Why Quality and Innovation Still Matter

By David Clark, New Business Development Manager, the Malco Design & Deliver Group

In today's economic climate, it's tempting to buy into the notion that price has become king, and that substance and quality no longer matter. But while low price and copy cat items may have their day, joining the crowd to make them is not a viable business model for companies that wish to enjoy stronger growth and superior margins than their competitors. When it comes to new product development, quality and innovation is still what matters.

There's an old adage that goes: "when people are free to do what they want... they usually imitate each other." In a marketplace crowded with imitators, true new product innovation can yield a competitive advantage. A product that solves a particular problem for your customer better than the competition will almost always financially outperform "me too" products.

It's a long-proven fact that consumers will pay more for a superior solution. If you don't believe it, just ask companies like Apple, Eddie Bauer, or Starbucks. In fact, there are very few markets where innovation is not possible, if you doubt it, just ask the table salt manufacturers about the growth of "sea salt". Innovation isn't always cheap, but sometimes you have to spend a little to make a lot. In most cases, you're better of spending more now to ensure you get what you need, rather than find out later you didn't spend enough.

And let's not forget about quality. Quality is a competitive advantage. It took Toyota decades to build their reputation for quality. Consumers were willing to pay more for a Toyota vehicle, even a used Toyota, because they knew it was designed to last. In light of recent events, they may be losing that competitive advantage.

Quality and innovation still matter.