Driving Innovation Through Co-Creation

Reshaping Digital Culture Series – Part 4

Gen Z doesn’t just want to buy products, they want to help create them. In fact, 83% say they’re more likely to buy from brands that give them that opportunity.  First movers that collaborate with consumers on product development instead of unilaterally pushing out what they think may work stand to benefit from less risk, supercharged advocacy, and a treasure trove of first-party data.

Risk Mitigation

Involving customers in product development minimize the risk associated with new launches. This is something startups like Kiki.world have built their entire business model around. Here, community members vote for their favorite ideas ensuring that the final product is a true reflection of their preferences and needs. 

Kiki’s first release was a unique, water-based, peel-off nail polish in clickable pen format called Pretty Nail Graffiti. Members voted on what colors the brand should launch with, and the rave reviews soon followed. The action of voting accrues loyalty points which translate into discounts. Kiki used AI to bring the formulations to market in 30 days, allowing them to quickly leverage the buzz built by the community. NFC chips embedded in the cap track usage and reward members accordingly with additional points over time.
 

Brand Loyalty  

Startups like Nide.co go one step further. Instead of just being rewarded with points for their ideas, members get paid. If their idea is selected for development for example, they earn 500 euros. If the idea is approved for lab testing they get paid 1500 euros, then 10% of the profits are paid out if the product goes to market. The result? Nide.co products have five thousand 5-star reviews and their community has grown to include +100k members.

This collaborative approach organically fuels advocacy in ways simply not possible when consumers don’t have a vested interest in the success of the product. To further deepen their values-driven connection to Gen Z, Nide.co only focuses on products that are natural, healthy, and contain as few allergens as possible. 

First Party Data

With the looming demise of the cookie, brands need to find alternate paths to relevant consumer data –– something Coachtopia delivers in spades. This community-powered circular sub-brand of Coach co-creates products and collaborates with its mostly Gen Z members comprised of fashion enthusiasts, creatives, entrepreneurs, journalists, activists and filmmakers. 

The first-party data generated from the community gives Coach insights into consumer preferences in a way that cookies never could. From materials, color ways, cultural influences and styles, Coach is building a clear understanding of what Gen Z loves and can apply those learnings across the business. The community also offers input into messaging and marketing, deepening data insights and boosting the likelihood of success as members feel a sense of collective ownership inspiring organic word of mouth.

Taking a demand-driven approach to marketing and product development is a way for future-focused brands to leverage technology and connect more deeply and authentically with young consumers. This shift is reinventing the dynamic of the brand/consumer relationship in ways that bring meaningful benefits to both sides. With Gen Z’s spending power expected to reach $33 trillion in the next eight years, brands that choose to dictate rather than co-create, risk seeing their market share deteriorate along with their relevance.