Challenger Brands: How to Win When You’re Not #1

Being #1 might come with the spotlight. But being a challenger? That comes with possibility.

What makes a brand a challenger is mindset, a willingness to question the category and act with a point of view. Without the pressure to protect the status quo, challenger brands have the opportunity to take creative risks and meet culture where it’s headed. Possibility comes from staying agile and showing up with purpose where others stay the same.

Samsung Mobile, a longtime Cheil client, is an especially interesting example of a challenger brand. As the world’s largest smartphone manufacturer¹, it leads globally in innovation and scale. But in the U.S., it operates from a challenger position, competing in a category led by Apple. At Cheil, we help Samsung turn that duality into an advantage, leading with cultural relevance and community-first storytelling.

One example: the “On the Fence” campaign.² Launched during Apple’s keynote, it spoke directly to hesitant Apple users, highlighting Samsung innovations like foldables and high-performance cameras, while addressing emotional switching barriers. The campaign sparked widespread conversation, shifting perceptions with humor, relevance, and confidence.

Another example: at TwitchCon, we could’ve shown up with a booth. Instead, we asked: how do we show up where culture’s already playing?  So we built the #PlayGalaxy Cup, a live mobile gaming tournament that put Galaxy devices directly in the hands of top streamers and fans. The product proved itself through play, resulting in thousands of real-time interactions, earned media, and a clear signal about Samsung’s mobile performance where it mattered most.

Challenger brands like Samsung are part of a growing shift. According to McKinsey, the number of challenger brands in consumer markets has increased by 25% over the past five years³, driven by changes in loyalty and faster go-to-market strategies.

So how can challenger brands win?

1. Lead with a point of view, not just a product.

In fashion, Champion rebuilt its brand by embracing Gen Z streetwear culture and partnering with creators who brought authenticity over polish. 71% of their U.S. customers now say they’d buy again. ⁴​

2. Turn limitations into standout features.

In personal care, Native broke into a crowded category with a simple, ingredient-transparent product and a direct-to-consumer model. They avoided traditional shelf wars and built loyalty through clarity and consistency. Today, they sit front and center in major retailers.

3. Build emotional loyalty by behaving differently.

In finance, Monzo and Chime reimagined the banking experience, removing fees, leading with empathy, and earning trust in a rigid, legacy-driven industry. The number of banking leaders who view them as serious competition has tripled. ⁵​

At Cheil, we help brands move with this kind of intent. That’s the challenger mindset.

Because when you’re not #1, you can move differently. And that might just be your biggest advantage.