Selling the "New!"

There was an interesting piece in the March 14, 2009 New York Times entitled: "A Strategy When Times Are Tough: ‘It’s New!’’ The author, Stuart Elliott, makes the point that: “In tough times, it would seem the flow of new products would be slowed by companies fearing that shoppers have too much on their minds to consider still another cereal, soap or soup. But as the recession grinds on, Madison Avenue is serving up a steady stream of new packaged foods, cars, drugs (prescription and otherwise), menu items (for both sit-down and fast-food restaurants) and beverages (alcoholic and otherwise).”

The article referenced a company named SheSpeaks which among other things polls its universe of women to find out what they are thinking. According to the article: “Members of SheSpeaks were recently polled on their attitudes about trying new products in light of the economic downturn… Of the respondents, 44.4 percent said they were more likely to try them and 42.3 percent said they were equally likely. Only 13.3 percent of the respondents said the economy made them less likely to try new products because “this is not a time to experiment.”

As I read this, I was struck by the toy industry’s apparent shift away from “new” this year. Conversations with retailers at the Nuremberg and New York Toy Fairs reflected a disappointment that toy manufacturers had backed away from innovation. It’s important to remember that there is opportunity in times of economic disruption. Those who are innovating may find themselves out in front of those who decided to take this year off from the “new.”