MSME Innovative Product Development Strategy Based on Digital Consumer Preferences 5.0

Abstract

This study aims to examine innovative product development strategies in Micro, Small, and Medium Enterprises (MSMEs) based on digital consumer preferences in the context of Digital Society 5.0 transformation. The study was conducted through a literature study method of 12 scientific articles, which discussed aspects of product innovation, digital consumer behavior, and MSME adaptation strategies in the digital economy ecosystem. The results of the analysis show that digital consumers have complex characteristics: a desire for personalization, speed of service, and emotional value for products. MSMEs responded with various innovative strategies, such as co-creation, the use of social media analytics data, digital segmentation, and A/B testing. Data driven strategies are proven to increase product relevance to the market and efficiency in decision making. This study concludes that product innovation based on digital consumer preferences is the key to the competitiveness of MSMEs in the digital era, but it requires the support of the digital ecosystem and an overall improvement of technology literacy.