Niche Market: There’s Someone for Everyone Part 2

In my last post I said that you don’t have to be a particular type to find happiness.

Having a particular hair colour/height measurement is no guarantee for happily ever after, and there’s someone for everyone.

In economics, a small pocket of a rather specific demand is called a niche market. The idea is that a company doesn’t necessarily have to make a product that appeals to the masses. To be profitable, it doesn’t even have to be the biggest player in town. Rather, it could make a specialized product that appeals to a small market that’s willing to pay good money for it.

We see such businesses in our daily lives all the time. For example:

-Armani (instead of Wal-Mart)

-The Art Shoppe (instead of IKEA)

-The Ritz-Carlton (instead of Super 8)

-Milestones (instead of MacDonald’s)

-Organic Meat (instead of hot dog “mystery meats”)

As you can see, each of the two different types of business has its own following. Some people like low prices, while others like high quality. The businesses are targeting totally different crowds: the customers who go for Armani aren’t there for cheap bargains, and they’re willing to pay a huge mark up for the trendy design.

The golden rule: The niche market, though boutique-sized, can be very lucrative.

(Stay tuned for my next post about where I talk about applying the concept of niche market to dating.)