Red is still BLUE- How to create your business niche in a Red Ocean marketplace?

What is the Red/ Blue ocean strategy?

We all have read about the Red Ocean strategy wherein there is much competition and each competitor is fighting for the same small pie of the market share. Blue ocean is where there is no or very little competition.

This article will narrate an example of how you can still make your mark in a cluttered marketplace in a category like Baby products.

In UAE, several sites are catering to Baby products online like Amazon, Noon, Babystore, Elli Junior,firstcry, etc.

They all are selling similar kinds of assortment for the target audience who is an infant or a baby.

Now, consider you start a business in this niche segment (baby products) and don’t know how to fight with giants who are already in the marketplace.

Today most of the categories or sectors are no longer in a monopolistic environment, rather there is a cut-throat competition everywhere.

So how can you leverage a competitive environment?

The answer is simple – Build your tribe.

?Consider an example that you are selling baby diapers, Post-pandemic, there is a Baby boom & influx of lots of expats in the market.

Get tie-ups with gynecology clinics or hospitals and get the list of newbie mothers.

Get the list of new weds from the matrimonial sites.

Suppose you get a database of 1000 couples, and you start communicating with them with parenting tips, tips for women during pregnancy, diet importance, self-care tips, etc by mailing them regularly and engaging them with your relevant content.?

Taking 10% as the conversion ratio, you get 100 customers who are ready to be your customers;

100 customers x 6 diapers /day = 600 diapers/day? ,

monthly 18000 diapers,

annually 216,000 diapers ;

?this is a good working model that you can convert into a subscription.

?And all this is based on just 100 customers who are your hard rock fans and your tribe.

?You can build your product offering with the growing Target group age, you can add baby strollers, and baby food and even collaborate with various companies for a fee.

?You become Amazon in your domain without even directly competing with your competition.

?If you are a business owner operating in the beauty/fragrance/fashion genre & want to grow your business & need a retail expert to help you achieve your “Vision to Reality” framework & strategize your business then feel free to schedule a discovery listening call over a #coffeechat. Inbox your text and my team shall reach out to you.

(Below is the picture of my friend Ms Shibi Kabeer and her husband at a Retail networking event).