Cracking an industry as large and competitive as food and beverages can seem like a daunting task. Major players like Nestle, PepsiCo, Mars and Coca-Cola dominate the market, while countless other brands seem destined to scramble for what’s left behind. But what many smaller businesses now realise is that you don’t need to challenge the big fish head-on to rake in the profits – you just need to find a niche and excel at it.

Revenue in Singapore's food and beverages market is tipped to grow by 14% in 2021 and continue rising until at least 2025. Within this colossal market lie thousands of niches designed to meet the evolving and increasingly specific needs of modern consumers. Consider the beverage market: outside of traditional soft drinks and juices, there is an increasing demand for products that are sugar-free, dairy-free, locally produced, ethically manufactured, an alternative to coffee and energy drinks, or even incorporating certain superfoods. Within each niche, further distinctions can be made based on their target market. Is a product appealing to health-conscious consumers? Bargain hunters? Teenagers? Mums? Office workers? 

Ultimately, being able to stand out in a niche provides an invaluable opportunity to build brand loyalty. While consumers in Singapore are increasingly willing to try new brands, there is no doubt that carving out a reputation within your niche can establish your brand as the go-to for a specific type of product. Achieving this is the holy grail of growth opportunities for new businesses, considering the gross profit margin for the non-alcoholic beverage industry, for example, was more than 54% in 2019. 

What Can New Industry Players Do to Create a Unique Selling Point?  

New businesses hoping to grow into a successful food and beverage brand need to identify a gap in the market. With a niche established, there is a range of strategies that can be used to stand out and continue building momentum. 

Look into Your Brand Story

It’s one thing to sell your product, and another to sell a story. People love a good story, and using a relatable narrative to market your brand is a fantastic way to help you distinguish products from the competition. Consider how Pepsi pioneered the idea that people don’t buy products, they buy better versions of themselves. Today, that message is all too common: global powerhouses like Apple, Red Bull and even McDonald’s focus much of their marketing on building a narrative that people can relate to. Absolut even proved the strategy works in saturated markets, propelling its vodka to popularity and entrenching the brand in the global market. 

Be Human

Running a business is complicated. Revenue, sales, analytics, logistics, supply chain, inventory, R&D – while these are all important areas of focus in retail, it’s easy to lose sight of what makes your brand relatable to consumers. Distinguish yourself from faceless corporations by maintaining a human connection with your customers - from broad strategies like marketing and packaging to more direct interactions such as providing customer service and support. 

Listen to Your Customers

With the evolution of technology, it’s never been easier to interact with consumers, so there’s no excuse for not listening to them. Some businesses are able to push their way into a new and more profitable niche based on what their customers are asking for. Whether or not you have already found your unique selling point, welcome customer feedback wherever possible and take note of their experiences with your brand. Tools like social media, customer surveys, reviews and website analytics not only give you a better idea of what your customers want, but also improve their feeling of engagement with your brand. 

Disrupt and Innovate

Just because there is already significant competition within a niche, it doesn’t mean you can’t do better than other brands. Businesses that disrupt the norm and develop new ways of meeting the consumers’ needs – sometimes by borrowing fresh concepts from other industries – often find themselves breaking into a seemingly impenetrable market. Technology can play a crucial role here: consider how new digital tools, platforms and infrastructure can be used to create a faster, better solution to an existing problem. As Singapore’s first-ever wholesale e-distributor, Direct Wholesale is the perfect example of how technology can empower an entire industry. The platform enables food and drink suppliers, distributors and brands in Singapore to scale with ease, solving countless headaches associated with traditional supply chains.