It is important to understand what is “Niche Business” even before you consider of starting one. A niche business is a business that is targeting one very specific group of people with a very specific common shared interest or passion or desire. Accordingly we are going to look at what exactly niche business is and why it’s really the best way to get started building your business if you don’t have a big budget and are trying to create the brand awareness around the world. Niche business or Niche marketing is the polar opposite of mass marketing.
You can understand the exact definition of Niche Business by the following examples:-
The fishing store that is a niche business. Because of fishing store is only selling fishing equipment. They’re not selling dog food, they’re not selling cat litter, and they’re not selling birdcages. They are selling hooks and fishing lines and nets and other stuff that people like fishing want to buy. The opposite of a niche business is a shopping mall. In a shopping mall you can kind of find everything. You can find for what’s you can find bread and fine foods and drinks and cigarettes and mini course and clothes and books and CDs and more. These are all-in-one stores.
Same example we can see in our software market, SAP is a kind of software on which we can be provided with all the things or applications or modules to work on (same as shopping mall example given above serves) whereas another software called Jd Edwards is like fishing niche market that is Small and rare.
1. It aids you in survival, even when market is doing down to dearth.
2. Your advertising effectiveness increases allowing you to make sure that you get maximum benefit.
3. Competition would be always less! There would be few players and you can be easily established as market leaders.
4. Your business will be more profitable because you
will have better control of your pricing and your promotional expenditures.
5. The hour-to-hour changes blowing through your
marketplace will affect you less because you can spot the change and act upon it immediately.
6. You will be able to build your business faster by making fewer mistakes as regards who you are, who your customers are and how you can cost effectively reach them.