Although its true that the first movers are always ahead in the business by being ahead of the competition with new products, companies gain first-mover advantage: they capture market share, establish a premium, are seen as a pioneer and build brand loyalty.
Still there is a clear advantage of being a late mover or last mover. The late-mover advantage means that followers can learn from pioneers’ mistakes, see whether there is a market worth entering and judge consumers’ tastes. As well as learning from others’ mistakes, followers can benefit from their investment in raising awareness of a new market before moving in.
Last-mover is also the tried-and-tested strategy of retailer brands. Own-label relies on branded suppliers investing in marketing to establish a new category before retailers come in with a lower-priced version.