This is pretty interesting but may not be so relevant in the context of digital products or doing a startup. Yes, we want our products to be mass market from day 1 but if your low-capital 2-person company can get traction in a 1% niche market then you'll have money to focus, retarget, and grow to 2%, 4%, 8%. Pepsi, on the other hand, needs to pay for inventory, shelf space, marketing, and distribution so their profit margins probably depend on mass market adoption. They're also in a position where it's more profitable for them to just axe less popular products and try again rather than steal shelf-space and mindshare from their big sellers.
Yes, I had a similar issue with this article; sometimes, appealing to a niche market IS a path to success. There are countless successful business that cater to smaller market segments.
The article is about product development in retail. If you're not planning on selling your product via a major retailer then this article doesn't apply to you.
While I agree with your sentiment, I would like the article to drill down on the reported behaviour. What happens to those people who gave good early traction (the 4 quick repeat purchases). ie do they continue to buy (niche) or do they move on to the next bright new-fangled thing. If it's the latter, as a two-person company, the fad may wear off quicker than allowing you to get the refocus, target etc.
Identifying who these buyers are is the key ... and ultimately very difficult to ascertain. Any tips on that would be incredibly valuable.
Well-said. I've heard that one of the main reasons Sequoia invested in Airbnb was because they looked at what they were doing at the time, helping people rent out air mattresses in their apartments, and felt it could be generalized out to renting houses, apartments, and all kinds of spaces.
