How to Be Successful in a Niche Market?
To figure out the added-value of blue oceans, disruptive strategies, and innovations.
We all know very well entrepreneurs who have seen their careers taking off because of their judicious positioning on a niche market. These famous blue oceans where there is no competition or barely.
Then, this hyper-specialization becomes famous and so a crowded market because of the diversification of some and the establishment of others.
Yet everyone claims that his/her company is THE “leader of the market”. Mhmmm… What do you mean? Because the requested position of the leader is not only based on a subjective statement #sorrynotsorry. But this is another debate…
Regarding niche markets, it must be said that with a soaring number of successful entrepreneurs with blooming ideas daily, it has become difficult to find a market that is not already covered. Even if the business remains in a very specific market segment.
What propelled these entrepreneurs who have taken over these niche markets to the front line? Did they implement a well thought-out strategy upstream, or did they create it on a day-to-day basis with a test & learn method?
Niche markets: from implementation to innovation.
1) Measuring the blue ocean strategy’s potential.
A niche market means an undeniable competitive advantage. It can start with a monopoly if there is no competition or if it is impossible because of too sharp know-how for example. The Blue Ocean strategy can be managed in several ways.
If we are ambitious, we can start creating a market from scratch. You can also rely on the competitors’ business to disrupt their offer and go where there is no offer at all but a real demand (because creating a product alone will not be useful if there is no one to buy it… I know, harsh reality).
2) Be different with a strong pricing strategy.
The niche market can also exist with a pricing strategy. But hey! I’ve already written about that!
Thus taking a disruptive price’s bais.
You will have understood it;
A market can thus become a niche market if its offer, its price or even its consumers are hijacked.
The tip is to be a little inventive. But not only that. You have to keep in mind that you have to bring a real added-value to your customers.
3) When innovation leads to the niche market.
A niche market does not necessarily mean innovation. But on the other hand, innovation can create a niche market.
We can think in particular of the Air Liquide Group and its innovation regarding its offer of green energy (we won’t go into details, I chose the bachelor’s degree in economics because there was no physical. Let’s stay where I’m skilled, okay?).
Other people have opted for incremental innovation or disruptive innovation. The first one is related to improve or change a feature of the offer and the second one is a more drastic change that transforms the whole industry. And Facebook is concerned about this last one. The company initially wanted to be a very closed social network and concern only Harvard University (niche market, here we go again). Then, the concept has been used by many universities to get on our dear screens nowadays.
These entrepreneurs with mesmerizing storytelling.
1) The audacity of the french brand Le Slip Français.
How can we talk about a niche market without talking about the brand Le Slip Français! The main idea was to change the world by changing briefs (if life was that simple).
The market was therefore very narrow with a product that was concerning only one type of men’s underwear: briefs.
But this is precisely what made the strength of the brand’s storytelling and its daring creator, Guillaume Gibault. Thanks to its undeniable success, the brand then diversified into men’s and women’s ready-to-wear.
Personally, I am a great huge fan of the marketing strategy of this brand. I even took it as an example in my thesis regarding marketing in fashion eco-friendly.
2) The delicacy of La Bouche Rouge brand.
Another brand that is positioned in a niche market and that has also hit minds; La Bouche Rouge. It is a lipstick brand that advocates a world without plastic (yes, I love fashion and beauty world… You can feel it? I will make an effort to diversify my sources though).
Nicolas Gerlier, the founder wanted to launch a mono-product that eliminates the plastic both in its container by proposing a leather case and in its contents (the microplastic contained in the grape of the lipstick).
You are going to tell me that the beauty market, and especially the make-up market, is very crowded.
It’s quite true what you’re telling me here.
But the innovation here lies in a detour of the product that did not really exist before. That is to say, a part of its contents and the totality of its container. The brand’s very accurate and strong storytelling supports this bias.
3) The range of mono-product brands.
In fact, many emerging mono-products are moving in an ecological direction. And that’s good!
I’m thinking of the french brand Respire with its eco-friendly deodorants who also take care of the skin, the Réuni brand that talks about an eco-friendly sweater with a dropshipping strategy (we’re talking about a dropshipping niche in our case), or brands positioning themselves on reusable straws like Bamboo Straws. All of these brands have also diversified their offer because of growing demand (and their fame).
The steps to conquer a niche market.
1) The importance of market studies.
You can go with your head down and rely on your intuition and good conscience, but it is still better to be strategic and conduct research beforehand.
Let’s talk about market studies, and in particular that relating to the famous Blue Oceans, a strategy that we have already discussed above.
The interest of this global study is to identify strategic market sectors, i.e. those that have a real potential for your future business or your future diversification (it all depends on where you are… No judgment).
They can oppose them to the red oceans, which are hyper-competitive and crowded markets.
From this study, we, therefore, have a global overview of the promising markets, and in particular, those that are relative to very specific market segments (because our subject remains the niche markets for recall. But this study can be extended to any type of market, it goes without saying).
2) Understand current market trends where there is demand.
The best way to get an idea of trendy products/offers/demand is to have a look at Google trend, Pinterest, Instagram, especially on the social selling side. But also towards the best sales of the brands’ website that sell anything everywhere. Like Amazon for example #GAFAM.
Here are a few niche market ideas to fully get the concept…
3) Implement your product strategy…
Once the market has been targeted, we must take action by modeling our offer that is going to be sold (because we don’t work (only) for fame).
This is where the product strategy comes in #todoum.
We can play the “test & learn” mindset and launch a product as a prototype on the market. But after that, be constantly led by feedback from prospects, prescribers, and consumers to modify and improve the product or the service.
A lot of surveys have to be run to release a product that completely “fit” with real demand. More advice regarding having an offer in line with its target, this way :
4) …By having a consumer-focus mindset.
Nowadays, it is important to know that the product strategy is no longer just product-oriented; it is customer-oriented and even customer experience-oriented. To show off with trendy words, we talk about CX (Customer eXperience).
The product focus must be, first and foremost, a consumer focus.
It would be pitiful to forget who we sell to, don’t you think? (don’t lose the meaning… never ever).
5) The undeniable added value of storytelling.
And for this customer experience to be fully enjoyable and memorable, a story must be told and values conveyed (but we have to respect those values after that! Not only showing off).
This is where storytelling comes in. Get your pens, paperboard, and post-its; this time is dedicated to brainstorming.
The story must reflect a true distinctive brand identity, even disruptive if you have a little boldness and creativity.
We are not on a blue ocean for nothing, we must exploit it now.
Storytelling has already proven its success. We have seen that it is this mix of “niche product-mono-product/storytelling” has made some brands soar. Then, afterward, they were able to offer a similar or, on the contrary, a complementary range of products to complete this hyper-specialized offer.
6) Building strong customer loyalty.
Since this market segment concerns only a small portion of the population, it is essential to implement a loyalty strategy with specific tools.
But the observation also works the other way around; because the offer is very limited, clients will naturally become loyal to the brand thanks to its distinctive and disruptive offer (until the competition makes its noisy entrance and disrupts this peaceful atmosphere).
