what is a microniche and which one is the most beneficial for my business?
But first, what is a niche market? Before going into the world of micro-niches, the first thing is to clarify what a niche market is in order to be oriented to the subject. The first thing is to make it clear that although many entrepreneurs do it, using niche market and market segment as synonyms is a blunder, here we will see why.
A niche market is primarily a small part of a market segment that is partially or totally underserved and behind it is a large group of consumers whose needs are not fully met.
In short, it is a group of either companies or individuals who are not being fully served, are not being offered what they want or are hardly offered what they lack.
To define these groups we can say that they are not very large groups of people, i.e. they are small groups that can perfectly well participate actively in the market and are willing to do so if given the opportunity, they only need to find what they are looking for. This is a very important characteristic of the niche market, if those affected are not willing to buy the product offered to them, we would not be talking about a niche market, but about a segment of it.
This branch of niche markets is very broad, as there are many of these in different sectors, which provides a magnificent opportunity for companies to cover these needs, offering a product to a sector that needs it is a sure hit, but you have to know how to find the niche or children over time and satisfy it before the competition does. This would be a perfect formula for success.
Micro-niche markets and their benefits
Now that we are clear about what a niche market is, what we are going to go on to define is what we mean by a micro-niche market. Going one step further within the niche market, we could define micro-niche as the even more specific needs that exist within a niche. These, of course, are even more difficult to satisfy and the unsatisfied public is much smaller. There is also less competition, much more than in the niche market, but because fewer people are looking for it and it is so specific, people are much more likely to buy that product than in the niche market.
Now, to check that we have understood both terms, let's use a very simple example that will help us to clear up any doubts. Within the "underwear" market, a market segment would be "women's underwear", a niche market would be "bras" and a micro-niche market would be "women's sports bras". With this example we can now structure in our heads the difference between market segment, niche market and micro-niche market.
As we progress in these terms, the interested public and the companies that have the desired products become smaller and smaller, but this does not mean that the number of customers is not sufficient. This is the most important thing, to find out whether the market is big enough to know whether I should as a company focus on it or not.
Not all niches and micro-niches are specific products like the women's sports bra in the example above, they can also be thematic like "summer prints", whether the product is a skirt or flip-flops, what the public is looking for is something that contains that specific print.
Great, but how do I know which microniche is the most beneficial for my business?
When focusing our business on a microniche market, it is true that a priori it may seem something very negative because we are limiting the number of buyers to whom we want to sell, but this is quite the opposite since we reduce the number of potential customers but among those few customers with whom we stay we greatly increase the chances of purchase. Because when selling a more specific product or service, it is much more difficult for the competition to have it, apart from the fact that even if there are competing companies that also have this product, the customer will find it very difficult to find it.
To find the micro-niche market that best suits your business and that can be most beneficial for you, a series of factors must be taken into account:1. Target market
The most important thing is to set the market in which you want to act, choosing a market that is booming at that time just for that reason, is a huge mistake, it is better to take a risk and bet on a market that you know and in which you already have a consolidated experience.2. Ideas
For this you must get ideas about these microniche markets that as we said before will be much more beneficial for our business if they are from a market already known to us. For this we must use platforms like google or amazon, once we have several ideas in mind about microniche markets we must consult on the platforms whether or not there is a large supply of these specific products in order to get an idea.3. Calculating demand
There are several ways to obtain the demand for a product, but one of them is the volume of searches that have been made on the internet about that product, as some micro-niches that a priori seem to be a round business, have hardly any people interested in it at the moment of truth.4. Analyse the competition
To finish deciding whether a micro-niche market is for you or not, one of the factors that under no circumstances can you overlook is whether you are going to have competition or not, and above all how is that competition, are they bigger companies than yours, will it be very difficult to compete with them or will it be worth it, are they many or few?