Targeting nonconsumers, those who lack the money or skill to use existing solutions, can lead to significant market growth and innovation. This strategy, known as ‘market-creating innovation,’ was notably employed by RCA, who targeted nonconsumers of music by developing affordable radios in the early 20th century. This not only created a new market but also spurred a host of related industries, from advertising to pop music.
Similarly, Tesla’s electric vehicles (EVs) have targeted nonconsumers in the automobile market. While initially seen as a luxury item, Tesla’s EVs have become increasingly affordable and accessible, creating a new market for electric vehicles and stimulating related sectors such as charging infrastructure and battery production.
The success of market-creating innovations like RCA’s radios and Tesla’s EVs demonstrates the potential of targeting nonconsumers. This strategy not only creates new markets but also fuels economic growth and job creation. However, it requires a deep understanding of nonconsumers’ needs and the ability to develop affordable, accessible solutions.
Go to source article: https://www.christenseninstitute.org/blog/from-radios-to-electric-vehicles-targeting-nonconsumers-pays-off/