The consumer goods industries include food and beverage, apparel and footwear, nonfood consumer packaged goods, consumer durable goods and consumer electronics, which occupy a large portion of consumer expenditure, but they are not as profitable as they seem.
Developing successful consumer goods require the same process as other products: information collecting, market analysis, research and development, and post launch management. Therefore, different challenges may occur at each step. One specialty of consumer goods is that it does not depend on R&D as much as the electronic products. In other words, although consumer goods occupy the most shelf space, they are not so different in function, they may just have little different in appearance and quality. However, most consumer goods company indicated that they had little difficulty generating product ideas, less than 20 percent of those ideas resulted in products considered to be highly innovative. I doubt that it is because most of the new ideas of new product just have some tiny detail based on the existing products. On the other hand, consumer goods usually does not emphasize so much on R&D, thus as a real innovative idea comes up, the company’s current technology is not enough to support it.
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