In recent years, the name of the game for consumer products companies was to rebuild and rejuvenate. An uncertain market demanded strategies that allowed for flexibility coupled with profitable growth.

What does 2012 require in terms of strategies in this industry? Consumer products are moving past rebuilding and rejuvenating – and I recommend one more “R” word: Reversing.

Specifically, I mean reverse innovation. The phrase itself sounds like a contradiction, but it’s of particular interest to consumer products companies, which generate innovations for their products perhaps more than any other industry.

Reverse innovation does not refer to going backward. It is the concept of innovating within emerging markets. Companies don’t traditionally look at these emerging markets for innovation. The norm is to innovate in the mature markets, and then allow these innovations to trickle down to emerging markets.

Consumer products companies can learn a lot by reversing this process and going to emerging markets to find innovations. Because of the way that this industry is growing and how more and more companies are moving into emerging markets, reverse innovation has an important place in keeping products fresh and encouraging new ideas.

A major part of the success of a consumer products company is the new product innovations it creates. In 2012, I expect that more consumer products companies will embrace reverse innovation along with the traditional process of innovation for their products.

What else can we expect from this industry in the next year? The experts at Tompkins collected the top strategies for companies in the consumer products industry in 2012, which you can read about here: Top Consumer Product Industry Trends for 2012.

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Jim Tompkins

Photo Credit: epSos.de