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In my last article, I described five trends in invention and licensing who will dominate this year. For independent product developers, the question of where to target your creativity is always important. Below I list my top 10 industries to consider designing for in 2021.
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Related: 5 invention and licensing trends that will dominate in 2021
1. Toy and game
The toy industry has embraced open innovation for many decades. According to Brian Chapman, president and head of global design and development at Hasbro, 50-60% of the company’s portfolio started as an idea from outside.
More recently, major toy companies like Hasbro have started inviting novice and amateur toy inventors to pitch their ideas. Why? Because this industry requires a constant supply of new and innovative ideas every year, just like fashion. Turnover is fast and furious.
During the first three quarters of 2020, U.S. toy sales increased 20%. No surprise: forced to stay at home, families have developed new habits, traditions and ways of entertaining themselves.
Bring your enthusiasm and your prototypes to the pitch!
2. Pet
Who doesn’t adore their dog or cat? Americans have continued to spend more on their furry friends every year since 1994. The American Pet Products Association estimated that people in the United States would spend nearly 100 billion dollars to take care of their pets in 2020.
The pet industry has worked with independent inventors for many years now, and I’ve seen many products licensed in this industry since the pandemic began. Prototypes are preferred. Intellectual property is not as important.
The president of a family pet business for over 65 years told me explicitly, “If we have a product that we think we can make and be first to market, we’ll go ahead and work on the royalty agreement even in the absence of a patent”.
3. Seen on TV
Also known as “direct response television”, this extremely fast-paced industry is known for marketing highly memorable hit products using video and calls to action. Today, ASOT companies not only market their products in late-night infomercials, they also use social media extensively. It’s a tough and tough industry, but you can find a gold mine with the right product at the right price.
In the past, ASOT companies were exclusively looking for products that appealed to the mass market and hit a narrow price range. This has changed. Today, as niche consumers can be targeted very specifically using social media advertising, this industry is looking for a wider range of products at different price points.
If your product idea has a demonstrable wow factor, this is a great industry to showcase it. A small improvement to an existing product will not suffice. They are looking for really new and innovative products, and prototypes are needed.
4. Kitchen/houseware
This industry has been licensing the ideas of inventors for many years now. If you have the next kitchen gadget, try reaching out to the companies looking for something brand new. There are also many kitchen companies looking for minor improvements to popular products that have been selling for years. You can use a sell sheet – a one-page advertisement highlighting the great benefit of your idea – to introduce these companies.
Be prepared to prototype if and when interested. Proof of concept is essential. The financial and health benefits of cooking at home mean that this industry never goes out of style.
Related: Inventors, here’s how to avoid getting scammed
5. Material
This is another industry that has flourished over the past year and will do so for the foreseeable future. Arguably, there’s never been a better time to submit your ideas to hardware companies, who have worked with independent inventors for many years. Make sure you file the IP and have your prototype ready.
6. Novelty gift
It’s always been one of my favorite industries for creating ideas, partly because the stakes are low. These companies are inventor-friendly and don’t need prototypes to get them started. In most cases, no IP is required, but it never hurts to confirm.
Here’s a pro tip: try to create something that will sell every day, not just a seasonal item.
7. Infant and juvenile
Historically, this industry has been difficult to break into, but I’ve seen more and more ideas get licensed in this particular industry. So get those creative juices flowing, moms and dads. I know you have problems with your children every day. Think about the types of products that would make your life easier, then create them.
8. Outdoors/gardening and barbecue
Gardening and other outdoor activities like barbecuing are booming. The fact that homeowners have invested in making their outdoor spaces more livable will continue to affect their behavior and spending habits in the future. These industries have always been very favorable to inventors.
Related: How do you know if you have a good idea? Try these 3 tests.
9. Home fitness
This industry is on fire. Most gyms are closed, but everyone needs to stay in shape. When there were only a few major players making large equipment for home use, this industry was not very receptive to independent inventors. But that is changing. Home fitness is no longer about bulky and expensive equipment, and the doors are opening accordingly.
10. Health and Beauty
This industry has a long history of working with external product developers. If you are considering approaching a big market leader, make sure you have filed the IP first, as this is usually required. Major market leaders have the resources and the incentive to enforce their IP portfolios. In this industry, proof of concept is very important.
Before you decide to submit any of your product ideas, do a thorough background check of the company on collaborating with inventors. Are they friendly to inventors? Check to make sure.
Keep in mind that medium-sized companies are more eager for new product ideas than big market leaders – they’ll get back to you faster and are more likely to appreciate your hard work. And, of course, before contacting a company, make sure you have filed the correct IP.
Related: Inventors, here’s how to license your idea and make money
