NEW YORK — In the current business environment, incremental growth generated by marketing or research and development can no longer create and sustain success, suggested a new report published Tuesday by PwC. As a result, business leaders have realized the clear need for crafting an effective innovation strategy.
According to PwC’s new report, “Retail & Consumer Insights: Achieving breakthrough innovation for future growth,” 93% of retailers and CPG companies consider breakthrough innovation to be their major source of growth, and increasingly necessary to ultimately boost profitability.
PwC’s survey revealed a direct correlation between innovation and revenue growth, as innovative companies grow at a 16% faster rate than less innovative companies. Retail and consumer companies, specifically, are faced with the challenge to differentiate on the overall consumer experience, creating a stronger brand relationship to generate greater growth and boost revenue.
"While companies have historically focused on operations, retailers and CPG companies that establish a culture that values innovation will be the most successful," PwC analysts stated. "Consequently, growth fueled by innovation is now a major component of corporate strategy, equal in importance to operational excellence."