John Osher didn't try to make a cheaper version of the $80 electric toothbrush. Instead, he positioned the $5 Spinbrush as a superior alternative to the $3 manual toothbrush. This re-framing of the competitive landscape created an entirely new market category.
Marketers often mistake strategic positioning (finding a niche) for true category creation. A new category introduces a solution to a problem customers haven't yet articulated, requiring education on why they need a thing they've never bought before.
Home Depot succeeded by "counter-positioning" against incumbents like Sears. Their high-volume, low-price model was so different that if Sears tried to adopt it, they would have damaged their existing high-margin business. This strategic dilemma paralyzed competitors, allowing Home Depot to capture the market.
Osher's team realized users didn't want to learn a new way to brush. Their solution was a hybrid head with an oscillating top part and fixed lower bristles. This let people brush normally while getting electric benefits, creating a major user advantage and a strong, defensible patent.
A coffee brand struggling to compete with other roasters was advised to reposition itself within the multi-billion dollar wedding gift industry. By targeting a different use case and customer (bridal registries), the commoditized product gains a unique and defensible niche.
John Osher produced a $5 electric toothbrush because his previous venture, spinning lollipops, made him a massive buyer of small motors and batteries. This scale allowed him to pay pennies on the dollar for components, a supply chain advantage competitors couldn't replicate.
For Numi's novel undershirts, a major challenge was educating the market on the problem and solution. When competitors emerged, they didn't just steal market share; they helped validate the category and shoulder the burden of customer education, ultimately expanding the total addressable market.
To overcome skepticism about a $5 electric toothbrush, John Osher borrowed the "Try Me" button concept from the toy industry. This allowed customers to feel the motor's power in-store, instantly building credibility and driving sales in a category unfamiliar with interactive packaging.
Instead of inventing a completely new market, position your product as a sub-category of something people already understand (e.g., "like live chat, but for sales"). This "horseless carriage" approach makes innovation digestible by grounding it in a familiar concept, as Drift did.
T3 redefined the hair tool category by moving its products from the home appliance section to the beauty floor. By insisting on placement next to high-end skincare and cosmetics in retailers like Nordstrom, they changed consumer perception, justified a premium price, and created an entirely new market segment.
Many 'category creation' efforts fail because they just rename an existing solution. True category creation happens when customers perceive the product as fundamentally different from all alternatives, even without an official name for it. The customer's mental bucketing is the only one that matters.