Let me tell you how the some of the greatest business ideas were born and give a takeway lesson from their story.
- Nike
In 1962 the co-founder of Nike Philip Knight decided to spend his time travelling across Japan. There, he got in touch with a Japanese athletic shoemaker, Onitsuka Tiger Co. As a former track athlete at the University of Oregon, Philip agreed to import their shoes to the United States on a small scale. That is how all started.
Takeaway: Sometimes you don’t have to innovate to be successful. You can take something exsisiting and introduce it to your market in a different location.
- H&M
Erling Perrson got the idea for Hennes & Mauritz (H&M) following a post-World War II trip to the United States. He had been impressed by the efficient, high-volume stores. In his home country of Sweden, he revolutionized women’s clothing retailers in Europe by starting Hennes (Swedish for “hers”).
21 years later Erling acquired Mauritz Widforss, a hunting store, and its inventory of men’s clothing. So he started selling men’s apparel as well and renamed his company to H&M. Today they have 2,000 stores spread across 37 countries
21 years later Erling acquired Mauritz Widforss, a hunting store, and its inventory of men’s clothing. So he started selling men’s apparel as well and renamed his company to H&M. Today they have 2,000 stores spread across 37 countries
Takeway: Travel. Every country and every nation is unique in its way, so there is always something to learn from there.
- Gillette
In 1895, while working as a traveling salesman for a cork company, King noticed that bottle caps were used once and thrown away. Then the bottling companies had to buy more bottle caps. This made him recognize the value in using this business model to create recurring revenue.
He also noticed that every man on the planet had to sharpen their razors daily. King envisioned an inexpensive, double-edged blade that could be clamped over a handle, used until it was dull, and then discarded.
He also noticed that every man on the planet had to sharpen their razors daily. King envisioned an inexpensive, double-edged blade that could be clamped over a handle, used until it was dull, and then discarded.
Takeaway: Business ideas are close to your nose. Be attentive what problems are you facing daily and offer your solution to them.
- CavinKare
In 1983, when CavinKare decide to launch its first product –Chik shampoo –the shampoo market had over 20. Multinational companies sold products in big bottles and not in sachets and they sold only from fancy store. They did not look at the small Kirana stores, nor they look at the rural market.
CavinKare found that many rural consumers were using bathing soap to wash their hair. The company field force found the reasons- the rural consumer had not heard of soaps damaging hair,and in any case, hair had been washed by soaps for generations. Interestingly the rural consumer was aware that shampoos cleansed hair better, but the product was expensive at Rs-2 per sachet. Given that India has a tropical climate round the year; women find it hard to maintain the softnessand shine of their hair. They often complain about the tangled hair. Based on these identified needs and problems, they used innovative sachet packing and a sachet was priced at Re 1 and 50 paisa.
Takeway: Offer a cheaper substitute to something very expensive. Ask around your friends what they can’t afford but need very much and make it your business.
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