A niche market is one wherein the product is uncommon and attracts only a relatively smaller audience in the open market. Most of the time, the customers are always quite loyal to the product, which keeps the niche market alive and surviving because in a market, even if the customers are less but consistent, the market is kept afloat. The producers are also termed as passionate in terms of their supply because they always are majorly specialized in their products and provide high-quality products to the customers of their niche market.
Definition of niche shopping
The niche market can be defined by its unique needs and preferences or identified as a segment of the larger markets. Niche shopping can be very fruitful for both the buyer and the seller because the customer gets exactly what they want, and the seller is supported by receiving pay for their produce. Niche shopping can be online or offline and due to technological advancement, can be done both ways. The age group is also not restricted as long as the product preferences are met by the shoppers.
How to do niche shopping
To shop niche, the factors taken into consideration for it should be:
- The price, which can include casual, sports, luxurious, or even moderate and discounted, fits into the criteria for various occasions. Niche shopping can be affected by the price and type of product the customer can avail of with a certain amount. Price-sensitive customers will choose their preference as a low-cost product.
- Demographics can also come into play when shopping niches like women, men or children, and even infants. Age or for income levels like students or luxurious for highly paid individuals. When niche shoppers have something in common, the seller profits from it.
- The quality level is also a good and reasonable factor to be considered, like for economical use or of premium quality. Customers also prefer handmade or locally produced, thus attracting a targeted but smaller group of interested and potential customers.
- Psychographics consist of factors like values or beliefs of various individuals and can be certain characteristics or attitudes of the consumers towards the seller’s product in the market.
- Geographics can also be a factor that can affect the choice of a niche for the first-time seller like a certain part of the country or even smaller segments like a city, town, and neighborhood. The thing to be kept in mind is that the target consumers must share a common taste or belief for the sellers to attract them with their single or few products.
Characteristics of niche shopping
- The niche market producers are few, and that automatically makes the products available in the market for the consumers also less or few. Therefore, the concept of niche shopping is majorly dependent on the size of the sellers and the consumers.
- The sellers of the niche market are specialists in their field. Therefore, the quality of products available is also without a doubt of good quality, making customer satisfaction a top priority in the market.
- The consumers of niche markets are also passionate buyers and do not get swayed by any existing trends or popular demand. They stick to the limited small market product available in their particular niche.
- New producers can begin a niche for themselves in the market by creating their demand as the go-to brand for targeted consumers. The said factor makes a certain demand because the consumers are already planned and targeted, thus creating guaranteed market demand.
Types of shoppers in a niche market
Niche shopping has a variety of groups of consumers, and a few of them are as follows:
This type of consumer is very particular about their attitude and stick to their beliefs, be it about health or even sustainability. The conscious consumers give rise to new trends or lifestyles like veganism, supporting local brands, and even eco-friendliness in terms of purchasing new items. In most cases, these conscious consumers increase the healthier or greener alternative, which benefits the small producers and even the environment in the longer run.
The pet owners have a strong bond with their pets and are always on the look-out for their pets’ best quality and choices. These consumers are consistent in purchasing their needed items and will not hesitate with the price of the item as long as they receive good quality in return.
- Other types of customers which a niche producer can target are gamers, homeowners, travelers, athletes, locals, occupational individuals, etc. Niche market shopping is a very common trait coming up in the market where new sellers who enter the market are looking for customers who will potentially purchase their products and not be swayed by any trends but rather become loyal and consistent buyers of their produce. Creating a niche market is also considered a strategic business as it automatically creates a certain customer base, unlike the large market competitors. The latter does not have a target audience and is generalized in terms of products.
Therefore, the niche market and niche shopping will always be successful if the producers give quality dedication if the preferential needs of the consumers are met with the same single product. To be able to fully come up with a strategic target and business plan, even a small producer can stay afloat in the market for a long time.