This is a Quora question:
Brands and Branding: What are the barriers to entry for CPG companies (Food, HPC)? What prevents new on-trend brands (“better for you”) from displacing established brands?
My answer is as follows.
There are two key reasons, from my perspective.
Brands that come up with new products with small improvements over existing products may not offer enough differentiation to get the attention of consumers or retail category buyers.
New brands, especially small startups, usually do not have the marketing dollars to create sales and brand awareness.