Unlocking Growth in Plain Sight

Reflecting on data, it's evident to conclude and agree to the pivotal role business owners and entrepreneurs, especially via SMEs, have played in solving the needs of the people and society at large, if only they can grasp the far-reaching implications of their impact and how their influence has shaped lives. Yet, in an era marked by increased awareness, under our nostrils are unclaimed spaces and real blind spots hiding in plain sight—overlooked social and economic opportunities that continue to be unserved.

This is not necessarily about diversifying; rather, it's about seeing differently and paying attention to what and who has been left out in the market you already serve. By identifying and penetrating these markets, you can help businesses stay resilient, creating impact and not just revenue growth alone.

Undoubtedly, business owners experience roadblocks when creating new innovative businesses unlike the existing ones, where billions have been poured in because they have real numbers.

Meanwhile, there are some sitting on the sidelines, untouched and underserved. Lack of awareness is veiling the uncontested territory that can be taken advantage of, and only a few will have to dare to rethink and reshape the society.

McKinsey & Company research highlights why many businesses may never catch up with the market, which will continue to remain a step ahead, revealing only 7% of corporate growth driven by market share gains, while the other 93% of growth comes from choosing the right spaces to specifically operate in.

Similarly, according to McKinsey research, businesses that identify and respond to overlooked segments ahead of their competitors consistently outperform their peers, with 64% of high-growth companies attributing their success to acting faster than the rest of the market; these early movers report up to 2x higher revenue growth rates over a three-year period.

Also, a market gap revealed by the International Labour Organisation (ILO), the International Monetary Fund (IMF), and the African Development Bank (AFDB) shows that Africa's informal sector makes up 60% of GDP, and few businesses serve them with structure, meaning less than 20% of these people and businesses are served with any form of structure.

This clearly shows that over 60% of the economy has been ignored. A great opportunity is revealed—by serving the underserved, businesses will be able to build for the rest that have been overlooked.

For instance, broad research on one of the most overlooked markets, sports and sporting goods, a recent study by the World Health Organization (WHO) found that nearly one-third (31%) of the world's adult population, 1.8 billion adults, are physically inactive, and if this continues, it is projected to rise to 35% by 2030.

With a record of 81% of adolescents inactive, many factors have been studied. Why don't people want to indulge even though it contributes to a major part of their health? Many people feel fitness isn't for people like them because of conservative cultures, due to being overweight or age or maybe disabilities.

Whereas in the same study shows that people who are insufficiently active have a 20% to 30% increased risk of death compared to those who are sufficiently active but the problem lies when fitness marketing only shows young, thin, hyper athletic people, then large portions of the society opt out not because they don't need it but because they are not represented — this is branding failure not demand failure. Moreover people don't give in because most times fitness is sold as luxury.

Attending to a certain portion as little as 10 to 20% are converted, that's hundreds of millions of new customers for fitness, wellness, digital health, gear and more.

This reveals the massive potential for physical inactivity, and any business intervention to meet the required needs of the people, to claim the new space, to include the underserved will unlock the new market that is waiting to be seen. To increase accessibility and availability in the society, if someone builds for the busy mother who feels guilty, the shy teenager who fears being seen, the middle aged man with bad knees and no friends to exercise with or the low income worker with no gym nearby they will unlock a new market. That people don't want to get involved is not a general opinion but it is due to systemic market failure.

Many still have a lot of potential to grow by exploiting overlooked segments, channels or categories.

Unlike the region where it is saturated but actively moving, where there is high competition and a slight misstep can send business packing in because credibility has been compromised but seeing differently can open businesses to segments where there are unmet needs, low competition and high growth potential.

To uncover unexplored markets and take on the opportunities it's important to:

1. Identify the best place to start or segment, then go deep.

2. Study trends to serve the underserved and find a pain point that hasn't been solved well.

4. Create a working plan of action

5. Analyse your customer needs and preferences 

6. Build a lean, fast moving, data led operation.

7. Reposition your brand to solve a bigger and newer problem.

8. Adopt marketing strategies that show problem solving capabilities.

9. Maintain accessibility, availability and affordability.

10. Leverage result to gain more customers 

It is left to both established and new businesses to think differently. To reimagine how and who they serve, attend to the existing gaps that need practical solutions, provide better services, manage supply chain complexity, and streamline operations their efforts in these areas — with a sharp focus on execution the industry will be well placed to continue its positive trajectory. The biggest mistake is waiting too long while others take action.