Get All Access for $5/mo

How Niche Players Can Compete Against Big Brands Being the little fish in a small pond can be advantageous for young entrepreneurs.

By Adam Toren

Harry's
Andy Katz-Mayfield (left) and Warby Parker co-founder <br />Jeff Raider of the shaving startup Harry's.

If any company can prove that banking on a niche product can return a goldmine, it's Warby Parker.

But rather than designer eyewear for a fraction of the price, Warby Parker co-founder Jeff Raider recently set his sights on something even more niche: men's grooming. With the launch of his ecommerce-shaving-accoutrements store Harry's, Raider is planning on redefining the grooming market, much like he and his co-founders did with eyewear.

As with any highly-specific product or service, Raider had to find a way to angle his startup to standout. What could he change about the men's grooming industry that could make a difference in the eyes of customers? As it turns out, the way men interact with razors is as old as… well, facial hair.

So, Raider focused on offering a unique user experience at an affordable price -- think $2 blades, $10 handles and $8 shaving cream. Plus, it doesn't hurt that he added a socially conscious component -- donating a razor or dollar every time a pack of blades are purchased.

"We felt like we had to take a new approach in established markets to build our differentiated brands," says Raider. "Big name brands at times don't communicate directly with customers, and we've found customers like brands that care about them and exist to try to deliver a great experience."

While Harry's is just the latest niche brand to carve out a new concept in an established market, it isn't the first. Eco-friendly products brand The Honest Company is taking on Kimberly-Clark's HUGGIESwith its organic line. TOMS shoes reshaped footwear with its socially-conscious model and Bonobos is making a name for itself in menswear with an emphasis on fit.

Related: College Entrepreneur Dives Into Niche Business

As a young entrepreneur looking to follow in the footsteps of these successful niche businesses, here are some tips on how to create your own demand by redefining the market:

Identify users' needs.
By disrupting an established market, entrepreneurs can gain knowledge pertaining to what is missing in the current offerings. Listen to consumers on social media and forums for complaints, demands and recommendations. Some of the best inspiration comes right from the horse's mouth, making it easy for you to discover untapped demand.

Make your product stand out.
If you want to create demand for your product or service, you've got to offer the world something they haven't seen before. Whether it's a new experience, a twist on a popular product or an added service, pinpoint the difference and shout it from the rooftops. Not only should you focus on value creation by identifying your unique-selling proposition but also treat your customers as people first, not dollar signs.

Related: Not Top Dog? 4 Ways to Project a Bigger Brand

Tell a story.
If you are positioning your product to disrupt an established market, chances are you have a distinct offering. Great. Tell people about it. Consumers love a great story. By providing background information and a little narration, you can set yourself apart from every other company slinging the same product.

Get the word out.
Once you've created a distinguished product or service, manufacture more demand by generating buzz. One low-cost strategy is to build up your brand ambassadors -- the people that can't stop talking about your product. Ask for their feedback, give them sneak peeks into new offerings and provide incentives to spread the word.

Related link: How to Launch a Successful Brand Ambassador Initiative

What strategies do you use to standout? Let us know your secret in the comments.

Adam Toren

Serial entrepreneur, mentor, advisor and co-founder of YoungEntrepreneur.com

Adam Toren is a serial entrepreneur, mentor, investor and co-founder of YoungEntrepreneur.com. He is co-author, with his brother Matthew, of Kidpreneurs and Small Business, BIG Vision: Lessons on How to Dominate Your Market from Self-Made Entrepreneurs Who Did it Right (Wiley). He's based in Phoenix, Ariz.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business Solutions

Increase Productivity with This Microsoft 365 Subscription, Now $25 Off

It can make the entrepreneur life a lot easier.

Business News

Apple Pay Later Is Ending. Here's What's Taking Its Place.

The program was available for less than a year.

Leadership

This Artist Answered a Businessman's 'Powerful' Question — Then His Work Became 'the Poster Child for Juneteenth': 'Your Network Really Becomes Your Net Worth'

Reginald Adams was the executive director of a Houston-based art museum for more than a decade before he decided to launch his own public art and design firm.

Leadership

Harvard Business School Professor Says 65% of Startups Fail for One Reason. Here's How to Avoid It.

Team alignment isn't nice to have -- it's critical for running a successful business.

Business News

Here's What Companies Are Open and Closed on Juneteenth 2024

Since it became a holiday in 2021, Juneteenth has been recognized by some major corporations as a paid day off.

Growing a Business

I Hit $100 Million in Annual Revenue by Being More Transparent — Here Are the 3 Strategies That Helped Me Succeed

Three road-tested ways to be more transparent and build relationships that can transform your business — without leaving you feeling nightmarishly over-exposed.