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What are challenger brands and why do they matter?
- 12/11/2024
- Written by Lawrence Flude

More than 20 years ago, Adam Morgan first coined the term ‘challenger brand’ in his book Eating the Big Fish. He described it as a company intent on shaking up industry norms and conventions to drive meaningful change in the marketplace. Over time, the term has been overused, often reduced to a buzzword, but genuine challenger brands are much more than trendy labels—they are a force for change, often misinterpreted as underdogs or disruptors aiming solely for dominance.
At their core, challengers aren’t about brute market leadership; they’re vision-driven. They prioritise purpose, challenge conventions, and place customer needs above all else. Challengers embodying these characteristics is what makes them truly game-changing:
- Have a vision-driven mindset – At the heart of every true challenger brand is a powerful vision. These brands strive to improve customer experiences and dare to break away from norms. Take Airbnb, for instance. Their mission, ‘To create a world where anyone can belong anywhere,’ redefined travel and hospitality. They didn’t just compete—they reshaped how we experience places, driven by a vision far removed from simply being another accommodation service.
- Focus on customers, not competition – Challenger brands turn their attention towards unmet customer needs, while competitors remain locked in the same cycles. They see opportunity where others fear risk. When Fenty Beauty launched a groundbreaking 40 shades of foundation, they did more than shake up the beauty industry—they listened and led with inclusivity. This move set new expectations across the industry, forcing even market leaders to follow suit.
- Relentlessly innovate for the better – Challenger brands don’t accept the status quo. They push for innovation that benefits customers. Tesla exemplifies this, shifting an industry rooted in fossil fuel dependence to electric mobility. Challengers like Tesla don’t just adapt; they redefine standards and drive positive change. Apple, initially a personal computing underdog, showcased how consistent innovation reshapes customer interactions with technology. Challengers find ways to connect, surprise, and make a meaningful impact.
- Think beyond the short-term wins – Challengers play the long game. Immediate wins are secondary to building relationships, driving cultural change, and championing their ethos. Patagonia, for instance, has redefined outdoor apparel by centring sustainability, fair labour, and social impact, building loyalty around a shared commitment to ethical practices.
In today’s market, challenger brands hold immense power. Driven by vision, customer focus, innovation, and long-term commitment, they aren’t just reshaping industries; they’re building a better future.
Ready to challenge the status quo? Whether you’re a market leader or want to embrace the challenger spirit, now’s the time to carve out your relevance and resonance in a dynamic world.
Lawrence Flude
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