Is there something unique about your manufacturing process, seasoning process, curing process, delivery process? Sometimes a product can be differentiated by the way it was built. Software, hard goods, gourmet foods, bottled water… the strategy is the same for any product. If there is something about your process that differentiates your product, sell the process and explain why it matters.
Your process can even be mysterious. You can withhold secret ingredients and processes, as long as you reveal enough to prove your difference. If your competitors are offering cheaper and cheaper components and less and less bang for the buck, call them on it. Offer more. Offer better. And charge more.
If all the competing products are square, make yours round, then demonstrate why round is better. Maybe round fits more precisely. Maybe round is safer. Maybe round is easier or the hands to hold.
If your product is authentically innovative, that should be the foundation of your differentiation strategy. Or perhaps your process is innovative, thus making your product innovative. Perhaps your product or service adds a layer of innovation to boring technology.
In technical markets, focus on being the next, rather than being the latest even if you have to obsolete your old products to do it. Next is not totally without risks. For one thing, Next must be better. No one will buy Next if it is worse, or less than its predecessor. Do not pretend to solve a problem that does not actually exist or is nothing more than a tiny glitch that no one is willing to discard their old tried and true product to fix.
Do not make the mistake of trying to solve problems that people are not willing to pay to fix.