Product development strategy is an important issue for the Hantaran MSME group in the city of Kediri. Because the products sold always face big challenges in market competition, to meet the ever-changing desires and needs of consumers. The aim of this research is to determine the right product development strategy for the Hantaran MSME group in Kediri City. The research method used is a qualitative research method and literature study. By taking the research object of the Hantaran UMKM group in Kediri city, totaling 27 members. Data collection techniques in the field were carried out using observation, in-depth interviews, group discussions, triangulation and documents. The results of the research are that MSMEs in the city of Kediri must always actively innovate or develop products to be able to compete by producing quality products, competitive prices and marketing development on various digital platforms that are adapted to changing times. Make good use of the opportunities provided by the Kediri city government.