How does the presence of a small pool of designers influence entry into the market?

The presence of a small pool of designers in a market significantly reduces the likelihood of new entrants due to the challenges and limitations this creates for newcomers. When only a few designers possess the necessary skills, experience, and recognition, it results in a high barrier to entry. New companies may struggle to find qualified talent who can create appealing and competitive products, leading to difficulties in establishing a brand identity and gaining consumer trust.

Additionally, with a limited number of designers, existing brands may secure these talents and create networks that are hard for newcomers to penetrate. This consolidation of talent not only protects existing brands but also creates an environment of exclusivity, where the knowledge and creativity that attract consumers become difficult for new entrants to replicate. Thus, prospective new market players might be discouraged from entering the industry if they recognize the significant challenges associated with a small talent pool.