The Christmas season is over and the reports from retailers are in. It sucked! Many blame the rescission. I am sure that was a major impact. But in previous rescission items that were truly innovative, regardless of the economic outlook, tempted consumers to buy.Â Truly innovative products such as flat-screen TVs and smartphones tempted consumers in recent years. But this year the greatest innovation was the $8 Zhu Zhu robotic pet hamster.
At many companies, quick turn and product extensions replaced more costly, though more rewarding, investments in revolutionary inventions. Let’s face it most of the recent innovations such as Hummer SUV and collectivized debt obligations (CDOs) were not, well innovative. They were simply the same ideas and products with a new coat of paint.
Research and Development budgets have been slashed in favor of sucking what life still exists out of current markets. This is the classic short-term thinking thatÂ put us in this rescission. When we come out of this rescission (which we will) the next will be caused by lacking competitive products.