What is a Niche? Niche Market Examples
These days, pretty much anyone can create their own online business or side hustle in a matter of minutes. While this has opened up endless possibilities for entrepreneurs in many different fields, it also means that the marketplace is more flooded with competition than ever before. That’s what makes niche marketing so important when you are establishing a new business.
Before you figure out what type of product or services you intend to offer, you’ll need to choose a larger market to work within. Chances are you may already have an idea of what field you want to serve, be it pet owners, hairstylists or art collectors. No matter what market you choose, your business offerings could theoretically appeal to any number of different types of people within that market. However, when you try to appeal to everyone, you end up getting lost in the shuffle among bigger, more established businesses and those who serve a specific niche market.
If you want what you’re selling to stand out, you first need to find a gap in the market that is not being served. If you can develop something that people need that doesn’t already have a strong competitor, you have the potential to become the market expert on that niche. When you establish your niche market and target audience, you can use targeted marketing to deliver your message directly to your ideal clients in a way that will appeal to them.
In order to help you learn how to use niche marketing for your new business, we’ll go over niche market meaning, how to find a niche, and examples of niches that your business can serve.
What is a Niche?
A niche market is a specific portion of a market that is united by a common interest or demographic. For example, niche markets within the clothing industry could include children’s clothing, athletic wear, or outerwear. An even more specific niche market could be children’s athletic wear, or athletic outerwear, or children’s outerwear. The more detailed you are about your niche market’s demographics, values and shopping habits, the more you will be able to tailor your products, services, and brand messaging to them.
Once you’ve researched and selected your company’s niche market, every single choice you make should be designed to serve that market, from designing your logo to building your website. By positioning your business in a niche market, you become the big fish in a small pond, as opposed to trying to reach every demographic, stretching yourself too thin, and failing to excel at anything that you do.
In order to develop your niche marketing strategy, you’ll need to determine a number of qualities about your ideal client. Do you want your brand to be associated with high cost, high-quality luxury items, or are you targeting an audience who wants affordable value? You can do research on niche markets that are related to yours in order to find out information about your potential customers, like age, gender, and location.
While demographics are a great place to start, your niche market will not be focused enough if you are only paying attention to the surface details of your audience, and not taking their values into consideration. For example, if your niche is vegan leather goods, then your audience might be interested in vegetarianism, animal rescue, and sustainable living. By identifying those features, you will be able to create better, more specific brand messaging that will allow your ideal clients to feel a moral connection to your company, in addition to needing or wanting your products. Alternatively, if you’re serving a niche market as a freelance writer who specializes in self-help, your audience will probably value openness and honesty in your brand messaging and identity.
While there are any number of potential niche markets, not all will be profitable. Do your research and find out the size of the market and potential earnings before you incorporate your business or attempt to secure funding. If you’re not sure what niche market to get into, start by browsing other niches within your broader industry to get ideas for what the marketplace may be lacking.
Niche Market Benefits
To a new business owner, it may seem counterintuitive to narrow down your client base and only attempt to serve a small fraction of the market. However, you’ll never make an impact in the market if you’re offering the same products or services as everyone else. Instead, when you focus on a small portion of the population and really pay attention and listen to what they want and need, you’ll be able to position your business as the go-to for that given niche market.
A great place to get to know your niche market is on Facebook groups or Instagram hashtags. Spend some time browsing to see what your potential customers are talking about, where they hang out online, and any other information you can get from them, like their shopping habits and what makes them decide to commit to a purchase. Meanwhile, take note of some of the smaller hashtags (under 1 million) to use in your social media marketing. When you use the most popular hashtags, your content is way less likely to be seen by your niche market, so get as specific as possible to get your posts trending.
A common practice in niche marketing is to pay attention to the words and phrases commonly used by your niche market and repeat those terms back to them in your marketing. For example, if your ideal customer is a new mom who loves chatting with her mom friends about how much they need a coffee, make sure to include a quip about that in your next Instagram post. You might be surprised how much of an effect it can have on a potential customer to feel like their needs are being anticipated.
Niche marketing will enable you to get to know who you are talking to, and use that information at all times when writing your sales funnels or website copy or creating your business plan. If your niche market is health food enthusiasts, find out what their other hobbies or interests are to get an idea of brands you can partner with. For example, if your health food niche also loves craft beer, you could partner with a local brewery to reach each other’s niche markets.
Marketing to a specific niche can enable you to address a specific need that is being overlooked in the market by other, more established businesses. If your business is a success, your brand could become an established professional in your niche market. Then, even if larger brands decide to get into your niche, you will still have been the first to reach that market. Just because you start out servicing a very specific niche market doesn’t mean your business won’t be able to grow, though. Once you are established in your niche market, you’ll be able to expand into larger markets if that’s where you want your business to go.
Examples of Niche Markets
It’s not enough to just have a basic understanding of your potential client’s demographics. You need to actually understand them on a deeper level in order to deliver messaging that converts viewers into paid customers. The more specific you can get about your niche market, the more likely your business is going to stand out to consumers. If you try to launch your business in a market that is already overcrowded, it will be much more difficult for you to stand out, especially when you first get started and don’t have any customers.
If you don’t already have an idea of the product or services you want to sell, start by thinking about what larger market you are interested in. Chances are you probably already have some idea of whether you want to go into apparel design or event planning, and niche marketing techniques can be applied to pretty much any field. Here are some ideas for larger markets and the niche markets within them that you could focus on serving.
Pet owners spend thousands of dollars on everything, from food to toys to animal costumes. Maybe you want to design pet-themed apparel. How will you make your designs and overall brand identity stand out from all the rest? While pet-themed apparel is already a niche market, you can get even more specific. Why not focus exclusively on bulldog-themed clothing? That way, when a bulldog owner or enthusiast takes to the search engines, they’ll see that you are entirely focused on the product they’re looking for while other companies aren’t going to the trouble of fulfilling their unique need. Just make sure that there is enough potential for earnings in your niche market before you commit to something too unique to reach a sizable audience.
With the rise in popularity around miniature homes, intentional buying and minimalist style, many people are interested in DIY options for creating more storage or in hiring a professional to help them get their space in order. What if you focused specifically on helping university students organize their dorm rooms or shared housing to make the best use of their small spaces? Your client will likely have less money to spend and may be more interested in projects they could do for a low budget. Alternatively, you could become a professional home organizer who focuses on serving high budget clients who need a picture perfect living space that also manages to keep the home tidy.
Most people think they could be in better shape, and now that so many are doing video workouts from home, it’s easier than ever to become a personal trainer. But will your niche market be busy professionals who only have a small chunk of time to devote to fitness and need to make it count? Or will you serve pregnant mothers looking for great stretches and strength building exercises that won’t disturb their baby? Whatever niche market you decide on, address their specific needs in your marketing campaigns so that potential clients know that this is your area of expertise.
Travel and Tourism Industry
With so many budget airlines and low-cost alternatives to hotels, the travel industry is booming. If you want to focus on finding the cheapest flights, your niche market could be students travelling to and from their universities. Then every single message your company releases, from Instagram posts to your email newsletter, should be focused on addressing the specific needs of your target audience. Alternatively, maybe you live in a city with a lot of tourism, and you want to offer unique activities while they are on vacation. You can get specific by deciding to focus on whatever you’re interested in: athletic sightseeing, a tour of the local art scene, or the best restaurants for local foods.
Now that you’ve established the niche market that your business will be serving, you’re ready to start your new business with a bang. Choose a business structure that makes sense for the niche market you are operating in and register your business, and you’ll be ready to take your niche market by storm.
Ready to start your business? Ownr has helped over 15,000+ entrepreneurs hit the ground running quickly – and affordably. If you have questions about how to register or incorporate your business, give us a call at 1-800-766-6302, Monday through Friday from 9 am to 5 pm EST, or email us firstname.lastname@example.org
This article offers general information only, is current as of the date of publication, and is not intended as legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. While the information presented is believed to be factual and current, its accuracy is not guaranteed and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the author(s) as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by RBC Ventures Inc. or its affiliates.