Building actionable insights from disparate information sources is important when entering a new market. In the final two stages of Milner’s Market Entry Strategy, we concentrate on evaluating competitor performance and developing a market proposition, taking the wearable market in China as an example.
China is the newest hotbed of technical creativity, so it comes as no surprise that it is making significant progress when it comes to the latest ‘hyped’ innovation – wearables. Chinese consumers have an increasing appetite for smart gadgets like wristbands and watches and Chinese manufacturers are cleverly cashing in. Furthermore, as well as traditional markets like sports and fitness, there is increasing adoption of wearable technologies in emerging end-use markets, such as safety and security, which could represent an alternative growth driver in the long term.
To build a winning market-entry strategy, newcomers must capture vital information about competitors and use an in-depth competitor SWOT analysis to:
– Examine the strengths and weaknesses of competitors
– Pinpoint the opportunities left and threats posed by competitors
Xiaomi is a leading electronics company that has played a key role in the Chinese wearable market by launching technologically advanced products at a low price. Other companies such as Huawei and Apple are also competing in the wearables market, but according to IDC, Xiaomi claimed 25 percent of the world wearable market in Q1 2015. With its Mi Band product that is priced at just $13, Xiaomi rivals the industry frontrunner Apple, but targets a very different customer base.
To establish a successful market entry strategy, one of the most important steps is to prepare a compelling market proposition both in the tactical short term and strategic longer term. In order to build an effective offer it is important to:
– Understand target customer requirements
– Identify the point of differentiation
– Develop an unique selling proposition
This reflects the previous stages we have discussed over the past few months: market analysis, market size validation and options prioritisation.
In China’s case, while a lot of wearables are focusing on health and fitness, other players are diversifying into multiple use functions, such as integrated social networking, wearable-based contactless payment etc. to fill a unique niche in which they can flourish.
New markets, both technological and geographic, are constantly emerging. We have helped our clients develop logical and well-founded strategies through bespoke market analysis, across a range of technology sectors, in challenging and changing markets worldwide.
If you would like to find out more about how this type of custom research can benefit your business, please contact Jonathan Davenport by email or give him a call for a chat on +44 (0)7793 916886.
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