While products that have set out to cater to a specific niche have always existed, since the advent of the internet it’s become much easier for businesses looking to go down this route to become successful.
Despite seemingly ignoring large swathes of the market, these kinds of businesses can enjoy long-term growth by catering to a demographic outside the grips of the biggest companies.
Identifying your niche
The first thing you need to do is identify your niche. This could be a specific gender, age group, or type of consumer. Small brands often try and market themselves at a higher price point than larger competitors, advertising their value on a boutique aesthetic. However, it’s also possible to go in the other direction. citizenM bases its business model around offering luxury hotels at affordable prices. Consumers that feel as though they are underserved by the mainstream market will not only be much more receptive to new products and services, but they’re also more likely to be loyal to brands that they’ve had good experiences with. Getting in on a market early on could be your opportunity to really cement your place in this industry.
Stand out from the crowd
Even in seemingly small markets, it’s not surprising to find competition, especially on a global scale. Like any business, you’ll have to find a way to stand out from the crowd. One of the best ways to do this is to create a unique corporate culture that resonates with your target market. For years, Google’s corporate motto was “Don’t be evil” and the company played on its likeable image with everything from its colourful logo to its quirky office culture. This kind of approach will take time as it requires you to stick to a holistic vision encompassing everything from employee recruitment and marketing to your overall business strategy.
Understanding global markets
Finally, if you want your business to succeed globally you’re going to have to take the extra time required to understand different global markets. Not only might this mean employing bilingual staff who can head up the marketing division in countries which you think you have a better chance of succeeding, but it also means carefully analyzing the current climate and consumer demand in these countries. For instance, when Toyota Motors launched its Lexus line of vehicles, they’d determined that there was a gap in the market for premium vehicles at a lower price than competitors like Mercedes and BMW.
See also: Find a niche… and fill it – Businesses don’t have to be based on global blockbusters. You can still make lots of money by in-filling and selling to companies too big to spot the gap.