Developing an Interest for and pursuing new market opportunities just before somebody else does is what would make your business exceptional from the rest.
But, you should be aware that not all opportunities are worth investing in. Successful entrepreneurs will inform you that going for too broad market openings can grow your priority list to unmanageable proportions, and that could negatively affect your team’s productivity, which can consequently lower your Return on investment (ROI).
However, to increase your chances of attaining above-average revenue growth, it is advisable that you only go after just a few promising market opportunities.
Well, as you may ask “how do I distinguish between promising and wild-goose-chase market opportunities? The simple answer is Market research!
Market research enables you identify the attractiveness of a new market before investing in it. It includes gathering of and analyzing of data about your product/services and how they would fare in a fresh market environment. It would also aid you in understanding the target consumer’s shopping habits, needs, and purchasing power. Finally, it shows you how your potential competitors have shaped the industry in your target market, and how you can disrupt the industry for the benefit of your business.
However, how can someone analyze market opportunities before venturing into it? Simple, you can pay researchers to study and analyze potential markets on your behalf, or you can discover the market opportunities on your own through the following ways:
Focus More On Your Existing Customers
The new market you are searching for might be right under your nose; your potential customers could be the very same persons you currently sell to. Therefore, ask yourself the following questions; apart from the products you sell, which other services or items might your current customers desire? For instance, if you specialize in baby products (pacifiers, monitors, wipes, toys, diapers, and grooming products, etc.), what happens to those babies after they outgrow your products? Before they were born, who dressed their moms through the pregnancy? Answer those questions and you will find market opportunities about products that relate closely to what you sell now and when added to your product offers, can enable you to create a new market for yourself.
Monitor Society Evolutions
Users of products that your industry provides, not just what you sell but also the products your competitors sell, might meet changes in their lives that revolutionizes their buying patterns.
So, you must observe such changes and evolve accordingly. In China, for instance, consumer desires are consistently evolving towards luxury products as the country’s economy grows. Therefore, is your and your competitors’ customers’ spending and purchasing power growing? If yes, then that is a new market opportunity coming up right there before you.
Research International Markets
You probably are struggling to discover market opportunities because you are focusing too much on your local market. Cast your net beyond your domestic borders and search for markets that could be having the same needs you solve for your local market. Look for markets where shoppers share the same purchasing power as your current market, if not higher.
The unsolicited comments, reviews or/and feedbacks social media users throw around for free can be invaluable to a visionary entrepreneur.
They will show you what they hate about the products your industry offers, the changes they would love to see effected, and why they import instead of buying local. They will reveal their pain points openly, so you just need to look hard and smart enough to see how you can repackage your products to address those pain points.
Your job does not end at discovering a potential market or market opportunity. It extends to targeting your social media, website, and offline campaigns for the new-found demographic.
Strive to decipher the values that matter to them and the languages that resonate best with them to establish a strong rapport that future competitors will struggle to infiltrate.