Now is the time for disruption.
In light of recent events socially, politically and on a global scale, consumers are buying more than ever, finding comfort in things such as online shopping in an effort to distract themselves. How do you hope to stand out among a sea of other product pitches, catching the eye of the consumer that will ignite the flame that fuels rapid growth in your sales?
Texas has seen consistent movement of new products into the market as businesses feel the urge to take advantage of a situation in which consumers are in a borderline vulnerable state. Realistically speaking, however, it’s not feasible from a scalability standpoint for a product to launch nation-wide. Instead, easing a product into a regional market helps you to gain a foothold of market share, drive rotation on shelves and prove the product concept before looking to expand nationally.
Let’s Talk Numbers
Many products have found Texas to be a great option for an initial launch location. According to a 2019 article in Market Insider, if Texas were an independent nation, it’d hold the 10th-largest economy in the world, drawing approximately 579,000 businesses as of April 2019. As of August 2020, it holds the 9th-largest in the world, according to Texas Economic Development.
In 2017 alone, the Lone Star State’s economic output reached $1.7 trillion which put it ahead of the entire country of Canada, and only slightly behind Brazil. The size of the Texas market is an attractive quality for most investors and businesses in addition to its low taxes, non-invasive regulations and intense focus on job-building.
Multiple Metropolitan Areas
What makes Texas so unique is that it houses multiple concentrated metro areas, all of which foster slightly different demographics and cultural centers. This provides for a good look at the cross-section of consumer types demographically and psychographically. Your product will reach the shelves of stores accessed by locals from every walk of life, representative of the larger nation you look to expand to.
The Average Texan
When digging deeper to discover characteristics of the average Texas consumer, you’ll find that Texans are authentic and honest––sometimes to a fault. Simply put, if your product can make it in Texas, it can make it almost anywhere. These hearty, hard-working individuals are loyal to the products or businesses they like and trust but are also willing to try something new every once in a while. This open-mindedness suggests a key advantage for new products and businesses looking to launch in an unfamiliar market.
Texans are always out and always consuming, whether it be at their favorite local restaurants or at a new start-up in town. According to the U.S. Bureau of Economic Analysis, Texas averaged $40,552 in per capita personal consumption expenditures in 2019. Approximately $8,822 of this is spent on food alone for working families.
Texans also tend to be highly involved and active in sports, their families and communities. Word travels fast among this diverse group, spurring on growth in products as they are discovered and tried out by individuals within the community. They trust one another’s judgment and are firm advocates of the things they value.
Location, Location, Location
Texas’ location in the middle of the U.S. is beneficial for the expansion of your business or product from east to west. It also provides for a climate that is temperate and generally pretty pleasant, so businesses are not overly-affected by inclement weather throughout the year. There isn’t as great of a risk of disruption due to elements such as freezing temperatures up north and wildfires in locations like California.
Manufacturing and distribution capabilities in Texas make launching a product much easier than in other locations. Luckily, Texas happens to be framed by the Gulf of Mexico, from which Texas has led the nation as the top exporter for the past 18 years. In 2019 alone, the state totaled $331 billion in exports.
Lastly, comparatively speaking to the North East or on the West Coast, the cost of living in Texas is very reasonable. As a state, the median home value lies at around $166,374, fluctuating depending on which metropolitan area you choose to gravitate towards.
So, if we haven’t sold you yet, we’ll leave you with one final thought. When people say, “everything’s bigger in Texas,” that promise includes the culture. Texas prides itself on the vibrant, eclectic reputation its people have built from the ground-up. From cowboy boots to city slickers, rodeos to tailgates, barbeque to world-class Mexican food, Texas has a way of sweeping you up in its personality and asking you to be a part of it. When you launch in Texas, your product or business will find its home and niche here––and you might just never want to leave.