2. What does the competitive landscape look like? What does the competitive landscape look like for your selected product and niche? Are you the first to market? Are there already a few competitors or is the market saturated with people selling the same product or targeting the same niche? If you’re first to market, you’ll want to do a lot of market research to determine that there is a market interested in your product. If there are a few competitors already in the space and they seem to be doing relatively well, this could be a good sign that the market has been validated. If there are many competitors in the market, it’s also a sign that the market has been validated, however, you’ll likely have to determine how you can differentiate your brand and products from the sea of competitors in order to carve out your own spot. EXAMPLE
Luxy Hair wasn’t the first company to sell hair extensions online. In fact, the market was filled, maybe even saturated with competitors when they began four years ago. Understanding the market was saturated with competitors, they knew they had to do something different to stand out and command the attention of buyers. Luxy did exactly that by entering the game with a completely different marketing strategy. While everyone else was paying for ads online, Luxy decided to provide value by focusing on YouTube as their exclusive marketing channel.
CHAPTER SIX: EVALUATING YOUR PRODUCT & NICHE
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