Niche Marketing: 8 Examples with Business Potential in 2021
Do you know that you can create a niche within a broad industry of your choice and it can help you drive more sales as you will be providing solutions to a certain factor others are not? Niche Marketing is a marketing strategy in which your specific target audience generates more sales.
Keep on reading to learn more about niche marketing, how to evaluate your plan, and 8 examples in which you can invest today.
Have you ever heard of the term “Jack of all trades, master of none?”.
This term means that a generalist can do everything decently, while a specialist does one think extremely one. The same holds true for the term “Niche Marketing”.
Niche Marketing involves putting marketing efforts in one particular segment of the population. Keep on reading to learn more about it.
Niche marketing is actually channeling all your marketing efforts towards one particular segment of the market.
One important thing to understand is that niche does not exist, rather you have to create a particular niche with the help of smart marketing techniques and identifying what your target audience wants.
Most often, the practice of niche marketing involves identifying the wants of the customers and then trying to deliver a solution to the problem.
Moreover, this solution is not provided by the other companies.
It is important to note that a niche market is not a small market, rather involves a specific target audience with a specialized audience.
By doing so you can become a market leader and it also becomes easy and possible for other companies or brands to enter the particular segment.
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Advantages of Niche Marketing
There are a number of benefits of Niche Marketing. Let’s discuss them as follows:
One of the main benefits of niche marketing is that there is little or no competition.
When you are targeting a specific or target audience, there are significantly fewer competitors providing the same offering.
However, there will be fewer consumers, thus, it becomes imperative that you target the right customers.
Niche marketing helps to build brand loyalty, and this is because you are engaging with a smaller audience.
With this, you can easily focus on customer service and nurture your relationship with them.
Less Spending on Marketing
With the help of niche marketing, you can save on marketing and advertising.
This is because it is highly generalized and is cost-effective.
Niche businesses have high-profit margins as they are meeting the specialized needs of the customers.
Other than this, the target customers are not getting the product or service elsewhere, thus, they often do not mind paying extra for the service.
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Finding and Evaluating your Niche in 2021
There are a number of profitable niches you can pursue, with the opportunity to niche down even further.
However, the key is to identify a niche market you can master and the one that has a viable audience of customers.
Finding your Own Niche Markets in 2021
It is important to note that both established and new entrepreneurs and marketing professionals are looking for untapped niche markets.
However, first, they need to identify a large market and drill down further from there.
Your niche will be a subset of the large market and will also help to define everything from:
- The product features you are aiming
- The pricing strategies for your products
- Product Quality
- Positioning or branding of your product
- digital marketing strategy you are opting for
Thus, choosing your niche gives your online business a competitive edge from the get-go.
If you try to introduce your product in a crowded category or market, then you are going to fave an uphill battle against established competition.
However, focusing on a niche can help you compete not necessarily by selling different products but even doubling down on a specific part of the market.
Though there is no specific and single way you can choose a niche, there are a number of methods you can employ.
Let’s discuss them as follows:
Start with Google Searches
One of the best ways to start with niche ideas is by understanding what other online retailers are selling in a product category or to a certain audience.
Starting with your niche selection with basic Google searches, you can get the lay of the land.
Let’s consider an example where you are searching for “Best Digital Marketing Agency in Dubai.
For here, you can easily find a goldmine of potential angles and what these agencies are providing to their target audience.
With the help of the trial and error method, you can even explore different angles and trends until you find an underserved audience or demand in the market.
However, keep in mind that even if a competitor is already targeting your niche, you can still compete.
You can do this by doubling down on a more specific target audience.
Remember: It is about being a SPECIALIST, rather than a GENERALIST
Build a Mind Map
Building a mind map is a great way to discover niches for your potential business ideas.
Since this map is showing how your brain is thinking, it is an intuitive way to organize your thoughts and expand on ideas.
With this mind map, you can generate product ideas quickly while also encouraging you to explore different niche paths.
You can use an online tool kit like Text2MindMap to create a simple and effective mind map.
Use Google Suggestions
Do you notice that while typing on the Google Search bar you can see suggestions before you even finish typing your query?
They are Google’s most searched-for-related queries that you can use to your advantage.
Moreover, you can use these queries to find out the niche for your product category.
Google will show only a few suggestions, so you might wanna use tools like Keyword Tool or Answer the Public to gather and organize all of Google’s suggested searches.
Consider the above example:
When I search for the keyword “Digital Marketing Agency” and select the region of Dubai, I can see a number of potential niches.
You can do the same by entering your target niche.
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Drill Down the Keyword Research
The next step is to uncover the niche with different keyword research tools.
These are some resources you can use for more customized and advanced researches.
To use these tools, you can either use the trial version of SEMRush or Aherfs or use Google’s keyword planner for free.
For this, you will have to enter your main niche and see your results.
Moreover, you can adjust your location settings to make sure you are targeting areas of your interest.
You can also use filters, remove branded keywords, and see other suggestions for recommended terms.
Searching through these results will give you an idea of potential niches that are related to your original search term and sometimes even the demand for specific popular products.
Evaluating your Niche Marketing Ideas
After figuring out what you are going to sell online, the next step is to identify the audience.
In the beginning, your niche market and product are just ideas.
While targeting a niche as your focus will make it infinitely easier to find potential customers and convince them to buy from you, need to be sure there are enough buyers.
However, if you determine that your niche is too small to generate a reasonable interest and profit, then consider pivoting to a different audience within the niche.
Even if you do achieve success in the initial stages, niches change and it is entirely up to you to evolve with your audience and just your brand positioning.
Ways to Evaluate your Niche
The following are some ways to evaluate a new niche market idea:
Build your Audience first
Before even launching your product it is important that you create buzz and awareness about it.
Test before Investing
Start with a small batch of dropshipping products and run a campaign for your audience.
Feedback from your target audience or sending a few products to influencers can help.
Thus, it is important to get feedback so you can perfect your product before it goes out.
Dig Deeper into your Niche
You already know the keyword research to identify the niche market, however, you can even go deeper.
For this, you can analyze blogs, social media, Amazon reviews, podcasts, influencers, and other key areas to gain insights.
Keeping up with the market trends in your niche is important to expand your brand.
Resources like Facebook IQ, Think with Google, and Nielsen consumer research can help to understand different aspects of your target audience.
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8 Niche Marketing Examples
While you may already have minded the specific trending products, you can, however, increase your odds of success by starting with a niche market and then further narrowing it down to find niche products with a possible market fit. Let’s explore niche markets you can target in 2021.
It is important to keep in mind that this list and product ideas for 2021 are simply a place to start for a potential market niche.
Moreover, you can always go in a completely different direction or find other niche opportunities within each category.
Let’s discuss them as follows:
1# Conscious Consumers
In recent times, sustainability has become the most talked-about topic among consumers.
According to a survey by IBM, almost 6 in 10 consumers are willing to change their shopping habits to reduce environmental impact.
The rise of the conscious consumer market has thus paved a way for vega, eco-friendly, and cruelty-free variation of conventional products.
Moreover, if there is a product that the masses are using a product more frequently, then there is likely a niche of conscious consumers that will embrace alternatives.
Initial practices of many companies were looking to appeal to this niche market by donating a portion of proceeds to a cause.
However, today these consumers are now looking for the source and produce as well.
For instance, if you are looking to replace plastic wrap with other options like beeswax or brown paper, then it is a more eco-friendly and cost-effective way.
More niche product ideas are reusable drinking straws. cruelty gree cosmetics, vegan-friendly apparel, and menstrual cups.
2# Health and Wellness
According to research, the global health and wellness market reached a value of $3.31 trillion in 2020.
Moreover, with the Coronavirus pandemic, the rising concerns about health, individuals are not starting to take well-being into their own hands.
Health and wellness refer to taking care of your mind, body, and spirit.
Some sub-niches in this market are personal care, nutrition, preventive medicine, and alternative medications.
If you are buying gluten-free products from a grocery store, then you are contributing to the health and wellness market.
According to Happiness Abscissa, their niche includes selling scents.
Its products contain specific combinations of scents that help to improve your well-being and happiness.
It is important to note that the product opportunities in this niche are endless, food and beverages, beauty and personal care, skin health, immunity digital products, and recipes.
More niche product ideas could be Melatonin gummies, Mushroom-infused coffee, massagers, kombucha brew kits, oil diffusers, oat milk, etc.
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3# Pet Owners
The total expenditure for the pet business alone in the United States was $99 billion in 2020.
Now imagine the expense all around the world.
Thus, there are a number of opportunities to develop a niche within this market including pets, lifestyle, and more.
For instance, you can have a business for pet owners that includes natural food, flea and tick repellant, outdoor gear, toys, and beds, and more.
Moreover, pet owners can get anything from your website they need for their pets.
While many individuals own a fish, dog, or cat, there are other unique pets like horses, lizards, turtles, and even chickens with their own potential opportunities.
More niche product ideas can be a pet camera to watch and interact with the pets, GPS pet teachers, personalized products with pet images, organic pet food and treats, and accessories.
The way people are approaching traveling is evolving and in fact, travelers are now becoming more environmentally conscious.
According to Bookings.com, more than half of the travels are looking for sustainable options, however, these options are difficult to find.
This gap represents a huge opportunity for you to set up and support eco-friendly initiatives through sustainable products.
Moreover, travelers are looking for more than just green options. They are also looking for local experiences, convenience, and long-term trips.
For instance, Nomatic is a luggage brand that prioritizes functionality for travelers.
You can see them targeting individuals for different product lines.
More niche product ideas are smartphone accessories for traveling content creators, practical and comfortable athleisure, and scratch maps for those who love to collect travel experiences.
This one is a catchall term that contains a number of subsets.
These include mobile games, PC games, console games, tabletop games, etc.
Moreover, it is interesting to note that more than 2.7 billion active gamers across the globe and nearly half of them spend money on this hobby.
Thus, mounting to be worth $200 billion by 2023.
Additionally, mobile gaming is taking over this niche, accounting for 91% of the market.
Also, many women are entering the market than ever before, a trend that does not show any signs of slowing down.
Thus, within this category, you can niche down on popular genres or consoles.
More niche products ideas are Ergonomic products for long gaming sessions that include controllers, chairs, blue-light blocking glasses, etc.
Decals to personalize consoles, controllers, etc, T-shirts, and accessories for mobile gamers.
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Homeownership is changing.
What used to be a traditional concept or norm is no longer in practice and the percent of US consumers are trending away from homeownership.
There are a number of reasons for this trend like the rise in the cost of living and salaries that are unable to keep up with it.
Moreover, not only is this in flux, but the definition of being a homeowner is also changing.
Homes are increasingly turning into investment properties or shared spaces that generate additional passive income.
With this trend, there is a niche of keyless entry and home security products for homeowners.
More niche products ideas can be security cameras, interior design, furniture, or home solutions for renters.
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7# Remote Workers
With factors like self-employed contractors and companies looking for remote teams after the pandemic has given rise to the trend of remote workers.
Moreover, there are a number of reasons for this increasing trend.
One being: following your employees to work remotely increases job satisfaction and productivity.
These workers show more engagement in work and work 2 times more likely than 40 hours a week.
Thus, if you are looking for individuals looking for more freedom and better work-home harmony, this is a great niche for you to work on.
According to a recent survey by Gartner, more than 80% of the company leaders are willing to allow employees to work remotely at least part of the time after the pandemic.
Also, 47% plan to allow their employees to work from home full time.
In a PwC survey of 669 CEOs, about 78% of them agree to remote collaboration and agree that it is going to stay for a long term.
Thus, more niche ideas could be desk toys or decorations, decor for home offices, or laptop accessories.
With the help of targeted campaigns, even the biggest rands are adapting to local marketing approaches.
Moreover, they are also competing with a consumer-driven movement to support local small businesses.
However, if you are selling online, it can be difficult to establish a local presence.
However, there are a few e-commerce sellers to get in on the movement by looking at their city or country as a niche market.
More niche product ideas can be T-shirts with slogans, apparel with local sports teams, prints or photobooks of a specific cityscape, etc.
While understanding the niche you intend to target and conducting the research you need you can hone in your specific audience’s needs and commonalities.
What makes a niche market different from a broader market and how you are going to appeal to the wants, needs, and preferences of your target audience are all important factors you need to consider.
Thus, understand the unique needs and wants of each niche makes it possible to directly engage the consumers with your marketing campaigns, thus, making it a great chance for you to attract potential buyers.