Sephora’s Open Innovation Approach to New Products

July 7, 2017 By IdeaConnection

The internet has redefined the relationship between businesses and customers.  Many firms are now turning to their audience for help and insights from the very beginning of the product development process.

One of the latest companies to do this is the prominent retailer Sephora. 

This popular chain of cosmetics stores has teamed up with Volition (a company that uses the power of the crowd to create products, with users voting for those they want to see created), and will host its site on its homepage.  This will provide Sephora with an opportunity to gain key consumer insights into product development decisions.

How Brilliant Products Can Emerge with Consumer Insights

There are many reasons why using open innovation in this way makes smart business sense:

  • Loyal customers are not random consumers, they are consumer experts in the products they buy and are often tuned into trends in the market. They have their ears to the ground.
  • Consumers bring external perspectives.
  • Companies can fine-tune their new products by soliciting consumer input at various development stages, rather than wait for feedback after a new product has been designed and launched.
  • Fine-tuning can save businesses a lot of money in development costs. Products are released onto the market that they know their consumers want. This also minimizes risk, reducing the chances of launching a flop.
  • It generates brand loyalty. Customers feel they have a stake in a new product’s success.
  • Consumers help to get the word out early about a new product by talking about it with their friends on social media platforms.

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Reader Comments

nice keep it up
Posted by Sana Khan on October 6, 2017
Along the same lines I watched a program some weeks back that profiled a new batch of innovation disruptors. They weren't bothered about coming up with new ideas, only taking old designs and improving them...

Quite literally NOT re-inventing the wheel. One guest claimed to have cleared 7 figures with a re-designed version of those weights gym-types use on their ankles and wrists.

I guess this displays an open attitude to design at least.
Posted by Henry Morgan on July 20, 2017

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