No doubt you will have heard the term “niche market” being used in the business world, but what does it mean? And why should you take note of it?
By Craig Falck at Africa Report
The Oxford dictionary defines a market as the place to promote and sell products or services, and the term ‘niche’ as a specialised but profitable segment.
When you combine them, you are left with a highly specialised (read: specific) part of the market that will subscribe to your services and product.
Times have changed and thanks to technological developments and demand, people are no longer forced to watch one television channel, drive one model of car from two or three motor vehicle brands, or buy one style of clothing. Diversity prevails; we have choices; so many, in fact, that we often become confused by what is on offer.
This is where niche markets are created: someone experiences that “light bulb” moment, where they are able to identify a portion of the market that is demanding something unique that no one else is offering – when the market dictates a change from the usual but only on a smaller scale. Because of this specific need, regular pricing doesn’t apply – at least to a certain extent – and a premium price can be charged. If the retailer decides to maintain a similar pricing structure, they will often experience an increase in sales, therefore making sure that they have enough supply to meet the increased demand.
It doesn’t matter what business you’re in, they all contain niche segments that need to be identified and be, for a lack of a better word, exploited. If you’re serious about your business, you want it to perform as well as possible, to make as much profit as possible while providing the best product or service available. You don’t want to be left behind by your competitors who have spotted a gap, taken the risk and now control the biggest share of the market. You need to conduct research and take note of trends overseas, watch your competition to see what they are doing and then do it better. Niche markets are special and should be treated as such. With the opportunity of being unique comes the risk of being too innovative and somehow inaccessible to customers. One has to find something everybody will want and need without ever thinking about it. Apple is the perfect example of such incredible success. They keep on creating products that no one thought of before and market them as such.
To sustain innovative ideas, make sure that quality and customer service follow. Don’t be just unique. Be unique and exceptional! Good Luck!
