainment products as a result of these trends “Household sector innovation is becoming a pervasive phenomenon, representing a significant share of the innovation activity in any economy. ” (De Jong et al., 2021)

4. Economic Challenges Facing Consumers Current Challenges for the Household Goods Industry : Affordability: Keeping prices low without compromising quality Durability: Emphasizing long-term value Multi-purpose Products: Providing better value for money Strategy : Adapt to changing consumer demands to boost loyalty and profitability “If you’re competitor-focused, you have to wait until there is a competitor doing something. Being Customer-focused allows you to be more pioneering.” - Jeff Bezos , Founder of Amazon

5. Innovation as a Competitive Advantage Importance of Innovation : Essential for maintaining a competitive edge Risk of obsolescence for companies that don't innovate Areas for Opportunities : Product Development: Innovative features and design Technology Integration: Smart technology and IoT Sustainability: Eco-friendly products E-commerce: Enhancing the online shopping experience “The value of an idea lies in the using of it.” -Thomas Edison, Inventor (1847-1931)   Photo by Engin Akyurt from Pexels : https://www.pexels.com/photo/green-leafed-plant-on-sand-1438404/

6. Product Development Opportunities Considerations: Using Consumer Innovation as a Resource : Consumer innovators spend billions annually on novel products Potential for companies to tap into this source of innovation Statistics : Household sector innovation constitutes a major share of economic innovation activity "Indeed, it has been shown that many of the most important products sold by producers were first developed by consumers" (de Jong et al., 2021). Photo by Karolina Grabowska: https://www.pexels.com/photo/think-outside-of-the-box-6375/

7. Technology Integration Smart Homes Market : Market size estimated at USD 120.10 billion in 2024 Expected to reach USD 370.95 billion by 2029 (CAGR of 25.30%) Implications : Significant opportunity for tech-savvy home solutions

8. Sustainability Consumer Demand : Increasing consumer preference for environmentally friendly products Exponential growth in sales of sustainable products Opportunity : Companies can lead by embracing sustainability in product development “ A 2020 McKinsey US consumer sentiment survey stated that more than 60 percent of respondents said they ’ d pay more for a product with sustainable packaging ” (McKinsey & Company, 2023).

9. Influence of E-commerce Consumer Behavior : Increase in online purchases of household supplies, appliances, and furnishings Reduced brand loyalty, presenting an opportunity for new brands Strategy : Streamline the online shopping experience to attract and retain customers

10. Winning with External Product Innovators Advantages : Identifying Market Gaps: Quick identification of emerging product demands Shortening Development Cycles: Streamlined product development and faster time to market Role of Third Party Administrators ( TPAs ): (i.e., MarketBlast.com) Streamlining Engagement: Simplifying collaboration with external innovators Identifying Innovations: Closer connection to consumer trends Connecting Innovators and Companies: Facilitating timely development and market introduction

11. Recommendations and Next Steps Strategies for Success : Partner with independent innovators Leverage third-party administrators Focus on affordable, durable, and versatile products Conclusion : Embrace innovation to gain a competitive edge Collaborate with external innovators to navigate the current market landscape Thrive in the household goods industry by meeting the demands of the modern consumer “The riskiest thing we can do is just maintain the status quo.“ -Bob Iger, Media executive & businessman

12. View White Paper https://marketblast.com/files/white_paper_leveraging_consumer_innovators.pdf

13. References Bily , M. (2024, June 7). Home . HomePage News. https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/the-great-consumer-shift-ten-charts-that-show-how-us-shopping-behavior-is-changing Consumer Outlook Report | HomePage News De Jong, J. P., Ben-Menahem, S. M., Franke, N., Füller , J., & Von Krogh, G. (2021). Treading New Ground in Household Sector Innovation Research: Scope, Emergence, Business Implications, and Diffusion. Research Policy. https://doi.org/10.1016/j.respol.2021.104270 Gassmann, O., Enkel , E., & Chesbrough, H. (2010). The future of open innovation. R&D Management , 40 (3), 213-221. https://doi.org/10.1111/j.1467-9310.2010.00605.x McKinsey & Company (2023, February 6). Consumers care about sustainability—And back it up with their wallets . Retrieved June 10, 2024, from https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/consumers-care-about-sustainability-and-back-it-up-with-their-wallets#/ McKinsey & Company (2023, February 6). The great consumer shift: Ten charts that show how US shopping behavior is changing | McKinsey. Retrieved June 10, 2024, from https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/the-great-consumer-shift-ten-charts-that-show-how-us-shopping-behavior-is-changing Sichel , D. (2021). Household Innovation and R&D: Bigger than You Think. Review of Income and Wealth , 67 (3), 639-658. https://doi.org/10.1111/roiw.1247 Smart Home Market - Share, Size, Trends & Share by Company. https://www.mordorintelligence.com/industry-reports/global-smart-homes-market-industry