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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.
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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.
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Life-long learner. Passionate about leadership, entrepreneurship, philosophy, Buddhism & SF. Founder @deepstash.
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