June 9, 2010

Why Serve a Niche Market?

Posted by 2Checkout

Niche Marketing, selling to a specialized market in which a limited and clearly defined range of products is sold to a specific group of customers is increasingly becoming a popular strategy in e-commerce. Looking over our 2Checkout suppliers, it’s clear that many of you are also targeting specific demographics, or shoppers looking for specialized products and services.

Afarin Bellisario in Entrepreneur asks the most important question – Why Serve a Niche Market?

Niche players share a common set of traits. These include a deep understanding of their customers and their customers’ needs and the ability to stay engaged with those customers. Ideal niche market companies should consistently produce quality, innovative products and possess a genuine regard for the well-being of their employees. Serving a niche allows companies to focus on meeting the needs of a smaller group of customers without compromising their chance to increase the appeal to a broader market.

The article continues by listing four reason why serving a niche can be profitable as well as a smart strategy for newer businesses. Along with these reasons, examples are given showing companies who have either made their success by serving a niche, or have expanded beyond their initial market and now serve wider markets.