To Sell products under $5 is an awful idea since that rate is relatively low…
Welcome to the niche markets topic. Selling goods online could be better explained with the idea of having a physical store. The expression “jack of all trades, master of none,” reflected in a physical store, also applies to e-commerce.
A generalist can try to do everything, taking up everything that comes his way, but he can never be compared to a specialist. A specialist does a particular thing extremely well.
Building your business on niche markets and focusing on such a niche strengthens your reputation and makes you the audience’s go-to brand, giving you an edge over a competing generalist. This results in the audience having faith in your brand due to your unique value proposition in your content marketing.
It makes it easier for the audience and your customers to decide that “this is for me; this is where I can get anything about this item.”
One of the problems business starters and online store owners face is how to get the right product idea – To ease this problem, the best and easiest way to begin is to choose a particular niche.
Countless niches are available; you can narrow it down even after choosing and focusing on a niche.
But, the ultimate goal is to identify a niche market with a viable customer audience that you can master.
In this article, you will understand what a niche market is all about and how to identify a niche market and find products that are in demand; you’ll also get to learn 8 examples of niche markets that can assist you in your online business.
Table of Contents
What is known as the ‘Niche market?’
So, what is a niche market?
A niche market is a small, specific segment of a larger market. The consumers’ unique needs, preferences, or identity within the market defines niche markets. For example, vegan face wash is a niche market within the face wash market.
A niche market could be defined as a portion of a larger market that its unique attributes can determine, the preference attached to it by the audience and the unique attributes that make it stand out from the whole market at large.
For instance, in a large market where men’s shoes are sold, there are different segments of shoes or shoe niches or shoes for plus-sized men, shoes for trans-gendered people, and shoes for vegan men. These segmented parts of the shoe market are all niche markets, submarkets – for men’s shoes.
You should note that nearly all larger markets can be further categorized into sub-niches based on the preferences and the targeted audience’s needs.
Some of the most popular ways by which a niche can be defined are based on the following:
- The demographics – The user’s (age, gender, education level, income, etc.)
- The price (low, high, moderate, discount, promo, luxury, etc.)
- The geographical location (e.g., availability of products for the residents of a particular country, city or county)
- The level of quality of the product (e.g., economical, premium, handmade, etc.)
- Psychographics (e.g., the upheld values, attitudes, or interests)
Although it’s not that easy to choose and decide on a particular product niche, it’s worth the effort, as choosing a particular niche and focusing on the niche is a strategic decision that will create, strengthen, and serve a customer base better than others competitors who aren’t specialist in a specific niche.
Examples of niche markets
Although you might have decided on a specific idea or trending product for your online business, one thing that will increase your chances of success is starting your business with a niche market and then going further to find and capitalize on niche products with a market-fit possibility.
I’ll try as much as possible to explore larger markets to demonstrate how each contains its product opportunities and niche markets.
It would be best if you understood that this list of products and niches is the basis to capitalize and start your search for a niche market, getting a niche market. You are not restricted to this list alone; you can always dwell in different areas of business and niche opportunities to start your road to a successful online niche business.
Those who are termed “Conscious consumers.“
The gospel of creating a sustainable environment has been a global call; this has greatly influenced the world of business, and creating a sustainable environment has been high on consumers’ preferences of late. A survey by Neilson found that about 48% of consumers in the United States say they would “definitely” or “probably alter” their consumption habits to reduce its negative impact on the environment.
An increase in conscious consumers has massively paved the way for Eco-friendly, vegan, and various conventional products with less effect on the environment.
Suppose any product is purchased frequently by the mass market. In that case, there is a high possibility of having more niche products for conscious consumers who prefer Eco-friendly alternatives. Nowadays, many consumers care more about how the products they purchase are sourced and how they are produced.
For example, Bee’s Wrap is gradually replacing plastic wrap among the conscious consumer. They prefer products made from beeswax as a natural alternative because it is Eco-friendly and more cost-effective for the users. After all, it is reusable.
From the above illustration, bee’s wrap is an example of a larger niche market product – A more refined niche product idea of the above example is;
- Re-usable drinking straw
- Menstrual cups
- Vegan-friendly apparel
- Cruelty-free cosmetics, etc.
The lovely Pet owners
According to a survey in the United States, the total expenditure for the pet industry in 2019 is an estimated $75.38 billion. That’s how fast-growing the pet industry is – it shows lots of opportunities to dwell in this market and develop a niche for your business, cutting across various aspects of pets, lifestyle, and lots more.
Take, for instance, Patricia’s Couture, a brand that has carved a niche by selling personalized kaftans, blankets, pajamas, pillows, and other items that can be used to plaster your lovely pet’s pictures. Patricia’s Couture lets you print pictures of your pets on their products.
Most people own pets such as dogs, cats, fish, and unique pets such as horses, turtles, lizards, chickens, etc., that are dearer to them, and they would love to have their pictures printed on their wares. These are potential opportunities leveraged by Patricia’s couture.
The pet market opens an avenue for various pet niche ideas for those who want to exploit them; niche ideas include
- GPS pet trackers,
- pet accessories and pet clothing niches,
- pet feeds (organic pet food and treats),
- pet cameras (for watching and interacting with your pets while you are away from home), or the niche where people can personalize products with their pet’s photos
The LGBTQ+ community
According to research carried out by Nielsen, the LGBTQ+ community goes shopping 10% more than an average American consumer goes shopping, with the will to spend more money, about 7% more.
One of the people who discovered this market niche is TomboyX, an underwear brand doing very well. They are originally a T-shirt brand; co-founder Fran Dunaway also discovered this opportunity to capitalize on a specific group of consumers and sell underwear to them.
Making authentic connections with this market is advisable to be in the best market position to serve this niche. From the large LGBTQ+ niche, more niche product ideas can be explored.
They include taking up a clothing type made for specific body types, exploring the makeup industry specifically designed for certain types of skin, pride-inspired designs, outfits, etc.
The traveler’s niche
Over the last couple of years, there has been a decline in the cost of air travel and a rapid increase in the online sales of the travel industry, which has seen an increase of more than 10% in 2018, totaling about $694.41. Billion. Having a mobile consumer implies that lots of avenues are open for business professionals to tap into.
Consumers are approaching the way traveling is also evolving, a study says – Travelers are becoming more environmentally conscious.
According to Booking.com, this has made more than half of the total number of travelers seek more sustainable options; meanwhile, they find it difficult to locate.
This gap is an added advantage for entrepreneurs to leverage on, and it represents a massive opportunity for brands to step up their game and explore and support Eco-friendly initiatives through sustainable products.
What most travelers are seeking extends beyond going for green options; they seek maximum convenience, authentic local experience, and, sometimes, long-term trips.
In 2017, homeschooled children increased drastically more than in 2014, just 3 years. CNN also reported that by 2020, nearly half of the United States and the United Kingdom workforce would be freelance.
This means that traveling, tourism, and longer and immersive trips will be rampant, especially for workers from remote areas who leverage their flexible careers to travel around the world.
An example of a business targeting a niche market of travelers is Nomatic. Nomatic is a luggage brand geared towards the traveler market, especially digital nomads- which gives much priority to functionality.
Their target audience can be seen across their business model, from the product to the website to their copywriting.
Niche product ideas that can be explored for avid travelers include scratch map niche (meant for people who love gathering information and experiences from travels), traveling accessories niches (smartphones and other accessories for traveling content creators), comfortable and practical athleisure for frequent flyers, etc.
Children, adults, and parents sometimes get engrossed in playing one game or another to spend time or enjoy the moment with loved ones.
A catch-all term suitable for all types of games, including OC games, mobile games, console games, tabletop games, and so on. There are an estimated 2.3 billion active gamers across the world.
What’s more interesting is that nearly half of these people spend money on games, which amount to an estimated gaming industry worth about $137.9 billion in 2018.
Shazim Mohammed launched his online game – Glorious PC Gaming Race, with its products specifically for gamers. This business has become a 7-figure business that runs an auto-pilot selling to a particular niche market of PC gamers.
Gradually, Mobile gaming is taking over the gamer’s world, accounting for about 91% of the market. In addition, more females are getting into the gaming world than before, a positive trend that does not show any sign of slowing down anytime soon.
Tactically, you can choose within this gaming category or niche down the large gaming niche based on factors such as popular genres (e.g., first-person shooters/ war games), or consoles (e.g., Nintendo Switch)
Niche product ideas for gamers that could be explored include Accessories for games, fashion niche (T-shirts, polo, baseball caps referencing various aspects of gamers’ culture, ergonomic products for long gaming sessions (products such as game controllers, gamepads, blue-light blocking glasses, chairs, etc.)
The trend of owning a house is gradually changing from how it used to be; what used to be the norm of owning a home is no longer relevant. Meanwhile, the percentage of homeowners in the United States is decreasing daily. The high cost of living and low income are reasons for this.
As such, it is not only home ownership that is declining; the real definition of home ownership is also changing because homes are increasingly being turned into shared spaces or investment properties, which generate passive income for the owners. This is largely due to the advent of home-sharing and space-sharing via Airbnb and VRBO.
While those two have opened people to the world of possibilities in home investment, August also tapped into the niche idea to launch his keyless entry line and provide home security products specifically meant for an agreed period.
More niche product ideas for entrepreneurs to explore include home solutions for renters (such as the no-drill blinds), furniture and home decor for occupants, and installation of home appliances and accessories (such as security cameras, doorbells, smart home appliances, etc.)
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The increase in self-employed contractors and the increment in implementing the idea of dispersed teams by companies has led to a meteoric rise in remote workers over the years.
Allowing workers to work remotely increases job satisfaction and productivity. Engaging them in working remotely gives them freedom and a better work life.
An example of a company exploring this niche is “Freelancer at Work,” which provides products that can help attract potential clients. They assist freelancers by selling laptop decals that help a freelancer advertise his service wherever he chooses to work.
Niche product ideas for remote workers that entrepreneurs can explore include laptop accessories for people who like coffee shop work sessions, decor for home offices, desk decorations, or toys for home offices.
Let it be known that even the world’s biggest brands adopt approaches to the local market through their target campaigns. They tend to compete with a consumer-driven movement to support their local business, knowing that selling online products can make it difficult to establish a local presence.
Interestingly, there are ways whereby online sellers get into their city or county as a niche market. An example is the Apparel Company Peace Collective – a company founded in Toronto and expanded and looked appealing to Canadians nationwide and even fans of different NBA teams.
Niche product ideas for locals include printing or photoshopping a certain cityscape and its monuments, T-shirts with mottos, or slogans peculiar to a particular culture or city.
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