How to Profit From Retro-Innovation

Smart companies can create value now by reviving products from the past and reimagining them for today's customers.

- By Vijay Govindarajan, Tojin T. Eapen, and Gautham Vadakkepatt

As the phrase “brain rot” has exploded in usage over the last couple of years, evolving from a humorous jab at wasting time online into a genuine descriptor for the mental fatigue brought on by endless scrolling, many have resorted to a solution that is surprisingly retro. From 2021 to 2024, feature phone purchases among 18- to 24-year-olds jumped 148%, with users abandoning smartphones for devices that can only make calls and send texts.

For a variety of reasons, consumers are increasingly drawn to products that recall the past but are meaningfully updated with today’s technologies to meet current consumer expectations. Consider the Analogue 3D, a modern version of the Nintendo 64 console from the 1990s, with hardware designed for today’s living rooms. Consumer interest has reportedly been so strong that the company has struggled to keep pace with demand.

Despite living in a new era of artificial intelligence, many people, including younger digital natives, are turning to technologies that have long been surpassed by newer innovations. This resurgence is being driven by more than just nostalgia and represents an opportunity for savvy companies. Businesses that are able to modernize older technologies for today’s technological standards and meet the needs of today’s consumers are capitalizing on what is known as retro-innovation.

Retro-innovation can involve specific product features rather than entire products. Physical buttons, for example, are making a comeback in automobiles after years of touch-screen dominance. A 2024 survey found that 89% of drivers prefer tangible controls for core functions.

To successfully capitalize on the opportunities such technologies represent, executives must understand the drivers propelling the movement.

What's Really Driving the Retro-Innovation Wave