I read a post on Reddit that said the writer wishes that “T-shirt business is the most commoditized business and people are not going to be successful pursuing another T-Shirt business” be made sticky ( reworded).
While I can understand the frustration of getting repeatedly asked the same kind of question, it definitely deserves an answer.
The question can be generalized “Is there any hope for starting a business in highly saturated market ?”. A Tshirt business is highly commoditized like hundreds of other businesses. The colors and designs have been done to death. Every T Shirt appears to be funny or attractive. There is hardly much differentiation. The market looks saturated.
Some years back , I met a person who wanted to provide services more cheaper than large companies like IBM. He was looking for funds to achieve that. Imagine trying to beat IBM in their own business. Imagine, how much funds that would take.
It is far easier to think of an idea when it relates to commodity business. It is easier to recall because we are bombarded by advertisements mostly related to commodity businesses such as soaps, TVs, apparel etc. We also see companies trying to carve out a sub niches in highly saturated niches.
Finding the niche and also being profitable is tricky
When you start selling your stuff , you realize that there are others who a) deeper pockets b) more clout and c) larger sales team.
But that is not really a time to back off. One needs to strategize better than running away from the competition.
A Tshirt business can be successful
Initially, T-shirts were meant to be worn under shirts. They were made of cotton and were created in plain colors.
With time, however the colors and design got better. Good fabrics commanded higher price. T shirts with funny messages were everywhere. Later on T Shirt printed with rock and pop artist images became very popular.
The T shirt industry moved into all segments possible
- Cheap vs costly
- Gym wear vs party wear
- Matte clothe vs cotton
- Branded vs unbranded
The segments kept popping up. There are so many of them now ( the example is of shirts but you can relate).
What I have observed is that commodity business runs on trends. What is cool today , maybe off tomorrow. Good understanding of the market and the existing trends give a great insight into what is currently hot trend.
How do you crack this market? Here are a few ideas
Start by asking questions- The best thing to do is to strike a conversation with a salesman at popular T Shirt joint. Maybe buy one or two T Shirts to gain his or her confidence. By asking pertinent question, you can find what sells and what does not.
Observe the trends –You can visit a lot of shops and check out what the Tshirt shops are displaying. Is it more branded stuff or is it more design oriented stuff that gets the prime space.
Find out price which buyers are willing to pay – Without willing buyers , it would be impossible to sell T Shirts. A good survey of few shops in the area may reveal , how much T shirt buyers are willing to pay
Find out how you can reach the buyers – Is it with partnership with existing shops or selling on your own ? Often the young crowd hangs out at coffee joints.
Find out how you can network with them – Social media gives a great way to reach your audience. Once you know what your customers like to share, you can create stories around them.
Willingness to experiment – You may or may not succeed in first attempt but by trying you will learn more about market. You will have better interaction with customers when you have a product. Refine your strategy and tactics based on the target market requirements
Carving out a niche – If you don’t have deep pockets, you can always find a niche that works out for you. Offering something different from what is available in the market will set you up for success.
Cracking a commodity market is not easy but it can be done with right planning and strategy. So one can indeed
“Image courtesy of [basketman] / FreeDigitalPhotos.net“.