For Oddity's SpoiledChild brand, should we focus on developing new innovative products or expanding distribution channels for existing bestsellers?

Introduction

For Oddity's SpoiledChild brand, we're facing a critical trade-off between developing new innovative products or expanding distribution channels for existing bestsellers. This decision will significantly impact our growth strategy and market positioning. I'll analyze this trade-off by examining our current product portfolio, market dynamics, and potential outcomes of each approach.

Step 1

Clarifying Questions (3 minutes)

• Based on our current market position, I'm thinking we might be facing saturation with our bestsellers. Could you share our market share and growth rate for existing products over the past year?

Why it matters: Helps determine if we've maxed out our current product potential Expected answer: Slowing growth rate in core markets Impact on approach: Would lean towards innovation if growth is stagnating

• Considering our brand identity, I'm curious about our innovation pipeline. How many new product concepts are currently in development, and at what stages?

Why it matters: Assesses our readiness for a product-focused strategy Expected answer: Several concepts in early stages, few near launch Impact on approach: Would influence timeline and resource allocation for innovation

• Looking at our distribution strategy, I'm wondering about our current channel mix. What percentage of sales comes from each major channel, and where do we see the most growth potential?

Why it matters: Identifies untapped distribution opportunities Expected answer: Heavy reliance on e-commerce, potential in retail partnerships Impact on approach: Could prioritize channel expansion if significant untapped potential exists

• Regarding our target audience, I'm thinking about potential market expansion. Are there any underserved segments or emerging demographics we're not currently reaching?

Why it matters: Reveals opportunities for both product innovation and distribution Expected answer: Growing interest from Gen Z and male consumers Impact on approach: Might suggest a hybrid strategy targeting new segments with both products and channels

• Considering resource constraints, I'm curious about our current team structure. How are our product development and sales teams resourced, and where do we have the most flexibility to scale?

Why it matters: Determines our capacity to execute on either strategy Expected answer: Strong product team, developing sales capabilities Impact on approach: Could influence which strategy is more feasible in the short term