It's no secret that launching a new product is a risky proposition. Despite the best planning and execution, there's always a chance that the product will fail to find traction with consumers. In fact, industry experts estimate that the failure rate for new products is somewhere between 25 and 45 percent. There are many factors that can contribute to a product's success or failure, but one of the most important is timing. Launching a product too early or too late can be fatal. For example, a product that is ahead of its time may be ahead of the market's needs and fail to gain traction. On the other hand, a product that is launched too late may miss the window of opportunity and be crowded out by competing products. Understanding the market and timing the launch correctly is essential to increasing the chances of success.
Despite the high failure rate, businesses continue to launch new products because the potential rewards are so great. When a new product is successful, it can create a whole new revenue stream and help to solidify a company's position in the marketplace. For these reasons, businesses will continue to take risks and hope for the best.