A niche market is a place of exchange that is only addressed to a small committee of people linked together either by profession, geographical area, style, age or even activities and habits.
The market structure is characterized by a small number of suppliers, which implies that there is little competition.
The niche market is considered profitable provided there is sufficient demand.
Different characteristics can define this type of exchange. The same product can exist both on a mass market and on a niche market. For example, car cleaning is practiced in a large market, but dry cleaning, which is more ecological, specializes and becomes a niche market.
Another example: If ready-to-wear is a mass market aimed at the greatest number, more specific clothing can constitute a niche. We find there those participating in the clothing of Gothic communities or the “vintage” specificity.
The advantages of a niche market
The advantages of entering a niche market will be less competition and the possibility by resonance of making higher margins.
Specializing allows you to be closer to the sometimes unsatisfied needs that can be found in a sector. You have to be where the most influential competitors are in inertia or unable to offer a service or product to the audience concerned. There are still quite a few ideas for which there is still a high potential clientele.
The beliefs of niche markets
There are beliefs that a service or product that hasn’t been brought to market before would not be a good idea or would be unprofitable. But people in niche markets expect a different offering. Big competitors are often unable to meet this expectation.
Technical clothing, for example, can be accompanied by knowledgeable advice and the intervention of specialists in the field. This will make you the go-to person in this market. Thanks to the relevance of your intervention and your targeted expertise, you will allow your clients to feel truly supported and considered. By identifying with your group, your customers will participate in enhancing your brand image.
Another belief to forget, the one that makes you believe that if you are satisfied with a market segment, you will not be able to win financially. You also risk limiting your prospects and the “virality” effect that a large number of customers implies. The result of all this would not allow you to reach the expected income.
Your idea doesn’t have to be exceptional. It just has to provide a response to a marked lack in a market. The demand for quality that is expected must be met and pay particular attention to communication, which must be different from that of others.
Your satisfied customers will know how to make your segment viral. You are in a niche market, so you are potentially selling at a higher price and you will be attracted by the scarcity of the product or service.
You will be able to make the difference with elements that differentiate you from your competition. Trust your prospects. They will build your success with you.
How to find your niche market ?
To establish yourself in a niche market, you need to have the right idea! You need to find a unique, specialized and original market segment to succeed.
The first thing to do is to clarify what you want to sell, realizing that you cannot make an offer that will please everyone. If you are looking to sell a service related to you, you will enter a market related to your skills. Make a list of your strengths and the resulting strengths.
If you are going for a product, list the competitors and what they offer. Visualize the segment of the market that the most people have missed out on.
To find your niche area, you can consider the following five things:
You can start by targeting specific customer needs that are not being catered for by competitors. This implies a substantial information watch. Thanks to the Internet, this work is facilitated.
If we take the Covid-19 crisis as an example, you could look into everything that would facilitate, simplify or help people who practice teleworking. Furniture, time management tools, coaching, ergonomic tools. Anything to keep us in touch…
Bring benefits to your customers
Today, a client can leave you as quickly as it appeared. The niche also means going beyond the competition. Listen to your customers and offer them benefits that they will not currently find with another provider. Don’t wait for them to claim. Be reactive and anticipate.
For example: Specific insurance options on a credit card, trips dedicated to science, an ultra-high-end VTC service, contact up to 400 customers/month…
This is a very interesting element that makes it possible to find market segments to transform into niches. Investigate products aimed at a specific age group.
Today, the market for seniors, also called the silver economy, is growing rapidly. This ever-increasing public is both in demand for attention, novelty and the ability to spend quite a lot for their well-being as well as their leisure activities. We can find, for example, sports equipment for seniors, applications intended for friendships, meetings or other trips organized for seniors.
The enthusiast segment
To find your niche market, you can turn to a clientele of enthusiasts. Your goal is to find the product that appeals to lovers of the great outdoors, kayakers or those who would give everything for their pets.
Here are some examples of products aimed at a target of enthusiasts: Light and durable shoes for hiking enthusiasts, tuning accessories for bicycles, educational games for animals, etc.
The use of psychological price is an important distinguishing factor. Whatever the reason, a number of people only function by seeking financial advantage.
For this purpose, there are online education services that provide access to affordable tutorials for schoolchildren or students who cannot afford private lessons.
Guarantee the success of your niche market
To attract potential customers in your niche market, you must produce accurate, relevant and informed content. You are talking to prospects who know their subject, so they will be more demanding.
If they spot mistakes, if they’re disappointed by behavior or a product that doesn’t live up to their expectations, you’ll lose their trust. Digital gives immediate access to information and it spreads like wildfire. Your reputation is at stake and you risk losing your credibility. This would be extremely detrimental in a market as small as that of a “niche”.
If you want to create a business in a market that you know little about, take the time to inform yourself and train yourself beforehand. Indeed, the niche market implies that you are an expert in your field or that you know your target and the products they need.
Focus on the information given to your prospects by being very precise and efficient in your data.
Accompany them during their purchase journey. You can do it face-to-face, by phone, with guides, articles, demonstration videos… For the production of your content you can call on a professional editor .
Be honest when setting your prices. If your items or services turn out to be too expensive, you run the risk of pushing your customers into the arms of the competition. Unless you are really the only one on the market, pay attention to the quality/price ratio. The opposite can also be negative. When the price is too low, the customer may think that it is not a quality product or service. Be fair.
Focus on your communication. The link with your customers or prospects must be maintained. Automatically register your prospects and customers in a database that you will update regularly. Send follow-up emails, transmit useful content, encourage them to follow you on social networks…
Some examples of niche markets
The Covid-19 crisis has made it possible to develop a number of niche markets, particularly in the artisanal food industry. The return of “homemade” has boosted the sector and as long as you offer local, you have the niche of sustainable development involved.
The last few years have seen the development of craft beer production with the promotion of a place of exchange and meeting where you can learn to make your own beer.
With the environmental concerns that inhabit more and more populations, organic products remain a niche market. In the same approach, we find the development of structures where we buy our food by weight to limit plastic waste and wastage.
Health is proving to remain a flourishing market. In the niches, we find the sale of gluten-free products.
Animals are also part of it. Consumers are buying more organic foods for their hairballs. They are also more inclined to equip their dogs and their cats with various accessories. It ranges from clothing to Christmas or Halloween costumes. Not to mention educational toys and other massage or educational sessions.
Conquering a niche market is not always easy. You will have to be more professional than ever, because you will have in front of you people who know a lot about the subject that you will propose to them.
However, your efforts will eventually pay off as you are targeting buyers who need the services and products you offer. So you are meeting a need and consumers are only asking for that!
Our tip for getting started in a niche market
Entering a niche market is a bet that can pay off if you put the odds on your side.