Innovation based on value co-creation: An alternative for Brazilian wine?

Abstract

The Brazilian wine industry has been facing obstacles such as competition and high tax rates. Innovation is an alternative towards this scenario being it a major factor for any company's survival and growth in the market. Besides this, technological advances and access to information provide consumers with a larger number of choices and knowledge for an informed decision making. Despite differentiation efforts consumers did not obtain satisfaction. Customer interaction provides another way to generate innovation from its involvement in the production process (co-creation of value). The research was held in an awarded winery located in Bento Gonçalves (Brazil) with the objective of understanding how the process of value co-creation between Brazilian award-winning wineries and consumers influences innovation generation. It is an exploratory and qualitative study collected through in-depth interviews with a semi-structured script. The winery identifies beneficial effects in the production process resulting from interactions because it narrows the bond with the consumer creating a better understanding of the consumers as well as develop a more tailored offer regarding value. The innovations generated based on co-creation can be taken as an alternative to imposed barriers in the current Brazilian wine sector.