Dyson’s newest innovation: an Ultra-powerful $400 hairdryer

Dyson is often held up as an example of an innovation leader, especially when representing Great Britain. His original vacuum cleaner allegedly went through 5,000 prototype versions before finally being released. And this new product keeps that tradition going, having taken approximately four years and $71 million to develop.

And as you can see in the video above, the product is over-engineered compared to cheaper competitors, so should stand up to abuse.

So does it make sense to spend $71 million to develop a product which will undoubtedly lead to an influx of cheaper, copycat competitors? Dyson’s view of innovation suggests yes.

According to a breakdown of their financials for 2015 in the Guardian, the company spends around £3m a week on Research and Development. Specifically, it’s £113m annually, up £80m from the previous year, with a total revenue of £1.38 billion.

The design evolution of the Supersonic Hair Dryer through prototypes

And for Dyson, this level of investment makes sense because it is one of the defining aspects of the perceived value of its products. Its products cost more than the market average because customers have shown they are willing to pay those prices since Dyson shows it focusses on performance, engineering quality, durability and leading innovation in the market.

Your company’s perceived value drivers may be different, and so your innovation strategy should be adjusted accordingly.

But for me, I don’t think I need a hairdryer that expensive. My hair is so short a towel will do fine.

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Would you pay $400 for a hair dryer, even if it was the best one in the world? Let us know in the comments, and don’t forget to share and follow us on Facebook and Twitter.