How do you know your market space is being invaded? In heavily regulated industries, warning signs are obvious. In other industries, such as retail, it’s far easier to be blindsided by a new entrant.
Several of EkaLore’s previous posts depict Alien Invasions where the industry competitors clearly can see new types of competitors maneuvering to enter their market space. Regulated industries that require applications, approval, and often public paperwork flag potential different competitors. Space launch enterprises have to get permission from national regulators. Pharmaceutical enterprises must conduct clinical medical trials and use them to gain regulatory approvals and doctors' uptake. Vehicle manufacturers must pass third-party testing and government requirements. Electronics manufacturers need to buy the components and build assembly lines to make the products to sell to the consumer channel. The regulatory requirements make silent entry nearly impossible.
Players in other industries are more susceptible to a sneak entry from an Alien Invader outside the industry or geography. These invaders have time to build a customer base and capture share before competitors are aware.
EkaLore has written about specialty retail, where eCommerce and app commerce have changed consumer buying and retail margins (see Instacart and Retail). Specialty retail players have been aware of impending changes from possible Alien Invasions long before Covid-19 changed shopping and buying in categories away from the big box stores and malls. This hasn’t lessened the effects of eCommerce and appcommerce retail changing buying habits for marketplaces as diverse as pet food, consumer electronics, coffee in cups, cooking gadgets, and spices. Clothing retail sees fast fashion (online or hybrid experiences) and the oncoming threat of virtual/augmented reality try-ons (Warby Parker, Amazon, etc.). In these cases, the changes in consumer and commercial/industrial buying patterns were not obvious until Alien Invasion caused reductions in volume and margins became obvious.
Our next post will discuss an alien invader threat to Alcohol – Cannabis.
You can read this and other Alien Invasion pieces at www. Ekalore.com/alien-invaders
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