May 9, 2025 /Mpelembe Media/ — According to research featured in MIT Sloan Management Review, launching new products during an economic downturn can be a strategic advantage. The study found that products introduced during recessions often achieve better sales, market share, and longevity than those launched during prosperous times. This is attributed to reduced market competition and improved bargaining power with supply chain partners. The authors suggest that careful timing, informed by economic indicators, and attention to customers and competitors are crucial for success. Additionally, a recession launch can signal company resilience, enhancing reputation and stakeholder confidence.
Launching a product during an economic downturn, or recession, can offer several strategic advantages for companies, according to research discussed in the MIT Sloan Management Review.
Key strategic advantages include:
Higher Sales and Market Share: On average, new products introduced during a recession tend to achieve higher sales and market share compared to those launched during periods of economic growth (“boom times”).
Increased Longevity: These products also tend to remain on the market for a longer duration. For example, new automotive products launched during a recession stayed on the market 19% longer, and fast-moving consumer goods remained 14% longer.
Reduced Market Clutter and Noise: During a recession, many businesses often reduce spending, particularly on advertising. This results in a market that is less cluttered and less noisy, providing greater visibility for new product introductions.
Reduced Competition: Companies introducing new products benefit from less competition.
Stronger Bargaining Power: Companies can gain stronger bargaining power with both their upstream and downstream supply chain partners.
More Favourable Deals: This stronger bargaining power allows companies to secure better deals on materials, access more favourable advertising opportunities, and even obtain cheaper shelf space from retailers.
Enhanced Reputation and Stakeholder Confidence: Launching a product during a recession can serve as a powerful signal to stakeholders, demonstrating the company’s resilience. This can enhance the company’s reputation, presenting it as a strong, well-positioned player in the market and boosting confidence and trust in its long-term prospects.
These advantages stem from underlying dynamics present in recessions that companies can leverage. Skillfully navigating these opportunities requires leaders to pay close attention to customers, competitors, and their own company. Timing is also considered important, with launching later in a recession potentially being better than earlier.
Based on the sources provided, the research on launching products during a recession specifically highlights findings related to two types of goods:
Automotive
Fast-moving consumer goods
The research indicates that new products launched during a recession in these categories tend to remain on the market for a longer duration compared to those launched during economic growth periods. Specifically, new automotive products stayed on the market 19% longer, and fast-moving consumer goods remained 14% longer.
Based on the information in the sources, the research discussed in the MIT Sloan Management Review article, “When Launching a Product During a Recession Pays Off,” was coauthored by:
Steven H. Seggie, an associate professor of marketing at ESSEC Business School in Paris.
Koen Pauwels, associate dean and a distinguished professor of marketing at the D’Amore-McKim School of Business at Northeastern University.
Berk Talay, professor of marketing at the Manning School of Business at the University of Massachusetts Lowell.
Based on the information in the sources, Steven H. Seggie is an associate professor of marketing at ESSEC Business School in Paris. He is also the academic director of ESSEC’s Weekend Executive MBA and Hybrid Executive MBA programs.
The MIT Sloan Management Review article titled “When Launching a Product During a Recession Pays Off,” which discusses the research on this topic, published on April 29, 2025.
The news release announcing this research is also dated April 29, 2025.