How Novelsys Go From $1.5 Million to $0 Sales?

Did you know that the Novelsys team managed to raise their funding goal of $60,000 on Kickstarter within the first 24 hours itself?

Novelsys was founded in 2014 by Kenneth Lou and Mark Keong, as part of Kickstarter Campaign, where they achieved their funding goal within the first day itself.
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The main idea was to design a wireless charging system that eliminated the need for physical connections, allowing users to charge their devices conveniently in public spaces and at home. The Product was launched with much fanfare as a a much needed technology for the wireless charging enthusiasts.

First Reaction:

The First Reaction to Novelsys's wireless charging brand “Ampere” was great, as the early users appreciated its ease of use and sleek designs. It had also caught the attention of tech enthusiasts and tech savvy professionals alike.
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In the first year of its launch, Novelsys crossed the benchmark of selling 3,000 units, ensuring a great start in the business.

Keneth’s and Mark’s conviction in their vision can be easily gauged through this Job classified that they had put out for new hires in 2013, where they famously asked their new hires, if they were “The Next Elon Musk”

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But the Conviction Alone wasn’t Good Enough:

The wireless charging market became increasingly crowded with competitors like Powermat, and technology giants like Apple and Samsung also joining the race, which offered more reliable and established solutions.
​This created a Product Positioning crisis for the company as it struggled to differentiate its value proposition against the established players.​
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Novelsys’s revenue plateaued around 2016 and early signs of shutdown were evident since then itself, but company tethered along and tried countless Pivots after that. Company actually never recovered from the business challenges and Value Identity Crisis after that, finally forcing the founders to shutdown Ampere product in 2017.

5 Lessons Startups Can Learn from Novelsys’s $1.5 M Failure:

1. Clarity in Product Positioning: When selecting the target audience, conduct a thorough market analysis. Novelsys’ failure to effectively communicate their value proposition was one of its shortcomings.
   ​Better Example: Fitbit positioned itself among people who are aware of fitness and wanted a simple no frills wearable for their daily regimen.
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2. Quality Control is a Must: A product’s dependability and quality should be given top priority during development. Prior to releasing your goods onto the market, make sure it can meet the expectations of your consumer.
   ​Better Example: Functional testing and product quality vigilance are two of Apple’s strengths, which help to explain why customers identify the company with high-quality goods.
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3. Competition Awareness: Be flexible and agile in the face of competition. Evaluate your competitors in the market and know when to adjust your strategy.
   ​Better Example: Netflix frequently modifies its content strategy in response to market dynamics, competitor offerings, and consumer demand in order to maintain its leadership position.
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4. Clarity in Branding : Steer clear of branding strategies that don’t generate any clear value for the product. Highlight how it helps the customer improve their lifestyle or find a solution to their problem.
   ​Better Example: Slack effectively presents its value proposition as a platform for team communication and productivity.
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5. Invest in Customer Feedback: Ensure that when delivering the service or product, the expectations and feedback of the customers are taken into consideration. Understanding the product’s intended usage can aid in both its Positioning and Marketing.
   ​Better Example: Dropbox actively solicits user feedback and uses that information to expand its platform, attracting and retaining users.