We hear little sayings like, “the riches are in the niches”.
Why are niches good?
How do you find profitable niches for products?
And perhaps most importantly ...
What the hell is a niche?
When thought leaders say find your niche they usually mean a niche market.
They mean find the place where your product fits.
Niche means products, services, or interests that appeal to a small, specialized section of the population.
Here is a more human approach to understanding the power of niche markets.
In the past, even the recent past, groups of people were lumped geographically and could be sectioned with demographics such as age or gender. Groups of people were more homogeneous. Groups of people were reasonably the same.
People had limited access to outside information and products. A town might have had a couple of stores. People’s interest and desires were very localized. Word of mouth was manual but generally how trends moved. Changes happened but more slowly.
Mass media evolving from print to Radio to TV sped up the spread of information. Companies could push products en masse to the population.
The Internet, especially in its current state, broke everything and gave us massive opportunity.
Mass communication allows culture, interests, and associations to flow across geographic regions. Your musical interests may have more in common with a 15 year old in Ventura California than your neighbor. More importantly, due to the Internet, we now can connect with people of similar interests with ease.
These interests form communities accessible through social media. People are connected in previously impossible ways. People identify themselves through these networks.