R & D is a long-term, high-risk investments. As we average duration of each development is 2-3 years. Of course, from an investment perspective, high-risk and high return is also co-exist. “Technological innovation has been in the forefront in the United States, Leviton electronics, the Director of Business Development of Shenzhen Co., Ltd. has Chunhui in the phrase revealed the electric company for technical innovation dilemma: on one side is the long development time, risk high, while a high return.
The “two benefit options, whichever weight, the right to utilize the better of two evils.” On the electrical enterprises, strengthening R & D to improve their core competitiveness, a firm market tool. The wish of every business is through technological innovation, extend the product line to better seize the market. The new product can be acceptable to consumers, quickly covering electrical market? In addition to technology, it can give companies, distributors and even the electric market to what?
Question 1: Does the new product can be accepted by the market?
As the saying goes, the Yangtze River superseding the old, dead on the beach before the waves. Although this is a joke, but vividly describe the law of the jungle areas of technology, progress, progress at firms will certainly be eliminated, then innovative firms are not able to access the market will surely reward?
According to our survey data shows that nearly 80% of the electrical consumers interested in new products, of which nearly half of the electrical consumers say they are more concerned about the price of new products. Our electrical business from a sample survey, the new product prices generally higher than 10% of the original product.
“As the number of electrical brand, market competition, while the restrictions by local consumption, some new types of electrical products if the price is too high, consumers can easily result in the loss.” Hao Italian electrical industry in Henan Kang, General Manager of Operations Center Road . He disclosed, they are generally about six months will launch new products. However, compared with the old products, new product sales profit fell 5%.
“In terms of consumer spending habits, consumers are still part of the more reliable the old electrical products. Their interest in the new products and old products do not. After all, they used the old products, it is assured! The same time, their new product quality, safety, and so inevitably there will be skepticism. “Shenzhen is up to electrical firm Zhengjing Li’s remarks revealed the new products to market in an embarrassing encounter.
Can be obvious, the market is cruel, and have new technology on the one hand, can bring leading-edge technology into a leading market is more important to another topic. Natural selection, survival of the fittest. Transformation to a market in the technology on this matter, because of their technology, and product manufacturers to promote their own performance and other means of difference, the result will vary.