Intuit, in its 2021 New Business Insights report, predicted a whopping 17 million new small businesses would be formed in 2022, which is a third consecutive record year for entrepreneurship.

Everyday we’re fortunate enough to work alongside some of the most ambitious entrepreneurs looking to create and build compelling brands, the ones that instigate change and align or even reshape our behaviours.

While these founders come in all shapes and sizes, they tend to launch into one of two types of market – a saturated one or a brand new one.

The business school formula often seems so simple – get your MBA, identify a problem, create a product, make some money and raise some more – but what do you do when there are hundreds of competitors already out there? Or if the market is in its infancy and there is no rule book to follow?

Whether you’re a challenger entering a competitive market or have found yourself defining a new one, the following offers some advice to help shape the way you think about your brand.

Launching in a saturated market

When a space is crowded there is strong demand and familiarity, but also diversity. It’s often a few big players at the top who dominate and produce a completely different type of product or experience to those further down the food chain. As a young brand there are certain steps to take when seeking to navigate this challenge:

Express an outward-facing point of view to a niche crowd

The beauty industry is one of the most saturated markets out there but there’s still room for new players, as long as they have a belief or point of view that addresses a particular problem or desire.

One example - Wo Beauty recognised ethnicity has an influence on our skin type and offered an initial diagnostic and individual sachets of daily skin care in response.

Don’t copy. Look outside the sector for creative inspiration

While a sense of familiarity is a good thing, in a saturated market your audience is looking for something distinctive. For our client, a sustainable chocolate brand called Zora, we looked to the wellness and beauty space to inspire the brand’s packaging and visual language as its audience is a conscious, female consumer.

Find your narrative and share in compelling ways

While you may have to dig deep to find it, every brand has a story to tell. Our recent partnership with Commodity Fragrances led to Commodity TV – where the founder and wider team tell an ‘under the bonnet’ transparent story of how a fragrance brand works.

Pick one thing and do it well

Whether you’re a restaurant or e-commerce company, finding one thing and doing it with real expertise works well as a strategy in a crowded space. It’s been a mantra for Huit Denim, who have carved out a niche creating beautifully crafted, premium jeans whilst considering their environmental impact.

Launching in a brand-new market

The reality is most disruption is less about inventing a completely new product or service and more about the business model, be it D2C subscription or a reimagining a service whilst harnessing technology.

Uber is an often used example. From a brand perspective, all of the above is still relevant. The big difference, however, in creating or entering a nascent market, is that consumers are much less familiar with what you’re offering.

This brings additional considerations:

Align your context with cultural trends

Whether it’s changing patterns in the way we work, how society is evolving around gender, or the way we look after our health, the landscape around us is constantly changing.

It’s key for any brand to be in sync with what’s happening in the world. But in a nascent market your brand has to balance expressing the future whilst not appearing like a fad that doesn’t have long-term relevance. 

Educate but don’t preach

Your brand will have to work harder at communicating how you’re adding value or solving a problem, and do it with clarity, personality and optimism.

Our client Grub Club – who make insect-based pet foods – illustrate that a bold, irreverent attitude can educate but still chime with environmentally conscious dog owners.

Think early adopters not everyone

It’s not about finding a niche, you are the niche. Think hard about who you’re appealing to, and why your belief and offer will resonate with them.

In early 2004 the cycling brand Rapha was launched by Simon Mottram and Luke Scheybeler, while it’s now part of the cycling mainstream, back then their first pieces of stylish, high-performance apparel were targeted at hardcore cyclists who shared the same values and love of the sport they did.

What’s clear is that whether you’re launching into a saturated or new market, the way you define and express your brand plays a crucial role in the success of your business. It’s looking inward to explore what’s true and authentic, outward to be compelling enough to evoke interest in your audience and finally distinct so you can either stand-out or lead the way.