The Stick or Twist Dilemma
Katie Irving I 9-26-24
Why Sticking to What Works Could Be Your Brand’s Biggest Risk
If you run a company that sells products, at some point this year, your leadership team has discussed whether to invest in innovation or double down on your ‘greatest hits’. With consumer behavior becoming increasingly unpredictable, a shaky economy, and job market uncertainty; along with a looming, history-making presidential election in the US, brands are hedging their bets.
As an expert in brand and product innovation for over 20 years, here's my take:
In times of uncertainty, sticking with what worked in the past is the worst decision a brand can make.
And, that’s not just an objective opinion. There’s a lot of data to support the fact that, as industry disruption increases, ‘business as usual’ is riskier than innovating.
Let’s start by acknowledging that ‘innovation’ as a concept is overused and misunderstood. For this article, innovation refers to totally new ways of thinking and working, category disruptors, and revolutionary brands that choose to create the future instead of sticking to the safety of the past.
Currently, retail news is filled with stories of brands that did not choose this path:
Over the past 5 years, one of Nike’s missteps has been focusing too much on reissuing archive styles instead of introducing new sneaker technology. While Nike flooded the market with reissues of Dunks and Air Force 1s, their competitors introduced tech like On's CloudTec and Hoka's range of technologies that appeal to a broader market.
Nike doubled down on reissues of classic styles while its competitors disrupted the market with comfort and performance innovation.
Several of VF Corp's brands have faced challenges evolving their product lines, with Vans experiencing a 21% decline in sales and Timberland seeing a 6% decrease in Q2 2024. Each of these brands operates in highly competitive markets, yet they have relied too heavily on archive styles. One indication of this is Van’s decision to close down its Vault program to launch OTW, a premium sneaker concept (and a step in the right direction).
Vans phased out its Vault program (left) in favor of its premium sneaker line OTW (right).
Before we explore the upside of investing in new ideas, let’s do a quick credentials check.
Through MOONSHOT, a Concept and Innovation Studio, I deliver growth for brands by driving product evolution and finding whitespace in crowded markets. From launching gender-inclusive clothing to developing the most comfortable and durable children's wear in the market, I have a front-row seat to the growth that awaits brands that invest in this work.
As a member of THE BOARD - a vetted community of C-Suite talent from the worlds of fashion, beauty, and tech, I’ve partnered with the industry’s best talent to help brands invest in new ideas as a way to future-proof their business.
Investing in innovation can mean many different things, so let’s get specific. For brands that create products, the types of transformation catalysts you should be exploring are:
Consumer Lifestyle and End-Use: This is where I've discovered the biggest opportunities for brands over the years. As consumer lifestyles continue to change rapidly, so do their product needs.
Materials and Construction: One of the best ways to future-proof an assortment is to improve materials (softer, stronger, more durable, etc.) and construction (better functionality, efficiency, comfort).
Category Disruption: Whether it’s creating an entirely new product/category or disrupting an existing one, nothing creates growth and recognition faster than a brand that creates a product that truly disrupts a category
Culture creators: Instead of following and reacting to culture, the most disruptive brands actively create culture by offering great products that meet deep consumer needs.
Looking at this list, it’s easy to think that “innovation” belongs only to certain categories, ie. the activewear and performance brands of the world. However, the truth is that it’s critical for most brands. Here are a few examples of brands that have made great products their north star:
SKIMS: Recently valued at $4 billion and winner of the CFDA’s Innovation Award in 2022, SKIMS has disrupted the shapewear category for a new generation of customers. Their commitment to reinventing construction delivers a steady stream of first-to-market products. Who knew shapewear could be such a versatile category? Skims did.
Carharrt: With annual sales now surpassing $1 billion, Carharrt is a prime example of a brand that respects its heritage while continuously iterating on its classic styles to "build durable workwear for the hardest working people on Earth," while appealing to its much broader customer base.
H&M: A central part of the plan to re-energize growth and set itself apart from Shein and Temu, H&M’s recent pivot from fast fashion to a mid-tier brand by focusing on design and quality is a masterclass in evolving to stay relevant in an unpredictable market.
Uniqlo: Clare Waight Keller's appointment as Uniqlo’s new Creative Director follows the success of her previous collaborations with the brand. It signals Uniqlo's investment in Design (with a capital D) in addition to the cult basics they've long been known for - a smart pivot at a time when aspirational luxury consumers are looking for budget-friendly options.
SKIMS / Carharrt / H&M / Uniqlo
Betting on newness may seem risky when your brand needs a guaranteed way to grow. A true innovation expert knows that using market intelligence, consumer insights, research, brand data, and analysis can help avoid most missteps. This is a highly data-driven process that is equal parts analytical and highly creative. When brands invest in this work, the result is pure upside, leading to massive ROI.
Ready to get started? THE BOARD is a vetted community of C-Suite talent from worlds of Fashion, Beauty, Tech and more. Whether your brand needs a 'Dream Team' to create a data-driven roadmap for what's next or an on-call advisor to provide objective feedback on your strategy, THE BOARD has you covered.
Katie Irving is a Founding Member of THE BOARD and the founder of MOONSHOT, a Concept and Innovation Studio that connects the dots between Consumer, Culture, and Trend to build industry-leading product assortments.
