First, the existing market for product categories is large.
The category market where new products are located must be very large. When the market is large, whether it is to replace competition or to develop new markets, there is good growth space and potential.
Second, market barriers is relatively low.
How to judge the intensity of market competition depends on the calculation of product category development index and brand development index. In short, in the category market where new products enter, the total market share of the top five homogeneous competitive products should be less than 30%. There is no monopoly brand among competitive brands, and the barriers to market entry are low, so the chances of new products entering the market are high.
Third, consumers are not satisfied with similar products.
Consumers are not satisfied with similar products in this category market. Competing products can be the reason and motivation for new products to go on the market because of their general curative effect, low safety, narrow adaptability, inconvenient use, high price, poor taste, inconvenient packaging, strong substitutability, weak sense of science and technology and low packaging grade.
Fourth, the market growth rate is relatively high.
In recent three years, the compound growth rate of new products entering the category market has reached 15%, which shows that the products have good incremental space, stable market demand, consumers' recognition of product efficacy, and similar competitors are trying to make the cake bigger and have sustained market investment.
Fifth, the market investment funds are abundant.
With the introduction of the new policy, the market will become more and more standardized, and rational judgment should be made on the listing expectation of new products. It takes about 1-3 years for a new product enterprise to go public. Product listing research, publicity and promotion, academic activities and product pre-investment all need rational break-even analysis. Adequate capital preparation is directly related to the growth of new products and the future development of enterprises!