The assortment innovation rate represents the portion of the product portfolio that became active over your analysis period.
Innovation rate = Innovation in number of GTINs / Width of the assortment in number of GTINs
For a market made up of 2,000 products:
- 1,600 products have sales in your analysis period, these 1,600 products represent the breadth of the assortment.
- 400 products had sales in your analysis period, but were not sold in the same period the previous year, these 400 products represent the innovation of the assortment.
Innovation rate = 25% = (400 / 1,600)
The range innovation rate indicator can be translated into English as "Innovation rate" or IPA Rate.
The innovation rate of the product assortment can also be studied in sales value or volume, to measure the weight of new products in sales.
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