Existing products: Overview, definition, and example
What are existing products?
Existing products refer to goods or services that a company is currently offering in the market, which are already developed and available for purchase or use by customers. These products have gone through their initial development stages, are fully manufactured or produced, and are available for distribution. Existing products can include anything from physical items like electronics, clothing, or furniture, to services such as consulting, software, or healthcare offerings.
In contrast to new or upcoming products, which are still in development or in the pre-launch phase, existing products are established in the market and have been subjected to customer feedback, testing, and market adaptation.
Why are existing products important?
Existing products are important because they form the core of a company's current offerings and revenue generation. They represent the established market presence of a business and are typically the most reliable sources of income. For businesses, existing products serve as the foundation for growth, customer loyalty, and brand recognition.
Existing products are also crucial for businesses because they provide opportunities for innovation and improvement. Companies often use the performance and feedback from existing products to guide the development of new products, adjust marketing strategies, or enhance customer service. Additionally, strong existing products can create a competitive advantage in the market.
Understanding existing products through an example
Imagine a smartphone company that has developed a popular model and is selling it successfully in the market. The smartphone is considered an existing product because it is already developed, manufactured, and available for purchase. The company may continue to improve the product with software updates, offer accessories, or promote related services like mobile plans, but the smartphone itself is already part of their product line.
In another example, a retail clothing brand has a line of established garments, such as a range of T-shirts, jeans, and jackets. These existing products are already available for sale in stores and online, generating regular sales. The company may decide to introduce new styles or seasonal collections based on customer demand, but the existing products remain the main offerings.
An example of an existing products clause
Here’s how an existing products clause might appear in a contract or agreement:
“The Supplier agrees to provide the Buyer with existing products as listed in Exhibit A, including all current models of the [Product Category]. The Buyer shall place orders for such products under the terms outlined in this Agreement.”
Conclusion
Existing products are key to a company's current business operations, representing the goods and services already in the market and contributing to revenue generation. For businesses, these products provide a foundation for growth, innovation, and customer engagement. Understanding the role of existing products is essential for strategic planning, marketing, and product development, as well as ensuring long-term success in a competitive market.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.