Brands are faced with many challenges in today’s landscape, from tough competition to supply chain interruptions to elevated consumer demands and more. One common theme we hear from our brand partners, no matter their industry, is a focus on innovation. But, despite innovation being a clear differentiator for brands looking maintain success, innovation is often overlooked or underprioritized as businesses work towards growth. This is what we have come to recognize as the “innovation disconnect.”
In a 2023 McKinsey survey of more than 1000 executives, two-thirds stated that their companies’ current business models would not be economically viable by 2025, and identified innovation as a potential solution. The same survey found that organizations who view innovation as a core value, or those that are ahead of the curve in utilizing technology, are more likely to succeed and outperform against competitors.
We see this positive sentiment regarding the impacts of innovation echoed throughout market research:
There are many reasons why innovation is so important to sustained business growth, from ensuring the necessary adaptability to overcome unexpected challenges, to helping brands stand out in an over-saturated marketplace. Data suggests that companies who invest in disruptive technologies can expect to see a 10% bump in revenues and may even improve their gross margins by over 21%. Yet, only 6% of CEOs report that they are satisfied with their innovation performance.
Understanding the barriers to innovation is crucial for addressing the innovation disconnect. Potential roadblocks include:
While these concerns have merit, it’s estimated that 62% of companies plan to prioritize innovation, recognizing that the potential rewards are worth the risks. In doing so, it is important to approach the innovation disconnect with a strategic approach.
Addressing the disconnect requires brands to adopt a culture of innovation. A 2022 McKinsey report estimated that companies who do so are 3.5 times more likely to outperform their counterparts who do not. Brands can begin by:
Top–performing companies are ramping up their strategic partnerships to develop new products and expand their offerings, allowing them to innovate faster than would be possible without external support. In fact, nearly half of top economic performers initiated a new partnership in 2020-2021.
Wellness continues to be a top priority among consumers. The global wellness industry is predicted to reach $8.5 trillion by 2025. Brands seeking to capitalize on these trends can leverage partnerships with wellness innovators to offer products that do more for their customers, providing physiological benefits on top of basic function.
CELLIANT® infrared technology can transform any textile product into a wellness product, and is a key ingredient in products from leading brands in industries spanning apparel, sports and outdoor, bedding, health and wellness, hospitality, transportation and more. CELLIANT offers brands science-backed, rigorously tested wellness technology that is adaptable and scalable to meet a range of product development needs. A brand partnership with CELLIANT can offset the need for research and development while empowering brands to re-invent their product hierarchies. Below are a few ways that CELLIANT has helped partners grow and succeed:
If you are interested in exploring innovation opportunities and want to learn if CELLIANT is a fit for your brand, fill out the form below to set up a meeting with a member of our team.
Five Reasons Why Innovation Decisions Succeed 2.5X More Often At Top Companies, Forbes, 2023.
62% of Companies Have More Ambitious Innovation Plans, Despite Economic Uncertainty, Wellspring, 2022.
Innovation Is a Top Priority for Business, Chief Executive.
The Global Wellness Economy Reaches a Record $5.6 Trillion—And It’s Forecast to Hit $8.5 Trillion by 2027, Global Wellness Institute, 2023.
Innovation advantage, McKinsey & Company, 2024.
Innovation In Business Statistics: Latest Data & Summary, WifiTalents, 2024.
Five Ways Leaders Can Foster Innovation, Forbes, 2024.
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