How Wellness Startups Can Compete in a Crowded Market

Written By Toby Patrick

The world has gone crazy for health and wellness. From people being prepared to spend more on their gym memberships to companies offering mental health days, it’s great to see that the world is taking health more seriously. And this trend has given rise to a whole host of startups within the health and wellness sector. While this is great to see, we are now reaching a point where the market for health and wellness services has become somewhat crowded. In this article, we’re going to dive into creative ways in which wellness startups can compete with more established competitors in an increasingly competitive space.

Find a Specific Niche

There’s an old saying in business: if you’re speaking to everybody, then you’re speaking to nobody. This essentially means that brands must decide on a specific audience and tailor their product and messaging accordingly. As a market becomes more competitive, it becomes increasingly important to niche down. Instead of simply referring to your product as a vitamin for women, it could be a sleep optimization vitamin for new mothers. This narrows your target audience and speaks directly to a certain group of people.

Build Trust through Partnerships

If you’re starting a business that has anything to do with health, wellness or fitness, building trust is paramount. Bear in mind that as a new business, potential customers have no reason to trust you. But by building partnerships, you can steal trust from other brands. Consider whether there are any brands or influencers within your industry that you can partner with. It could be anything from a leading provider of sterile water for injection to the most popular yoga studio in your local area.    

More Personalized Messaging

Bigger brands have an advantage when it comes to things like economies of scale and brand awareness. But there are certain tasks that are easier when you are smaller. Personalization has become a key factor in marketing, and startups have the upper hand here. While established brands are reliant on automated tools, startups can manually tailor their marketing and offers to individuals. This could include reaching out directly to certain individuals, creating bespoke offers based on an individual's interests, or even offering 1-to-1 support.

Build a Strong Brand and Community

It’s not all about the product on offer or the quality of service. Sometimes, customers want to feel part of something and creating a community-like following is a great way to create a strong relationship between brand and customer. Many modern-day fashion brands aim for a cult-like following by hosting physical events and releasing exclusive products for the most ardent followers. Similar tactics can work well for a wellness startup – try hosting run clubs, webinars, yoga classes and so on.

Use Technology to Create Something Different

Startups don't necessarily have the legacy systems and processes of established providers, meaning they can experiment with new technology. Apps, wearable data, AI-powered recommendations, virtual consultations and personalized tracking could all be used to create a more convenient or engaging wellness experience.

Another way you can differentiate your wellness startup from more established brands is not by offering a new product/service, but by taking something that exists and making it more technological or innovative. This is exactly what WHOOP did. WHOOP didn’t invent fitness tracking or digital wearables, but they did improve the way it tracks sleep and recovery, leading to a $10bn valuation.

Final Thoughts

There’s no doubt that the wellness space is becoming highly competitive, but don’t let this stop you from pursuing your dream and turning your idea into a startup. However, it is important to know that you can’t just copy what’s already out there. You must give customers a reason to try your product or service. Whether it’s trust, technology or the offer of joining a tight-knit community, find what works for your brand and your audience.