FWIW, when I had a corporate job, there was an anecdote in some big meeting that a competitor had literally photocopied one of the insurance policies my company was selling. They didn't even change the font. Yet, they couldn't sell the policy as well because they weren't servicing it as well as my company.

You may think the product is almost identical, but it may not be as identical as you think.

You can compete on many different fronts such as quality, support, price, features, market focus etc.

Also, they just launched, that means they are just starting as well which tells nothing of possible future success.

Even if totally unique, the market might be large enough to have multiple competitive offerings. It's rather unusual for one player to grab the entire market.

As I said work on it. You can differentiate by customers type (b2b or b2c), business model (subscription, advertise, once time payment, remarketing), features (mobile, web, offline) just to say some.