Finding your Niche Market
What is a niche market and why is it so important? A niche is a smaller segment of an already profitable larger market. It targets specific needs, ergo targeting consumers accordingly within a market with minimal competition. Targeting a niche means that you are already embarking on business within a profitable market, but taking a varied approach.
Consider what you, as a consumer believe is in demand according to what services or products are lacking in your own life. Is there a large market for a product or service you wish to sell? If not, you may have an innovative business idea to pursue. Pursuing niche markets is a great way to ensure that your business won’t fall short of an influx of regular clientele and new curious consumers.
An element to maintaining success is to develop unique marketing strategies. Create a sense of intrigue within your business, one that informs customers that they can only receive this product or service, or a superior standard of your product or service, from your business alone.
Fortunately in today’s day and age, there are endless opportunities and platforms to profit from even the most eccentric goods. Sites such as Etsy have proven to be platforms that can create powerful brands.
Embarking on a business idea via a platform such as Etsy, may seem simplistic and fool proof, it is in fact more tedious than one might perceive it to be. Due to the popularity of these platforms, even unique or handmade items appear sub-standard due to over saturation of certain products. If a product isn’t particularly outstanding, or well-advertised and marketed, you’re unlikely to make profit. To generate sales, create a sense of professionalism. Meaning, use professional photographs and create a consistent, high quality aesthetic. Put effort into personalised descriptions, and list shipping timing, whether or not you allow exchanges or refunds, etc.
A niche market that small businesses are profiting from are the lack of distinctive, handcrafted products when it comes to artwork, home wares, clothing, jewellery, etc. Mass production of these goods means that consumers usually have limited availability to affordable yet unconventional products.
Also keep in mind, that regardless of how well made, well priced, unique or beautiful your products are, that if they are not efficiently marketed and endorsed then people will simply not see them and profit won’t be made. This is where free social media sites such as Instagram or Facebook need to be taken advantage of.
Initially, supply a wide range of products, then take note of what products generate the most sales. Once you can see a clear preference, you can hone your creative abilities to putting effort into a distinctive brand, and you’ve found your niche market.
What other steps can you take to find your niche? A useful, and free tool you can utilise is Google’s External Keyword Tool. You can type in keywords, and if it generates around 1,000-3,000 searches per month then you’ve found yourself a profitable market. Any less is a market that likely isn’t in demand, and many more is usually a market that is already over saturated. You can then use your chosen keyword in a simple Google search, and view which businesses are most affiliated with that keyword and subsequently investigate your competitors, particularly if there aren’t many paid ads showing up, it is likely a market with little competition.
Lastly, combine your specific interest with existing trends and markets. This will ensure that the niche idea you pursue is one you have genuine interest in, as well as one that you can monetize.