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How could something get so popular and in such a short period of time become almost non-existent?
By:
Max Ringelheim
Every year, there’s a product that becomes the hottest thing on the market—something everyone feels they simply must have. And then, for some reason, after 12 to 24 months, no one is talking about this so-called “must-have” product or service anymore.
. But why is that? What is it about these fad products that causes them to skyrocket to the top, only to vanish from the market just as suddenly? How can something become so popular and then, in such a short time, become almost nonexistent?
. There are many reasons why this happens to products like the Snuggie, Silly Bandz, and Beanie Babies, but the most recent product I’ve seen this happen to was the hoverboard. In my opinion, you know you’re potentially dealing with a fad product when it’s something no one has ever seen before—a product that offers a unique and clever way of doing something differently than we’ve ever seen before.
, Snuggies offered a new, fashionable, comfortable, and practical blanket. Silly Bandz took your standard bracelet and your favorite object and simply combined the two into a malleable bracelet. Beanies Babies had their own stories and poems associated with each tag, made funny "bean" sounds when you played with them, and looked more adorable than your standard stuffed animal. All of a sudden, the centuries-old blanket, bracelet, and stuffed animal had been reinvented in a clever new way.
With the Hoverboard, we were reinventing personal transportation. We were making walking and biking much cooler and more efficient, while propelling the concept of personal transportation into the 21st century.
. In the case of the hoverboard—just like each of the examples above—it became very popular very quickly and then faded from the spotlight. So why did this happen to the hoverboard? Let’s look at a couple of reasons below:
Marketplace Confusion:After just a couple of months, consumers were faced withhundreds of hoverboard options to choose from. The overwhelming number of choices simply left consumers confused and unsure of which device to buy. Every single hoverboard looked identical. For many consumers, this was a major turn-off because it raised so many questions. Which one is the best? Which one is the safest? What are the differences between Flow Wheel, Sky Walker, IO Hawk, and various other brands? I believe these questions ultimately led many consumers to purchase a different kind of personal transportation device altogether. Why risk $1,500 or $300 on a product that raises all these questions? Consumers could find a product that had been on the market longer, looked just as fun, and had been vetted by past consumers, allowing new buyers to make an informed purchasing decision.
Injuries:By December 2015, there had been over 70 separate hospital reports of people injuring themselves while using a hoverboard. When consumers began seeing these reports in the media, it became an even bigger deterrent. Parents became concerned about buying the product for their children, and parents who had initially purchased the device decided to return it, deeming it unsafe.
Fires:By the time Christmas 2015 rolled around, it felt like for every story about hoverboards being the most popular gift, there was another story about a recent fire caused by a hoverboard. You’d hear about a house that burned down in California, a kitchen destroyed in Michigan, or a viral video on social media showing a consumer’s hoverboard in Florida catching fire outside their home. These stories continued to pop up week after week. Once again, parents became concerned about buying the product for their kids, and parents who had initially purchased the device decided to return it, deeming it unsafe.
Low-quality hoverboards breaking: For those consumers who took a chance on purchasing a hoverboard on sites like Amazon and Alibaba for around $400, well, let’s just put it this way: a large number of them decided never to buy a hoverboard again. At our company, Flow Wheel, we would constantly hear stories from people who would call our office telling us that their Hoverboard, which they had ordered from Alibaba, had arrived in multiple pieces or was broken the moment they started riding it. Most of these people decided not to take a second chance on buying a Hoverboard.
Novelty item:Fad products are often directly classified as "novelty items." A novelty item is defined as an object specifically designed to serve no practical purpose, and is sold for its uniqueness, humor, or simply as something new. Although I believe hoverboards have a practical purpose in certain environments, for many consumers the device was immediately labeled as a novelty. Novelty items, unfortunately, do not correlate with sustainable high-growth businesses.
Local Governments Not Ready: Local governments, cities, and municipalities simply weren't prepared to see hoverboards take over their city streets and sidewalks. Many urban areas weren't equipped to handle a surge of hoverboards on their streets and feared the injuries that might result from unsafe riding. As a result, cities like New York London these products. When consumers heard about these bans, they hesitated to buy one and, in most cases, decided against it. I believe there was a major concern similar to the one mentioned above: that purchasing the product might simply turn out to be a novelty they wouldn’t be able to use.
Believe it or not, there were dozens of other reasons why the Hoverboard became a fad product. Many of these other reasons will be covered in upcoming blog posts. What can definitely be said, however, is that launching a business based on a fad product can be a real pain, especially when it goes viral. The reason is that during the viral growth phase, you feel like you’ve hit the jackpot, and it creates a false sense of security.
This viral illusion feels so good that you mentally brush aside many of the signs, warnings, and red flags mentioned above. When that illusion begins to fade six months later, you end up realizing that many of those circumstances were actually beyond your control, and if you had known about them beforehand, you probably wouldn't have started the business in the first place.
Max Ringelheim is a 26-year-old seasoned, successful entrepreneur—and, like many others before him, a failed one. After graduating from college, Max co-founded and bootstrapped his own video conferencing technology company called Vonvo.com. After 3.5 years and achieving many milestones—such as raising over $150,000 in angel funding and having his software used at the United Nations—he decided to put Vonvo on hold. He then transitioned into a consulting role for various startup companies in NYC. Some of his most recent consulting roles included serving as an SDR for an ad-tech startup called ListenLoop and being responsible for co-launching the recently acclaimed “Hoverboard Movement.” Some of his accomplishments in the hoverboard industry included generating over $1 million in sales revenue in less than 8 weeks and establishing dozens of partnerships with various notable celebrities. Max is now looking for new opportunities with exciting companies where he can leverage his tireless work ethic, extensive network, and viral growth hacking skills.
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