We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Business

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What Does "First to Market" Mean?

Helen Akers
By
Updated: May 17, 2024
Views: 8,756
References
Share

"First to market" is a term used to describe companies that gain early market share for a new product or product category. When a product is introduced, there is usually an absence of well-known competition. Companies that wish to establish themselves as market leaders, gain brand name recognition and maintain long-term market share may pursue this type of strategy. Large, established companies sometimes develop and introduce new products in order to remain competitive and appeal to consumers who value innovation.

Companies that employ a "first to market" strategy may be the first to sell a product or be the first to gain significant market share in the product's category. For example, a global market leader in consumer beverages was the first company to introduce cola-flavored soft drinks. Some companies have become leaders by introducing products before high levels of competitor activity existed in certain product categories, such as snack foods. Even though a company may have not been the first to produce and sell potato chips, its particular brand might have gained the largest early following.

For some companies, a "first to market" advantage is the ability to establish brand name recognition and loyalty. By placing a new product on the market before there are a large number of competitors, companies can maximize the number of potential consumers who try, use, and adopt the product. In some cases, the product category becomes associated with the brand name of the market leader's product. When consumers think of or refer to the product, they call it by the market leader's name regardless of whether they purchase its brand.

The "first to market" strategy can help companies maintain long-term market share. Several developers of new products have long-term market shares that outpace the shares of their competitors. While this is not guaranteed to happen, the bulk of consumers tend to stick with one or two brands that they become familiar with. By being the only available option during the product's introduction stage, consumers are more likely to develop a preference for the brand they have more experience with.

Disadvantages associated with a "first to market" strategy include high development costs and the risk of being imitated by competitors that can deliver more value. In some ways, companies that introduce new products open up opportunities for other organizations to steal market share by producing lower-priced imitations. Market leaders also bear the burden and costs associated with creating awareness about their new products and convincing consumers to try them.

Share
WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Link to Sources
Helen Akers
By Helen Akers
Helen Akers, a talented writer with a passion for making a difference, brings a unique perspective to her work. With a background in creative writing, she crafts compelling stories and content to inspire and challenge readers, showcasing her commitment to qualitative impact and service to others.

Editors' Picks

Discussion Comments
Helen Akers
Helen Akers
Helen Akers, a talented writer with a passion for making a difference, brings a unique perspective to her work. With a...
Learn more
Share
https://www.wisegeek.net/what-does-first-to-market-mean.htm
Copy this link
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.