A niche market is a place of exchange that is addressed only to a small committee of people associated with profession, geographic region, style, age or even activities and habits.
The market structure is characterized by a small number of suppliers, which means there is little competition.
A niche market is considered profitable when there is sufficient demand.
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Various characteristics can define this type of exchange. The same product can exist in both mass market and niche market. For example, car cleaning is practiced in a large market, but dry cleaning, which is more ecological, becomes a niche market.
Another example: If ready-to-wear is a large market, aiming for the largest numbers, more specialized clothing may carve out a niche. We find there the costumes of Gothic communities or participants in the “old” distinctiveness.
Advantages of a niche market
The advantages of entering a niche market would be less competition and the potential for resonance to create higher margins.
Expertise allows you to be closer to the sometimes unsatisfied needs that can be found in an area. You need to be where the most influential competitors are inert or unable to offer a service or product to the public concerned. There are still quite a few ideas that still have a high potential clientele.
niche market beliefs
There are beliefs that a service or product that has not previously been brought to market would not be a good idea or would be unprofitable. But people in niche markets expect a different offering. Large competitors are often unable to meet this expectation.
Technical clothing, for example, may be accompanied by knowledgeable advice and intervention from experts in the field. This will make you a well-known person in this market. Thanks to your intervention and the relevance of your targeted expertise, you will allow your customers to feel truly supported and considered. By identifying yourself 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 run the risk of limiting your prospects and the “virality” effect that a large number of customers implies. The result of all this will not allow you to reach the expected income.
Your idea should not be extraordinary. It only has to respond to a marked shortfall in the market. The demand for the requisite quality should be met and special attention should be paid to communication, which should be different from others.
Your satisfied customers will know how to make your segment go viral. You are in a niche market, so you are potentially selling for a higher price and you will be attracted by the lack of a product or service.
You will be able to differentiate the elements that set you apart from your competition. Trust your prospects. They will build your success with you.
How to find your niche market?
To establish yourself in a specific market, you must have the right idea! To be successful you need to find a unique, distinctive and original market segment.
The first thing to do is to clarify what you want to sell, realizing that you can’t make an offer that pleases everyone. If you are thinking of selling a service related to you, then you will enter the market related to your skill. Make a list of your strengths and resulting strengths.
If you’re going for a product, list competitors and what they offer. Imagine the part of the market that most people have missed.
To find your niche, you can consider the following five things:
You can start by targeting specific customer needs that are not being met by competitors. This implies a sufficient information clock. Thanks to the Internet, this job has become easier.
If we take the COVID-19 crisis as an example, you can look at everything that will facilitate, simplify or help people who practice teleworking. Furniture, time management equipment, coaching, ergonomic equipment. Anything to get in touch with us…
Benefit Your Customers
Today a client may leave you on sight. Niche also means going beyond the competition. Listen to your customers and provide them with benefits they currently won’t find with any other provider. Don’t wait for them to claim it. Be reactive and take the guesswork out of it.
For example: exclusive insurance options on credit cards, trips dedicated to science, an ultra-high-end VTC service, contact up to 400 customers/month…
Contact up to 400 clients/month
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This is a very interesting element that makes it possible to find market segments to turn into niches. Examine products aimed at a specific age group.
Today the market for seniors, also known as the silver economy, is growing rapidly. This ever-increasing public is in demand both for attention, innovation and their well-being as well as their ability to spend a lot for leisure activities. For example, we may find sports equipment for seniors, applications intended for friendship, meetings organized for seniors or other trips.
To find your niche market, you can turn to customers of enthusiasts. Your goal is to find the product that appeals to lovers of the great outdoors, to kayakers or those who would give everything for their pet.
Here are some examples of products aimed at enthusiasts: lightweight and durable footwear for hiking enthusiasts, tuning accessories for bicycles, educational games for animals, and more.
The use of psychological value is an important distinguishing factor. Whatever the reason, many people only work in search of financial gain.
For this purpose, there are online education services that provide access to affordable tutorials for school children or students who cannot afford private lessons.
Guaranteeing the success of your niche market
To attract potential customers to your niche market, you must produce accurate, relevant and informed content. You are talking to prospects who know their topic, so they will be more demanding.
If they find mistakes, if they’re disappointed with the behavior or a product that doesn’t meet their expectations, you’ll lose their trust. Provides instant access to digital information and it spreads like wildfire. Your reputation is at stake and you run the risk of losing your credibility. This would be extremely damaging in a market as small as a “niche”.
If you want to build a business in a market you know very little about, take the time to inform yourself and train yourself beforehand. In fact, niche market implies that you are an expert in your field or that you know your target and the products they need.
Pay attention to the information you give to your prospects by being very precise and efficient in your data.
Support them on their buying journey. You can do this face-to-face, by phone, with guides, articles, demonstration videos… You can hire a professional writer to produce your content.
Be honest when setting your prices. If your goods or services become too expensive, you run the risk of pushing your customers into the arms of the competition. Unless you’re really the only one in 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 it is not a quality product or service. Be a judge
Pay attention to your communication. Links with your customers or prospects should be maintained. Automatically register your prospects and customers in a database that you will update regularly. Send follow-up emails, broadcast 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 fueled the sector and as long as you have what local has to offer, you have a place of sustainable development.
The past few years have seen the development of craft beer production with the promotion of exchange and meeting spaces where you can learn to make your own beer.
With environmental concerns inhabiting more and more populations, organic products remain a niche market. In the same approach, we find the evolution of structures where we buy our food by weight to limit plastic waste and wastage.
Health is proving to be a booming market. In the bottom, we find products selling gluten-free.
Animals are also a part of it. Consumers are buying more organic foods for their hairballs. They are also inclined to equip their dogs and their cats with various accessories. This includes everything from clothing to Christmas or Halloween costumes. Not to mention educational toys and other massages or educational sessions.
Conquering a niche market is not always easy. You have to be more professional than ever, because you’ll have people in front of you who know a lot about the topic you’re going to propose to them.
However, your efforts will eventually pay off because you are targeting buyers who need the services and products you provide. So you are meeting a need and the consumer is only asking for that!
Our Tips for Getting Started in a Niche Market
Entering a niche market is a bet that can pay off if the odds are in your favor.
Who says niche market also has specific needs. In order to get a site, an application or very specific support for your company that relates to the specifications of your niche market, find the best freelancers on Codeur.com who can accompany you in the launch of your project.