Blog: The risk of following hypes

Chasing Trends in a Slow Innovation Environment

In the fast-paced world of technology and business, the pressure to stay ahead of the curve is immense. Companies are often tempted to jump on the bandwagon of the latest trends and hypes, hoping to capture a slice of the new market or to appear innovative to stakeholders. However, when an organization’s speed of innovation is inherently slow, attempting to follow these hypes can be fraught with risks.

The Mirage of Quick Success

Trends and hypes often create an illusion of quick success. They promise a fast track to market dominance or a surge in stock prices. But for companies that cannot match the pace of these trends, this pursuit can lead to misallocated resources, half-baked products, and ultimately, a tarnished reputation. The allure of immediate gains can blindside them to the long-term strategic planning necessary for sustainable growth. When innovation speed is slow, there is a significant risk of a mismatch between a company’s capabilities and the demands of a rapidly evolving market. By the time a slow-moving company catches up to a trend, the market may have already moved on to the next big thing. This lag can result in products that are outdated upon release, making it difficult to compete with more agile competitors.

The Cost of Incomplete Innovation

In their rush to follow hypes, companies may cut corners in product development, leading to incomplete or subpar innovations. This not only affects the product’s performance but can also harm the company’s image. Customers remember the failures, and in a world where social media amplifies every misstep, the cost of incomplete innovation can be devastating. Chasing trends can lead to strategic misalignment within an organization. When the focus shifts to keeping up with hypes, it can detract from the core competencies and unique value propositions that define a company’s success. This misalignment can confuse customers and employees alike, diluting the brand and weakening the company’s position in the market.

The Innovation Paradox

Interestingly, the very act of chasing trends can stifle true innovation. When companies are preoccupied with following hypes, they may overlook opportunities for genuine innovation that aligns with their strengths and market needs. This paradox can trap companies in a cycle of reactive development rather than proactive innovation.

What do you think about this example?

Heinz is a key player in tomato sauce. It is said that they invented the ketchup recipe. However the company keeps reinventing its product. In this ocassion, they decided to start a project together with Mattel. Barbie movie was a super hit in 2023 obtaining more that 303 million euros. However the hype dropped and the movie with the most impactful marketing campaign did not perform well in the "Oscars". Heinz decided to take advantage from this hype to create a new sauce inspired in Barbie "Barbiecue". The time to market for product innovation in big companies is about 9-12-18 months depending on the product category. So, when Heinz was ready to launch the product, Barbie´s hype was going down.

Conclusion

While it’s important to stay current and responsive to market changes, companies must weigh the risks of following hypes against their ability to innovate effectively. A slow innovation speed requires a thoughtful approach that prioritizes strategic alignment, sustainable growth, and genuine innovation over the fleeting allure of trends. By focusing on their unique strengths and market fit, companies can navigate the hype cycle with wisdom and emerge stronger in the long run.