As a private label supplement retailer, it is essential that you are always on top of current industry trends. When a new product or ingredient takes off and becomes popular, it would be unreasonable not to try and benefit from the hype. But this kind of business model, also referred to as “market following,” is not always the right one. It’s a widely known fact that close to 75% of new product launches actually fail — therefore, you should diversify your business strategy and also try to be a market maker. Read on to find out what exactly this means.
Peter Leighton on Market Makers: Who Are They?
During this year’s Next Innovation Summit, market research expert Peter Leighton gave a great explanation of what it means to be a market maker and how to become one. He defined market makers in the following way: “companies that lead in markets use predictive data analysis to either identify trends in their incipient stages, or better yet, to identify as-yet ill defined consumer needs and create a trend all their own.” As you see, following a rising trend is most beneficial if you are able to recognize it while it’s forming, but has not become a fully-fledged trend. But according to Leighton, what’s even better is trying to create your own trends.
He gives Starbucks as an example of very successful market making. People now associate Starbucks with a lot more than just coffee, as they were the first in the industry to focus on creating a unique customer experience. To sum it up simply, market followers wait for signals that a trend has emerged, whereas market makers look for signs that they can create a powerful trend.
How to Find Out What People WILL Want
You are probably wondering, how can you find out what people might want, if they’re not yet aware of it themselves? One method would be to make a survey and ask them. But that’s the wrong approach. Asking people what they “would” like will most certainly yield a wrong answer, because what people imagine they would like and what they end up liking are two different things.
When Reuters asked readers what kind of news were most important to them, the answers they gave were a lot different than the reality of what they are actually reading, as shown by analytics. The author of the article couldn’t help but conclude the following: “Ask readers what they want, and they’ll tell you vegetables. Watch them quietly, and they’ll mostly eat candy.” And let’s not forget that people frequently lie about their preferences, even if it’s unconsciously or because they want to exhibit a socially desirable behavior.
So, instead of using surveys, you would be better off studying people’s actual behavior. In the words of Peter Leighton: “The approach is to go into people’s homes and observe how they interact with products in an empirical way. Where do they keep their supplements, for example? In the medicine cabinet? In the kitchen?” Using the insights you gather, you can get closer to what your new product should look like.
Becoming a Market Maker in the Supplement Industry
Once you learn how to spot a trend possibility, you need to know how to create a full-fledged trend by using your online presence. First, you need to use the information you gathered about your target audience’s habits to make the most appealing custom formula. Let’s say your clients have busy lifestyles and are always on the go. Your product considerations should take into account:
- Dosage: Have a high enough dosage (if the supplement in question can be taken in high doses with no adverse effects), so your clients have to take the supplement only once or twice a day as opposed to three times or more.
- Container Size: You will also want to create a compact bottle that fits in a small briefcase or handbag.
- Number of Pills: If your research found that your target audience shops for such products once a month, it will be best to put just enough supplements in a bottle to last them for a month. If the single purchase lasts them a month and half or two months, it would likely be a hassle for them — they may forget to order more, because it will interrupt their routine.
In any case, experimenting with custom formulas is your key to succeeding as a market maker. This way, you can discover and answer your customers’ needs before they even realize them, so you will gain a competitive edge.
Custom formulas will also enrich your brand with unique products that are not offered elsewhere, instead of just trying to get a piece of an already fragmented market. Don’t worry if you don’t succeed after the first attempts – many successful companies didn’t succeed the first time, but the attempts will give your brand a reputation for innovation.
Compiling the Right Combination of Ingredients
Here’s a quick tip about ingredients. Supplement retailers sometimes try to create a product with too many active ingredients, in order to appeal to a wider audience. Since many ingredients may interact with one another, or have properties that cancel each other out, a better approach would be to consult with a chemist.
To be on the safe side and make sure your product delivers its best performance, consult with one of our leading experts and together we can develop the next big thing in the supplement industry. Call us at 855-209-0225 ext. 2 or email us at sales@privatelabelsupplement.com to get a free quote or to ask any questions you may have.
All my best,
Stefani Thionnet
Stay focused and never give up!
