Josephine O. Edwards Guest Writer
If you run a business or startup or plan to, you should have come across the term “niche marketing.” It is the current trend of the business world, and almost everyone seems to be focusing on niche markets.
But what are niche markets? Are they really all they are said to be? Are they worth investing your time and resources into?
Well, we will be discussing all these in this article. So let’s get started.
What are Niche Markets?
Before you can decide on if to invest in something or not, you must first learn what it is.
Niche markets are a smaller part of a broader market that cater to the specific needs of their target clients. They are usually characterized by the unique preferences that distinguish them from the other parts of the broader market.
Take, for instance, the women’s shoe industry. There are many niche markets in it. You can find a business that deals only in nurses’ shoes, while another might sell only to plus-sized women.
Niche markets exist in every large market. Being able to create a niche for your business depends on your levels of education, innovation and adaptability. Usually, niche markets are carved out based on the following criteria
- Psychographic (the values, attitude or interests of the target market).
Focusing on a niche market is a good business strategy. It helps you solidify your customer base much faster than those who sell to the entire market.
How to invest in a niche market
Currently, there are several niche markets already. So how do you create one for your business or startup? Here are some tips on how to do just that
- Determine what your strengths and weaknesses are: What’s your business’ unique selling point? What is your startup good at, and what is it poor at? Once you answer these questions, you are on your way to finding your niche market.
- Carry out industry research: A critical point of any business plan is to identify who else is in the industry. Unless your product or service is an innovation, the first of its kind, someone else is probably already doing it. So you should make sure to understand your competition and see how to best distinguish yourself from them.
- Research your target customer: Who are they? What do they like or dislike? What do they need? If you can answer these, an image of your ideal customer begins to form.
- Test the waters first: Just because you think your product is excellent does not mean others will too. You should carry out short tests with your marketing strategies, to see how responsive your target customers are. If the tests go well, then that’s fine. If not, readjust and retest.
To get you started, here is a list of some of the more popular niche markets to invest in.
- The LGBTQ+ Community
- Building wealth through investments
- Making money online
- Beauty Care
- Gadgets and technology
- Personal Finance
Investing in niche markets can be quite profitable as long as you do it right. And what’s more, it is a low-risk business move that yields maximum profits. You should try your hands at it as soon as possible.