An average cycle of research and development takes up 22 months on average. However, firms that make use of the best strategy to standardize and mechanize the process while clearly setting priorities, this process could be shortened with 15 months. This is concluded from an analysis of 34 manufacturers of consumer products by the consulting firm Boston Consulting Group.
According to consultants the fashion branch succeeds at bringing the newest trends on the market the fastest. Fashion chain Zara is a best practice: “The Spanish chain in many cases succeeds to bring new lines on the market within barely two weeks. This compared to the accepted period of ten months” say advisors at BCG. “Some firms from other branches have to take into account a timeline of thirty months, especially in the more regulated branches like tobacco and alcohol where launching a new product usually takes more time” consultants add.
BCG also notices that during renovation or formatting of existing products a similar tendency is observed. “Speed champions managed launching a renewed product on the market within less than five months”. “Also with discounts and promotions, periods can vary from one to seven months. The fastest players also gain 1,6 percent of turnover from innovations. This against an average of 1 percent.”