Reflections on Competition and Collaboration in an Early-Stage Industry ??

Competition is a fundamental driver for progress and innovation in any emerging sector. When an industry is in its early stages, the rivalry between companies not only stimulates constant improvements in products and services but also plays a vital role in market education and expansion. However, for this competition to be effective and beneficial, it must be based on clear rules and integrity. In my experience working in highly competitive environments, such as Unilever vs. Procter & Gamble, Pepsi vs. Coca-Cola, and DeRemate vs. MercadoLibre, I have seen firsthand how competition pushes us to improve and offer better options to consumers. This dynamic not only benefits companies by motivating them to innovate and reduce costs but also favors customers who receive higher quality products at more competitive prices. ????

A crucial aspect of competition is its capacity to educate the market. The presence of multiple players in an industry promotes market evangelization, helping more consumers become aware of and interested in the products or services offered. This, in turn, expands the market, creating mutual benefits for all involved. ????

Moreover, competition strengthens us and helps us grow. Even if we lose in a competition, it prepares us for the next one. It's like competing in a marathon: if we don't win this one, we'll be better prepared for the next. Life is about growing through effort, trial and error, and fundamentally facing good competitors, because that makes us grow. Competing with someone superior elevates us, unlike unequal competition, which doesn't contribute to true growth. ????

However, for competition to be constructive, it must develop within a framework of honesty and transparency. Disseminating false or misleading information not only harms the company that issues it but also damages the credibility of the entire industry and hurts consumers. A recent incident on LinkedIn, where a competitor falsely claimed that NFTs were not suitable for digital credentials, highlights the importance of backing up claims with verifiable evidence and maintaining integrity in communication. ?? ??

In the business world, it is crucial to maintain good relationships with competitors, as there are numerous opportunities to collaborate in the development of the category. Instead of fighting over a small portion of the market, we should work together to expand it. We never know if we will end up partnering, selling, or buying from a competitor in the future. For these relationships to thrive, mutual trust is needed. A competitor who lies not only damages their own reputation but also affects the credibility and development of the market as a whole. Personally, I would not partner with or buy from a competitor I know lies. Well, I would sell to them if the price is good, but in cash, as I wouldn't trust them to pay me later nor work with them afterward. ????

The category we are competing in today is committed to credibility. Our mission is to ensure the veracity of information. It would be contradictory for one of my competitors to act against this mission. When publishing something, especially about a competitor, it is vital to ensure that the information is accurate and verifiable. This is even more crucial if it is disseminated through public platforms like LinkedIn or comparative emails between products. The information must be backed by impartial and verifiable analyses. We cannot base our claims on unaudited internal data; we need to resort to specialized teams to conduct audits and analyses, and only then can we publish the results backed by concrete sources. ???

Being good always pays off. Playing fair always pays off. Personally, I have maintained an excellent relationship with my competitors at MercadoLibre from day one. Our personal relationship has been excellent, but on the playing field, we competed fiercely, always respecting clear rules. We both grew together, worked to evangelize the market and expand it. The result? I ended up selling my company to them, becoming very good friends with them, and later investing in other companies together. They also later invested in one of my startups. This shows that being a good competitor pays off. One can behave well because they are a good person, but also because it is smart. Those who behave poorly cannot manage their emotions, becoming unreliable, and thus, one never knows what to expect from such a person. And the worst thing is doing business with unpredictable people. ????

All companies worldwide have had and have competition. Fortunately. And new players always emerge wanting to dethrone the incumbents. Sometimes they succeed, sometimes they don't. Markets are very dynamic, and to achieve this, they need to have a much better product or service and a superior commercial proposition. But that's not enough. A differentiated marketing strategy is also required. Because if the same product is offered, why change? If the same commercial proposition is offered, why change? And if the same marketing strategy is implemented, then there is no differentiation, and on the contrary, it strengthens the incumbent even more. Because customers will automatically identify the campaign with the incumbent who is in the customer's mind. Clearly, on the one hand, it hurts us that new competitors appear, but on the other hand, we should celebrate it because they will keep pushing us to be our best version. They will allow us to learn new things, innovate, and grow. But fundamentally, serve the market with the quality that the market requires. We know that in monopolies or cartelized oligopolies, the customer loses. When an industry stops receiving new competitors, the service and product do not evolve, and the customer loses. I toast to the innovators who want to develop the industry. There are thousands of examples of industries that were small because the industry leaders did not develop or innovate them, but competitors arrived who made the industry multiply by 1000 thanks to their innovation. For this reason, I hope that the industry we entered with POK will multiply by 1000 in the next 5 years, adding immense value to our customers. Although we entered the market very recently and there are other players who have been around for a long time, I have been fortunate to connect with several of them and have a very good relationship of healthy competition. Therefore, to those who are going to compete, whether incumbents or entrants, I advise that you get along well with your competitors and compete healthily. If you do, everyone will win. Some will be bought, others sold, and success in the market depends on each team's work, not on the presence or absence of competition. ????

Competition is essential for the development of any emerging category. It fosters innovation, educates the market, and ensures that companies strive constantly to offer the best to their customers. For this competition to be truly beneficial, it is fundamental that it is based on honesty, transparency, and mutual respect. Only then can we ensure sustainable and equitable growth for all involved. ??