A niche is a specific group of consumers who have distinct preferences and needs. These groups are often smaller than the overall market, and can represent an opportunity for smaller companies to target and serve a specific customer base. Niches can be found in a variety of industries, and can be defined by a range of factors such as age, demographics, interests, and lifestyles. In some cases, large companies may choose to enter a variety of niches in order to counter growing competition from smaller firms and protect their market share. By targeting and serving specific niches, companies can often differentiate themselves from their competitors and build a loyal customer base. The following are examples of a niche.
Behavior
A mobile device plan for a customer who uses a great deal of bandwidth.
Benefits
A credit card for customers who want a large number of benefits such as various types of insurance.
Culture
An airline that provides authentic Japanese food on its route to Tokyo.
Demographic
Shoes designed to appeal to urban professional women between 21 and 31 years of age.
Enthusiasts
Light and durable bicycles designed for cycling enthusiasts.
Feature Reduction
Removing common features in a product or service that some customers find cumbersome, invasive or annoying. For example, a television remote without cloud based voice search.
Features
Features that most people don’t use but that are important to a small group of customers. For example, a web browser that allows you to configure hotkeys.
Geographic
A restaurant that offers local specialties.
Language
A Korean language television channel offered in the United States.
Lifestyle
Organic food with healthy ingredients.
Occasions
A cake shop that specializes in events such as weddings.
Opinions
A newspaper that targets readers with a particular set of opinions.
Price Sensitivity
A luxury fashion brand that targets customers who aren’t particularly price sensitive.
Risk Tolerance
An unusually safe model of car designed for customers who prioritize safety.
Status
A fashion brand with aspirational products designed to represent social status.
Style
A snowboard brand that targets a particular sense of style in its designs.
