Niche Targeting (Part 1): How to Find a Niche Market

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The modern shopper loves a hybrid of eCommerce and brick-and-mortar stores. Selling in your local community can get competitive with the low cost of starting an online store from a mobile phone coupled with the struggling economy. Differentiating yourself from competitors by using innovative and creative ways such as selling recession-proof items becomes necessary.

That being said, a sustainable long-term differentiation strategy involves targeting a suitable niche market. By winning the hearts of customers in niche markets, they will have an affinity for your brand and turn into long-term supporters. In this guideline, we illustrate what a niche market is, lay out its benefits, and give you tips on spotting niche consumer trends.

The gaming community is a strong and consistent one with cosplayers included

1. What is a niche market

A niche market is a very specific or unique segment of a larger market. It serves customers with specific profiles, preferences, and needs. For example, the electronics market has subsets of office workers, remote workers, gamers, students, and children. If you cater to a niche of gamers: high-performance laptops, ergonomic mouses, fancy keyboards, and gaming chairs that are a cut above the rest will be effective.

Peter Drucker’s saying “know the customer so well that the product fits them and sells itself” is especially true for niche markets. Think about the way you are branding your offerings. Be sure to match product descriptions, advertisement messages, and your brand voice with the values treasured by your target audience.

2. Benefits of selling to a niche market

When your products cater only to a specific type of customers, your brand messaging becomes crystal clear, attractive, and memorable. Here are the some key benefits of selling to a niche market:

  • Create a unique value proposition (UVP)
    By focusing on a specific segment, you can develop a unique value proposition that speaks directly to the needs and desires of your niche audience. While a unique selling proposition (USP) differentiates your brand from competitors, a unique value proposition shifts your branding focus to how target customers can improve their lives by using your products.


  • Reduced price sensitivity
    Customers in a niche market are often less price-sensitive because they prioritize finding solutions that cater specifically to their needs. More often than not, shoppers waste money by trying out products that do not work. Your expertise in an area serves as an assurance of value for money. 
  • Build customer loyalty
    By consistently delivering value to your niche audience, you can cultivate long-term customer loyalty, leading to repeat business and positive word-of-mouth referrals. You can encourage repeat customers to use a mutually beneficial referral program such as LazAffiliates.


  • Become a trustworthy consultant
    By specializing in your niche, you can build a trustworthy brand that people want to approach for advice. For instance, specializing in skincare for sensitive skin or pet dog accessories can present your brand as an expert and reliable authority.

3. The limitless nature of a niche market
If anything, the pandemic taught us three keywords: pivot, flexible, adaptable. Once you are in  a niche market for some time and gain customer trust, innovation by expanding into related niches is fully possible.

Related niche products can be sold successfully when you specialize in a niche market, leveraging your expertise and brand reputation. Gym outfit creator Blogilates for instance has established a strong social media presence. They recently branched into swimwear and it’s a hit!

4. How to spot emerging consumer trends 

Hunting for a profitable niche market is an art of analyzing the desires of particular individuals with specific characteristics. As a start, keep an eye on emerging consumer trends. Stay up to date on trending topics and follow the social media postings of members in your community. 

Take note of the lifestyles that you notice on social media and categorize them. These can be merchandise for artistes’ live tours, baby care, trending self-help books, fitness, technology, teeth whitening, shapewear, sunscreen with no white cast, and so on.

Some trends one can spot among young adults around the age of 30 are: DIY weddings, bridesmaids’ dresses or gifts, metabolism-boosting supplements, camping, tennis, badminton, pilates, skipping, rock climbing, protein powder, baby strollers, pet items, etc.

5. How to identify sub-communities or subcultures

Explore subcultures or communities that have distinct needs or preferences. These can include:

  • Pet lovers and/or plant lovers where endless possibilities of fun yet practical items can be sold to these groups. The willingness to spend is pretty huge here.
  • Sports or dance enthusiasts. Think knee pads for dance classes or skating at the park. Fashion also comes into play with cool outfits that are suitable and specialized footwear.
  • Fitness class enthusiasts. Think grip socks for reformer Pilates classes, yoga accessories, and figure-enhancing sports bras.

In part two, we show you how to identify your very own profitable target niche market, which aligns with your personal values. More examples of niche markets along with the niche products that you can sell within them will be illustrated.

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