Ever heard the term versatile and non-versatile? The term refers to a person who has mastered any task to a very small extent and has not acquired the necessary abilities and skills. The same is true of sales. Instead of focusing on the whole market and competing with big competitors, you can find a niche market with the right brand positioning for specific audiences, brand credibility, and ultimately business sales. Increase your work.
If you are thinking of starting a business, it is best to start with a niche market. New and untapped opportunities in this market can be easily reached. Always identify the niche market you have mastered enough and ensure regular customers and audiences. In the rest of this article, we will examine the concept of the Niche Market and explain how to identify it through a few examples.
What is a niche market?
A small part of a large market is called a niche market, which has its requirements, identity, and priorities and is therefore different from the larger market. For example, there are many niche markets in the women’s shoe market. Shoes for vegetarian women, nurses, and employees can be considered a niche market in the large market of women’s shoes.
Almost all existing markets can be divided into smaller segments according to the requirements and priorities of their components. The usual methods for defining a niche market are:
- Price (luxury, medium, and auction)
- Population (age, gender, income level, and level of education)
- Quality (premium, handmade and affordable)
- Psychology (values, interests, and attitudes)
- Geographical (residents of a specific country, city, or neighborhood)
Focusing on the niche market is a strategic decision that targets a specific segment of customers and performs better than companies operating in a large market. In the following, we will review examples from Niche Market together.
Niche Examples
Although business owners have already chosen attractive and popular products for sale, by identifying the niche market, they can also find products suitable for this part of the market and thus increase their chances of competing with other existing companies. In this article, we will introduce four major markets and examine the niche market sections in them:
1- Conscious consumers
Saving has become one of the most important issues among consumers. According to Nielsen’s research, forty-eight percent of consumers in the United States have changed their consumption patterns as much as possible to protect the environment. With the increase of this issue, the way has been paved for plant products and environmentally friendly. So if a product captures a large share of the market, conscious consumers in the niche market are always looking for a natural alternative.
Companies used to spend part of their revenue on environmental purposes to reach the niche market in the past. Still, today, most consumers pay special attention to the resources and production process. Bee’s Wrap, for example, has used beeswax to make shopping bags to protect the environment. These bags have eliminated plastic bags and are also reusable and very cost-effective. Below you will find more ideas for producing a product for informed consumers:
- Production of reusable drink straws
- Cruelty-free cosmetics that do not use any laboratory or natural animals.
- Vegetarian-friendly clothing (without the use of animal skins)
2- Pet owners
According to a 2019 study, the cost of pet businesses in the United States is estimated at $ 75 billion. So there are many opportunities to develop a niche market in this area that can be accessed based on the type of pet or lifestyle.
Patricia’s Couture, for example, prints photos of your pets on products such as pajamas and pillows. Although most people keep dogs, cats, or fish at home, there are plenty of opportunities for other animals such as horses or turtles. Other product ideas for the niche market include:
- Remote control cameras for pet care
- Pet Tracking Products (GPS)
- Decorative products with photos of customers’ pets
- Organic food and treatment
- Clothing and accessories
3- Passengers
Online sales in tourism and travel increased by 10% in 2018, totaling $ 695 billion. The dramatic decline in air travel costs over the last 30 years and mobile phone consumers provide a great opportunity for business owners to identify their niche market.
Examples include business travel or sightseeing for telecommuters. People’s attitudes towards travel have changed so much that consumers’ environmental awareness has also increased compared to before. However, according to Booking.com, half of the people still have difficulty finding tourism options. It provides many opportunities for different brands to present their initiatives and products to consumers under environmental protection. Travelers are also more looking for natural and local options with good facilities.
According to CNN reports, by 2020, almost half of the UK and US workforce will be working as freelancers. In addition, the rate of children studying at home in 2017 is estimated to be about 40% higher than in 2014. It allows telecommuters to travel long distances to places of interest worldwide because of their jobs. Normative is a travel luggage company focusing on Digital Nomads. This issue can be seen in all company parts, from products to copywriting.
Other ideas that can be mentioned for travel enthusiasts are
- Generate mobile apps for content creators who are constantly on the go.
- Designing sports suitable for people who are always on the fly
- Generate special maps for people who want to gather their travel experiences
4- Enthusiasts of computer games (Gamers)
The term Gamer includes a variety of subsets such as mobile game gamers, game consoles, and computers. There are 2 billion gamers in the world who spend about half of their revenue on entertainment, so the value of this industry in 2018 is estimated at 140 billion dollars.
For example, Shazim Mohammad has launched his online store to provide services to computer gamers, which can be considered a billion-dollar job. Mobile games also account for 91% of the market, and with the entry of women into this market, we are witnessing the expansion and expansion of this market. In general, the niche market can be created based on the type of game (for example, first-person shooter) or the type of game console (for example, PlayStation 4). In general, useful ideas for producing niche products in the field of games are:
- Production of ergonomic products for long-term gaming (such as handles, special chairs, and goggles)
- Decorative stickers for consoles or gamepads
- Production of clothing on which the terms of the game world are printed.
- Accessories for mobile gamers
How does the niche market work?
The first step in developing a niche market is research. By researching a large market, one can determine which market segments are exclusive, expanded, or adding new components. After this step and identifying the components that can be developed in the market, check its profitability.
For example, consider someone who wants to start a home improvement business. There are many companies in the market in this field. But it is possible to think about the shortcomings in the market and introduce another niche marketing. For example, using environmentally friendly detergents that are not dangerous to human health can be an idea to implement a niche market in home cleaning.
If at this point, you realize that the proposed niche market has a good monetization position and there is not much competition in it, your idea will probably be a monetized niche marketing idea. Types of niche markets are defined based on various factors, but some of the most common factors for determining a profitable niche market are:
Values and Beliefs
Some people rely on their values and beliefs to develop a niche market.
Interests and habits
Some people cultivate and develop the idea of a niche market based on their interests and habits.
Geography
Geographical location is another factor that influences the definition of a niche market. For example, selling certain seafood is a niche market idea specific to coastal areas and close to the sea.
Price
Price is another factor in the development of a niche market. The price of a niche market prerequisites and supplies is a factor that can directly impact its selection.
Income
The profitability of a niche market is an important factor that helps us in choosing it. If you have several ideas in mind, look to develop an idea that generates more revenue.
Quality
The quality of a small business in niche marketing is a determining factor in choosing people.
Advantages and disadvantages of niche markets
There are many benefits to niche markets:
- Less competition
- Focus the business on a specific segment
- Provide expertise
- Establish the concept of brand loyalty
With the development of a niche market, the main focus of the business will be on a specific segment of that market. Therefore, customers in that particular market segment will be attracted to you. Due to less competition, progress in that area is more likely.
Providing expertise is another advantage of niche markets. Because people in these markets focus on a specific segment, they specialize in the same area, and thus their performance in providing products and services improves.
Establishing the concept of brand loyalty is an important advantage of niche markets. Because there is little competition in this market and people specializing in a particular field provide services and products, customer satisfaction will increase. They will have more loyalty to the brand and product or service.
But niche markets have a major drawback. You may focus too much on a product or service in one area in a niche market and stay away from market changes. Market downturns also hurt niche markets because their services and products are in a particular area. Niche markets do not require much investment and are easier to enter. So if you are profitable and this profitability is visible, more competitors can enter your business area, and having more competitors means fewer customers and revenue.
How to identify the right niche market for your business?
New or old e-commerce entrepreneurs must first understand the big market to identify niche markets and start niche marketing and product sales. Your niche market is a subset of that big market that helps you define the following:
- Product features that meet the needs of the market.
- Determining the price range of products
- Production quality
- Brand positioning
- marketing strategy
Choosing a niche market will make you less competitive in your business and enter the blue ocean. If you run an online store in a crowded market, you must compete with other big companies. So by focusing on the niche, not only will you no longer have to produce a wide range of products, but you will also face fewer competitors with a smaller market share.
Although no specific method has been introduced to identify the niche segment of the market. The following methods can be used for identifying great ideas:
Google Search
This way, you can get information about the products and trends of online businesses. Keep in mind that if a competing company operates in your niche market, you can still consider smaller segments of that market.
Creating a mind map
Using online tools such as Text2MindMap, you can organize your ideas and identify niche markets tailored to your business.
Use Google search engine suggestions.
Type in your field of work in Google to get familiar with related keywords. In addition, using tools such as Keyword Tool and Answer the Public, you will be able to identify all the keywords related to your business.
Keyword Research
You can easily use Google’s Keyword Planner tool after creating an account in Google Ads. To do this, enter your main niche idea in it and use the suggested words by adjusting the geographical location and other filters. People who do not have a Google Ads account can also use the Keywords Everywhere plugin.
Follow social networks
You can always follow trending topics on networks such as Instagram, Twitter, Facebook, Reddit. In addition, you can follow the hashtags on Twitter and Instagram to find out the special interests of users.