Market disruptions occur when a brand doesn’t follow the category rules. Netflix decimated the video rental industry. Uber is threatening to do the exact same thing to the taxi industry. Online access to books is a revolution in how knowledge is acquired.

Sometimes, this insubordination can work against a product. An epilator for men didn’t work because the male population couldn’t accept the idea that hair removal would not involve the testosterone-laden act shave. The new solution was better. The new solution didn’t meet the customer’s expectations regarding male and female products.

Identify the key categories used by your industry to describe offerings. Then, demolish them.

Sometimes going against the grain can actually lead to great opportunities. What happens when a marketer creates new categories, perhaps by merging two existing ones. Chrysler created the minivan by combining a sedan and a station wagon. The modern SUV was born from this new category in the 1990s.

Wearable technology blends fashion accessories and computers. A stylish woman can now wear Swarovski jewellery that monitors her heart rate. Global demand for wearable electronics will grow to US$61.4billion by 2025. This is due to the development of low-power electronic components and microchips that are smaller and more powerful than the traditional ones.

We see an excellent example of this strategy in the apparel industry today. The industry had been experiencing anaemic growth even before the pandemic. A notable exception was athleisure. This new market has brought together two previously distinct categories of clothing: leisure and athletic. It is also a cultural phenomenon. Athleisure was recently added to the Merriam Webster Dictionary. This market is expected to reach $257 billion by 2026, according to analysts.

You might be able to combine a fashion product and a functional product. This was evident during the pandemic when Fendi and Gucci started making high-end facemasks to appeal to trendy social distancers.

As a consultant to a textile company, we found that some of the pioneers of the “smart clothing” sector saw more than just a pair of pantyhose. They see a delivery system that can apply vitamins, medications, and caffeine (which reduces cellulite). You can simply add microencapsulation to the fibres so that the substance is released when the customer moves.


Be The Rule Maker

Hybrid products or services combine features from two or more verticals. This defines the rules for a new category, at least until it is destroyed by someone else. We can see that today’s consumers are no longer looking for traditional categories, as we saw with the athleisure hybrid. They are climbing out of the boxes they were put in. The basic assumptions that we used to understand the market, such as the distinction between leisurewear and athletic wear have been thrown out the window.

It’s also interesting that brand owners aren’t aware of these dichotomies until they vanish. The fundamental categories that are the foundation of customer insight and marketing strategy no longer exist. Although brand owners love to use the phrase “Thinking outside the box”, it may not be enough when it comes to customer insight. Think outside the box.

Enthof Creatives, is a strategic brand consultancy that specializes in Brand Research, Brand Strategy and Brand Growth.