7 Reasons Why New Products Fail

Over 90% of new products brought to the market fail in one way or another. A great way to avoid having your product fail is to know the common reasons why products fail. Always remember it takes time for new products to thrive and that they require constant upgrades and improvements. Here are some common ways that new products fail when introduced to the global market place: 

1. Ignoring the Needs of Your Customer: Your customers are what will keep your business afloat which is why you need to listen to their feedback. In the world we live in today it is easier than ever to see what your customers think. Ignoring what the customer needs is the number one way to have a new product fail. If your social media comment feeds are filled with criticism of a certain feature of your product then it’s time to change that feature. The best way to run a successful business and launch a new product is to put the customer’s needs as your top priority.  

2. Insufficient Market Attractiveness: Your product needs to be able to gather consumer appeal. It needs to have room for growth and a high potential to earn profit. There are many times when a new product is launched in a market that is either too small or has far too much competition. Without consumer appeal it will be impossible to generate a profit.

3. Limited Access to Buyers: You must ensure that you are able to distribute your product in a way that makes it easy for consumers to obtain. If you’re not able to properly reach your target market, then it’ll be impossible to be successful. Products generally need a retailer to list and display them within a store. Products may test well and be a hit with consumer but will then go on to fail because of limited distribution channels. Ensure that your product is in as many stores as humanly possible. Luckily these days with the internet it’s easier than ever to reach your target market directly through online stores. However, there are still a lot of people in the world who strictly shop at brick and mortar stores. It’s still very important to find retailers who are willing to house your product in their stores.

4. Bad Timing: Sometimes products suffer horrible losses simply due to bad timing. Bad timing can happen for multiple reasons and very randomly too. Tesla struggled during our last recession because nobody had extra money to spend on a luxury electric car. People who created fidget spinners too late after they weren’t considered cool anymore now have excess inventory. Getting into the air travel industry wasn’t so great directly after the horrific September 11thterrorist attacks in New York. All of these are very different reasons, but all happened for one simple reason which is bad timing. 

5. Lack of Marketing Efforts: Companies often launch great products but don’t have the right marketing strategy to reach their target market. You have to know your target market and what kind of content they consume. If you’re target market is 16-22-year olds, then you probably don’t want to waste your budget on newspaper ads. Also, if your target market is 65-year-old seniors then buying up ads on snapchat isn’t the best idea. Know where your target market is and reach them there.

6. Insignificant Features: Remember a few years when everybody thought that 3-D televisions would be the next big thing? I do yet for some reason 3-D TV’s have had quite disappointing sales. This is more than likely because of features that people just don’t really have use for. People don’t want to have to wear a fancy $100 pair of glasses to be able to watch TV. There is also the giant problem that there are very small amounts of programs available in 3-D. If you’re going to launch a new product then you must ensure that it is features that are easy to use and significant to a person’s life.

7. An Unclear Definition of a Product: In order to successfully sell a product people must be able to understand exactly what that product does. It’s impossible to sell a product if people don’t know what your product does. Make sure your product description is clear and concise. Use your marketing strategy to ensure that the product is properly displayed and explained.

These are 7 of the most common reasons that new products fail. If you manage to steer clear of these 7 problems, then you should be selling a profitable product in no time!