do you know what a niche market is? Do you know what detecting yours can make your business successful?
In this article we explain what a niche market is and how choosing the right one is one of the key factors for your business to be successful or not. Read on so that you don't have any doubts!
what is a niche market?
A market niche is a segment or part of the market with its own particularities and characteristics, made up of an audience with common interests. In other words, it is a very specific part of the market made up of a small number of people or companies that share similar needs and characteristics.
To make this definition easier to understand, here is an example: a niche market would be sustainable women's underwear, because niche markets represent a small part of a segment of the market itself, which is why it is sometimes confused: the market would be "women's fashion", the segment "sustainable women's fashion" and the niche market would be "sustainable cotton underwear for women".
It is important to understand that in order to be considered a niche market, certain characteristics have to be fulfilled, which are the following:
- it is a small group of people, companies or brands, which are related to the market segment to which they belong.
- it must be of a considerable size to be profitable, i.e. the number of consumers must be sufficient to provide profitability for the company.
- similar needs and desires, i.e. the public needs, wants or desires similar products or services.
- the audience must be willing to buy those specific products or services, i.e. they must be willing to pay a little more to get their needs met.
- normally, niche markets have few competitors, so that only a few companies are in charge of satisfying the needs of that audience.
- the products or services are usually considered premium or exclusive because the demand is not so high.
how to choose your niche market?
You already know what a niche market is and what are the key characteristics it has to have to be one. Now we tell you what steps you have to follow to correctly detect your niche market, because as we mentioned at the beginning of the post, this can make the difference between success or failure.
find out which market you want to be present in
The main thing is that you are clear about which market you belong to and which subject you dominate. Continuing with the previous example, if you are specialised in women's underwear and you want to enter the niche market of "sustainable cotton underwear for women".
You have to go for a business that you like and in which you are an expert. Many failures are caused by going for a market that is on the rise or has a large volume of competitors.
identify people's interests, needs and problems
Once you are clear about what your company does, it is time to investigate the needs, problems and interests of the public. It is important that you study what interests the people who are going to be in the niche you want to enter.
Through keywords you can get to know in depth the interests of the audience, as you find out what they want from their searches on search engines, such as Google. Enter the terms related to your idea and observe the results.
You also need to identify the problems your audience has so that you can address them with your product or service.
look at supply and demand
The main thing is that when choosing a niche market you have to be clear that there is a demand for that product. If you have detected that there is a problem and an interest in the product or service you want to launch, go ahead. Remember that your niche market must be based on a real problem, or else you will have no demand from the public and your business will fail.
Here we go back to using keyword research tools, where we look at whether your business is in demand from the audience.
analyse the competition
When we told you about the main characteristics of a niche market, we mentioned that it should have few competitors. If there is too much competition, it will be difficult for you to succeed.
When you are looking to enter a niche market, ideally there should be no or very few companies within it. You are looking to cover a need or problem that was not covered by other brands.
focus on a specific audience
A niche market is a very specific segment of the market, so it does not make sense to target a mass audience.
At this point you have to create the profile of your buyer persona or ideal customer, who is the one who is going to buy your products. This profile will define your target audience and all the strategies you carry out will be focused on them.
Continuing with the example, you should create a buyer persona who is a woman, interested in sustainability and the environment, who cares about the quality and materials of her clothes, etc.
determine their profitability
Before launching into the adventure, check that your business is going to be profitable.
You have already investigated, thanks to the keywords, the demand and volume of the audience. Ideally, it should not be a very saturated niche, but neither should there be products, because then it may not be of interest. If you have observed that there is a considerable amount of demand, then you can consider investing. Research and analyse the market to see if it will provide you with the profits you expect.
Throughout this text you have seen that it is necessary to follow the steps to find your niche market before launching into the adventure, first so that you do not spend energy and resources in vain, then so that you find your ideal audience, and finally, by having less competition and a well-defined audience, you can become a reference in that sector.
we hope you've enjoyed this read!