Chasm: new innovative product

The previous post is about the Brand Positioning for new venture product.

But still, new innovative product faces tough conditions in order to get enough revenue.

I would like to introduce the theory of “Chasm” by Geoffrey Moore.

 

Chasm

In Japan, Amazon Japan is trying to cast its product “Kindle” now. Even though Amazon is one of the famous brand in Japan, “Kindle” is facing difficulty in its growth. Many scholar of business claim that electric reader is not match with Japanese culture.

However, I know more and more people are using i-Pad of Apple. Why Kindle faces such a difficulty?

 

G. Moore points that for the new innovative product, it will face the difficulty in main market, called Chasm. Chasm appears between “Early Adopters” and “Early Majorities.” According to him, “Innovator” or “Early Adopters” are easily attracted by those new technology products. What is called “high-tech-geek” is best description of those people. However, the main market, or majority of customers tend to follow the new trend when they are sure of products practice.

This significant gap of consumer trend is what is called “chasm” by Moore.

 

Solution

One of the solution is just simple: “Be patient.” It takes long time for those majorities to understand its value. Yes, that is true. However, marketers can much more for this issue.

 

Again, this solution is also about positioning. First of all, the targeted segment is chosen, and then focuses on this segment. Once the new product can establish its position in the market, then it also can appeal its strong value.

Other majority say “oh, this product is famous in this market, probably we can apply this technology to our lives.” Then new innovative product can be spread widely in the society.

 

Amazon Japan can focus on young generation, 20~30, of its e-reader firstly.

Those people are get used to new technology, and easy to accept.

Once Kindle will be accepted this segment, Kindle also be appealed to other segment market, and then gradually be spread among Japanese consumers.