According to the researchers, product renovation and innovation help businesses evolve categories and grow markets. However, disruption is “transformative”, creating an entirely new product or category.
According to Euromonitor, for a company to disrupt, they must focus on four areas: reconceptualising the market; consumer-centricity; engagement; and leading “fearlessly”.
Euromonitor notes that these strategies play to the strengths of small, nimble brands that are not tied down by layers of bureaucracy.
“True disruptors are not focused on short-term gains. More importantly, they don’t worry about immediate profitability; they are willing to focus on the long-term opportunity,” the researchers stated.
This is an important topic for large food brands, who are losing market share to smaller challenger brands. According to annual figures produced by Boston Consulting group and IRI, in 2017 the revenues of large CPG companies remained roughly flat (+0.2%) while small companies grew by approximately 2.3%, indicating that they are growing market share.
Can big brands cut the bureaucracy and re-think innovation – taking a risk to truly disrupt outside of the core?