Why footwear startups could be a threat
Flexibility allows footwear startups to easily adapt to the market, but is it enough to pose a serious threat to established companies in this industry?
The thing about established footwear companies is that they usually have a highly optimized manufacturing, design and selling process. But, if these companies do not innovate and adapt to new customer preferences, they face a serious risk of losing their business to newcomers in this industry.
Startups are naturally agile and fast. They usually have low resources, and the turnover only comes after a few years of being in business. As a result, it’s mandatory to nail the market and learn from mistakes as fast as possible otherwise money and investors can go away.
The need to have success is exactly what makes them strong and threats to established companies. They are much more prone to take advantage of new consumer trends and grab profitable niches.
Adapting to new trends
For example, it’s much easier to build a company from scratch to produce cork shoes than to rebuild and adapt a 25-years old business. This established company will have to adapt its production lines, train workers, find partners who can supply new materials in a sustainable way, and more importantly, change its’ mindset. The latter is definitely one of the biggest barriers to business innovation.
Consumers are constantly changing. A traditional company has its way of doing things and it's hard to adapt to new trends. But not changing and not having a clear competitive advantage can lead to the end of a business.
While a startup can easily identify and focus on a profitable niche, other players should understand that to have constant success a company must be prepared to innovate at all times and offer new products that consumers value.
How can they do it?
? Hire new talent
? Perform market research
? Read industry reports (Check out our footwear yearbook)
? Ask help to consulting firms
? Acquisition or partnership with startups
Another possibility for companies already established and benefiting strongly from economies of scale is to export their production to developing countries, where probably there aren’t many startups impacting the industry.
Startups are naturally agile and fast. They usually have low resources, and the turnover only comes after a few years of being in business. As a result, it’s mandatory to nail the market and learn from mistakes as fast as possible otherwise money and investors can go away.
The need to have success is exactly what makes them strong and threats to established companies. They are much more prone to take advantage of new consumer trends and grab profitable niches.
Adapting to new trends
For example, it’s much easier to build a company from scratch to produce cork shoes than to rebuild and adapt a 25-years old business. This established company will have to adapt its production lines, train workers, find partners who can supply new materials in a sustainable way, and more importantly, change its’ mindset. The latter is definitely one of the biggest barriers to business innovation.
Consumers are constantly changing. A traditional company has its way of doing things and it's hard to adapt to new trends. But not changing and not having a clear competitive advantage can lead to the end of a business.
While a startup can easily identify and focus on a profitable niche, other players should understand that to have constant success a company must be prepared to innovate at all times and offer new products that consumers value.
How can they do it?
? Hire new talent
? Perform market research
? Read industry reports (Check out our footwear yearbook)
? Ask help to consulting firms
? Acquisition or partnership with startups
Another possibility for companies already established and benefiting strongly from economies of scale is to export their production to developing countries, where probably there aren’t many startups impacting the industry.
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