Thriving in a Saturated Market - 3 Tips!
Market saturation emerges when the volume and availability of a product or service in a marketplace or industry has been maximized. When a market has become oversaturated, an organization can only achieve further growth through new product improvements or by taking over existing market share from competitors or increasing overall consumer demand.
In this post we will be discussing the “product improvement” strategy which can be applied by any new or established enterprise in the beauty and wellness space. The South African beauty and personal care market was valued at approximately 3.5 billion US dollars in 2018. The market is forecasted to be valued at about 6,16 billion by the year 2024 – according to Statista. These numbers signal a maturing industry which might hit a point of saturation following the forecasted years.
Despite evident saturation which is due – new companies will attempt to join the market and offer their own products and services as well, despite the competition and similarity of the products offered.
Here are three ways your beauty and wellness brand can differentiate itself when the market eventually faces saturation:
1. Add more products to an existing range or come up with a new range for a hot new segment
2. If the range is not coherent enough due to using too many different types of packaging or colors, unify the entire range using a singular color or type of packaging. Brands with organized products are more likely to appeal to experienced buyers.
3. Use unconventional ingredients as well as marketing tactics to single your brand out from the rest. In a saturated market – eccentric products ranges are more likely to be noticed as opposed to non-eccentric product ranges.
1. ADD MORE PRODUCTS TO AN EXISTING RANGE OR CREATE A NEW RANGE
One way to differentiate your brand and its product is to have a lot of products on offer. This can be a means of differentiation in the sense that your brand is more likely to be noticed by potential buyers if it has a large product offering which is likely to sway the buyer into the assumption that your brand literally has a lot to offer – both in quantity and quality. One example of this are big cosmeceutical companies that attempt to have at least one product in every segment to showcase their calibre. This naturally makes them stand out as there are only a few place where they aren’t available.
2. UNIFY ALL PRODUCTS USING COLOR, PACKAGING OR PHILOSOPHY
Another method by which your brand can differentiate itself in an overcrowded market is by aligning your products with a strong ethos that will capture the imagination and interest of your prospect buyers. This can also be achieved by means of color and/or packaging. In a saturated market, it is likely that the bulk of the competitors are new and small brands trying to get a foot in the market, which makes it more probable that their packaging is incoherent due to inexperience and/or lack of initial resources. By displaying a unified and coherent range – your brand automatically singles itself out from the bulk of competitors whose ranges are not well organized.
3. USE UNCONVENTIAL INGREDIENTS AND MARKETING TACTICS TO BECOME A UNIQUE BRAND
When it comes to standing out in a saturated market, the keyword is ‘unique’. Among the many ways your brand can show itself to be an innovative trailblazer in a market overcrowded with bland duplicates is the method of using unconventional ingredients as well as marketing tactics. While the ingredients may not have to be all that bizarre – outlandish marketing strategies have to be applied in order to stand out. The degree to which the market is oversaturated will determine how eccentric the marketing tactics have to be.
The three methods we have discussed above are few of many ways to make your beauty and wellness brand stand out once the market hits maturity and gets overwhelmed with competitor companies offering the same products, exactly the same way.
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