Creating A Successful Business From Fast Changing Consumer Trends
Making profit from novelty products can be seen as an unsustainable venture. Still, in the 1990s, passing fads such as Beanie Babies made their creator, TY Warner, a billionaire!
Still, Statista predicts that the e-commerce industry will generate sales up to $4.8 billion by 2021. For many business owners, this opportunity is worth the pursuit. So, how can we build a successful business based on novelty items?
1. Research the prospects of the fad.
If you have an idea about your product, research your current and potential competitors. Are your competitors selling similar products, and what is their selling price? How long has it been since the “fad” began, and until when will it reach it demise?
This is notable to products that is related to major events such as the FIFA World Cup, as they will have a date where it concludes. This means, you can govern how much to invest into the fad without wasting too much time and resources on it, and if possible, focus on other areas on the business.
2. Review the market
Targeting and knowing who your potential customers are is the key to success to your product. This means collecting market research is crucial to identify your target market, and gathering various methods to reach them.
3. Entering the market quickly
As fads are usually short-lived, this means you need to gain access to the market swiftly. To ensure that you are prepared for this venture, it is necessary to raise sufficient capital beforehand. This is so you can cover the cost to produce and buy the raw materials of the product, and finding an outlet to sell it such as your website. A marketing plan should be formed as a plan to create awareness for your product, and its competitive edge to distinguish it from your competitors.
4. Raising awareness.
It is important to create awareness for your product as soon as possible whilst the fad is at its height. This can be done by planning your content in advance, and distributing it through social media platforms such as Instagram and Youtube. Furthermore, you can offer introductory discounts as an incentive to your potential customer.
5. Make the effort
To maximise the results of your product, be ready to work throughout days and nights. It is extremely important to understand that time is not on your side when it comes to fads, so make sure you have a strong work ethic throughout this venture to translate it into result.
6. Think of how to turn to create longevity for your products
Depending on the context, fad products can transform into a trend. For instance, glitter makeup is now a mainstream trend for the youth demographic throughout the year rather than using glitter as an one-off event. This shows by being inventive with your product, it can boost engagement with your target audience to make it a trend. Hence, this makes your fad product triumphant in the long term.