Before developing your UHO, you'd need to conduct a market analysis and understand your competitors, so that you can use those insights for a clearer direction when developing your UHO.
Analysis Of What’s Already In Your Niche On Etsy
Given that you have finished the previous course - Etsy Niche Discovery System, it’s now time to do a market analysis of your biggest competitors.
This step is important because if you just sell what’s already in the market, shoppers are unlikely to choose you as there are already established sellers selling the same stuff as I mentioned in the last chapter. So to develop something unique, you need to know what your competitors are doing.
When analysing your competitors, be thorough and figure out important details like:
- Product itself - Materials, colours, design choices, etc.
- Features & Functionalities
- Main selling point - What are they proposing as their unique selling point? Usually they put that in the first paragraph of listing description, shop tagline, title of about section, etc.
- Any creative ideas that you haven’t seen
- Their target customers that they focus on
Drawing Insights From Your Analysis
Once you've thoroughly analysed your competitors, you should find yourself with some valuable information. Now let’s use this information to come up with some insights to guide us when developing a USP:
- Product Design - Are there recurring design elements, colours, or motifs?
- Customer Preference - Dive into customer reviews and see if there are specific features or attributes that’s mentioned repeatedly. These could give you hints about market preferences.
- Market Trend - Is there a shift towards more sustainable choices, personalised options, or other trends for your niche of products?
- Underserved Audiences - Are there specific groups of customers that haven't been catered? For instance, for pet lovers, for certain hobbies, or for certain lifestyles?
- Pricing - Maybe there's room for a premium option in a market flooded with budget options?
- Values & Mission: Understanding what competing brands stand for can help you carve out a unique space. This could be based on craftsmanship, sustainability, community involvement, or any other values.
- Visual Identity - With information of the aesthetics of top-selling products, is there room for a different visual language that can stand out, such as packaging, product design, or branding elements?
With these competitor insights in mind, let's dive in to the strategies of developing your unique handmade offer.