In an emergent market, competitors are not a bad thing, as Tomasz Tunguz of Red Point ventures explains:
“At the early stages of market creation, the most threatening competitor isn’t the startup down the street. It’s non-consumption. Simply put, the customer does nothing, buys nothing.”
Sport shoes had to first sell running before people started buying them. Meditation apps had to sell mindfulness before the app.
Headspace validated the market for meditation apps. But meditation is still a niche and no matter how much they can evangelise it it will stay small.
Calm however moved away from meditation and focused on the benefits for the user: reducing anxiety, happiness etc. Meditation became part of the story and product but not the be-all and end-all. They added stories, sounds and 3 years later became the dominant wellness player.
❤️ Brainstash Inc.