by admin
August 27, 2021

Niche market: Definition, examples and effective niche marketing strategies

Although eCommerce businesses have a large potential to develop, you may face a lot of competition. In case you feel that you can’t compete with others in a mass market, it is a good idea to think about a niche market. With niche marketing, you can focus on specific customers. Thus, it is easier for you to create a competitive advantage over competitors and gain profit. Then, this blog will tell you what a niche market is, niche market examples and how to build a niche market for your store.

What is a niche market?

Firstly, you need to understand the niche market definition. A niche market is a segment of a large market that distinguishes it from the rest of the market. Niche marketing means that you focus on serving specific groups of customers instead of everyone in the market. A business using niche marketing will cater for the demand of target groups to gain revenue and build customer loyalty. 

For example, instead of selling foods for everyone, a store decides to serve only vegetarians by offering vegetarian foods. Another business selects a different segment which serves diet foods for people on diet.

Niche market

Secondly, there are many ways to find niche markets by different preferences and demands. You can consider some common factors below to choose your segment.

  • Demographics (age, income, gender, marial status, occupation, …)
  • Price (low, medium, high)
  • Geographics (country, state, region, city, neighborhood, …)
  • Psychographics (interests, preferences, value, lifestyles, …)
  • Behavioral (online/ offline shopping, user rate, loyalty, …)

Niche market examples 

1. Happiness Abscissa is a business example for Niche market in Health and Wellness industry.

In 2020, the worldwide health and wellness market will be worth $3.31 trillion. People are beginning to take their health into their own hands as the coronavirus outbreak raises health worries.

Health and wellness market includes taking care of your mind and body. This sector has some niche markets such as personal care alternative medicines, nutrition, … For example, if you buy a hand sanitiser, you have bought products in health and wellness market.

Happiness Abscissa
Happiness Abscissa

Happiness Abscissa is a business that pursues niche marketing in the health and wellness sector. It sells scents to customers. Its goods have particular smell combinations that boost your happiness and well-being. Each scent is created by a neurologist. Then customers can enjoy each smell in the form of a soap container, candle, or perfume whenever they need a pick-me-up.

Food and beverage, cosmetics and personal care, skin health, immunity, digital items such as ebooks, and recipes are just a few of the product possibilities in this area. Some niche suggestions for this sector are:

  • Gummies containing melatonin
  • Coffee Massagers with Mushrooms
  • Brewing kits for kombucha
  • Diffusers for essential oils
  • Milk made from oats

2. Only Nature Pet is a business example for Niche market in Pet industry

In 2020, the total expenditures for the pet industry in the US were about $99 billion. There are numerous potential to carve out a niche in this market for various sorts of pets, lifestyles, and other factors.

Only Natural Pet is a perfect example of a specialized business in this industry. It sells everything from natural food to flea and tick repellent to outdoor gear, toys and beds, and more. A pet owner can visit the website and find everything they require for their pet.

Niche market
Only Nature Pet

While most people have fish, dogs, or cats, there are also unusual pets such as horses, lizards, turtles, and even chickens, all of which have their own set of advantages. More pet-related niche product ideas are:

  • Pet cameras allow you to monitor and engage with your pets when you are away from home.
  • Pet trackers with GPS
  • Personalized items featuring photographs of pets
  • Pet snacks and meals made from organic ingredients
  • Clothing and accessories for pets

3. Glorious PC Gaming Race is a business example for Niche market in Gamers industry

Gamer is a broad phrase that consists of many subgroups, including mobile gamers, PC gamers, console gamers, tabletop gamers, and so on. There are more than 2.7 billion active gamers worldwide, and over half of them spend money on their hobby, resulting in a $200 billion business by 2023.

Glorious PC Gaming Race started with merchandise tailored to PC gamers. It’s grown into a seven-figure niche business that essentially runs itself.

Niche market in Game industry
A niche market in Game industry

Mobile gaming, in particular, is on the rise, with 91 percent of the market. So you can utilize this opportunity for your business. You may specialize down based on popular genres or systems within this category. More gaming-related niche product ideas are:

  • Long gaming sessions require ergonomic products (controllers, chairs, blue-light blocking glasses).
  • Personalize consoles, controllers, and other devices with decals.
  • T-shirts that make fun of gaming culture.
  • Mobile gaming accessories.

4. August is a business example for Niche market in Household devices

The nature of homeownership is shifting. It witnesses a growing number of Americans who are opting out of homeownership. There are a variety of reasons for this, including rising living costs and stagnant incomes. As a result, not only is homeownership changing, but the concept of homeownership is shifting as well. Because of the house-sharing service like Airbnb and VRBO, homes are increasingly being turned into investment properties or shared spaces that produce additional passive income.

August was able to introduce its own range of keyless entry and home security solutions for homeowners as a result of this. Guest access is one of the key features, which allows hosts to provide renters access for specific time periods.

Niche market in Household devices
Niche market example

Moreover, you can think about other niche products ideas such that:

  • Security cameras for the home (in-home, doorbell, smart home devices, etc.)
  • Small apartment furniture and home decoration
  • Renters’ housing options

5. Bee’s Wrap is an example of niche market

Consumers have recently been interested in sustainability. According to a survey, nearly six out of ten people are willing to change their shopping habits to help the environment. Thus, there is likely to be a segment of environmentally concerned consumers who will love a greener option. In the past, businesses seeking to cater to this niche market would have donated a portion of their profits to a charity. However, today’s consumers are more concerned about how items are obtained and manufactured.

Niche market for eco-friendly business
Niche market for eco-friendly business

Bee’s Wrap, for example, aims to replace plastic wrap with beeswax-based alternatives. Because it is reusable, this natural alternative to food storage is not only ecologically beneficial but also more cost-effective for consumers.

More mindful consumer niche product ideas for you are:

  • Drinking straws that can be reused
  • Cosmetics that aren’t tested on animals
  • Vegan-friendly clothing
  • Cups for menstruation

6. TomboyX is an example of niche market for LGBT customers

The LGBTQ+ population is large, and these customers have a lot of money. According to LGBT Capital, worldwide purchasing power is estimated to be in the range of $3.7 trillion.

Brands that establish genuine connections with this market are best positioned to serve this market. TomboyX is an example. Originally a t-shirt company, it is a brand of underpants now. The co-founder saw an opportunity to market underwear by focusing on a certain consumer group’s demands.

niche market for LGBT customers
Niche market for LGBT customers

For the LGBTQ+ population, there are even more unique product ideas such as:

  • Makeup created exclusively for LGBTQ+ subgroups
  • Designs that are motivated by pride
  • Clothing designed to fit specific body types

7. Nomatic is a business that an example of niche market for travelers

Consumer attitudes toward travel are changing. Also, travellers are becoming more environmentally conscientious. Many people are looking for sustainable solutions but are having trouble finding them. This gives a huge potential for brands to step up and promote environmentally friendly activities through sustainable products. Besides, vacationers are looking for more than simply environmentally-friendly solutions. Authentic local experiences, convenience, and long-term trips are also important to them.

Nomatic is a baggage company aimed at travellers, particularly digital nomads who value practicality above everything else. This audience emphasis can be seen throughout the company, from its product to its copywriting.

niche market example
Niche market example

More specialized product suggestions for frequent travelers are:

  • Smartphone accessories for content creators on the move
  • For frequent fliers, practical and comfy athleisure is essential.
  • Scratch maps for those who enjoy documenting their travels.

8. Freelancer At Work

More self-employed freelancers and organizations sympathetic to the idea of virtual teams after pandemic-related closures are two factors driving the development of remote workers.

This is due to a variety of factors. Allowing employees to work from home, for example, boosts job satisfaction and productivity. These employees are also more engaged and are twice as likely to work over 40 hours per week. Those who choose to work for themselves are usually looking for more flexibility and a better work-life balance.

Freelancer At Work
Freelancer At Work

Freelancer At Work is an example of a business that caters to the needs of freelancers by offering items that can assist them to attract new clients. They sell decals for laptops that advertise what you do wherever you work.

More remote worker-centric product concepts are:

  • Toys and decorations for the desk
  • Interior design for home offices
  • Laptop accessories for those who prefer to work at coffee shops.

9. Peace Collective

Even the world’s most well-known corporations are using tailored campaigns to adapt local marketing strategies. However, establishing a local presence can be tough if you solely sell online. Fortunately, eCommerce businesses may participate in the trend by viewing their city or country as a speciality market.

Peace Collective, for example, is a clothing company that was created in Toronto and is centred on Toronto pride. The brand has grown to appeal to Canadians across the country, as well as NBA fans.

Peace Collective
Peace Collective

For locals, there are more niche product possibilities such as:

  • T-shirts with slogans that are unique to a particular culture or city.
  • Merchandise from local sporting teams
  • A set of prints or photobooks depicting a specific cityscape.

How to find a niche market for your store

1. Define your strength and interests

Firstly, you need to think about what you have to offer and what you are good at. Niche marketing uses your brand’s distinct capabilities and perspectives to attract customers. So let’s find out your company’s strengths first. For example, your strength is fast delivery or excellent customer service.

Besides, consider the types of industry you enjoy doing and customers you aim to approach. Niche marketing allows you to focus on the group of consumers you want to engage with the most. So identify who you want to serve. Here are some common questions that you should answer.

  • What types of issues do you deal with?
  • What challenges do you think you can solve more effectively than your competitors?
  • Which areas do you do best?
  • Who do you like serving the most?

2. Research products

When you have decided on a niche market you want to pursue, be sure it’s a viable option. Thus, you should conduct a competition analysis to determine whether or not there are any competitors in this space. If so, what those brands are currently doing. After that, you should find out if any gaps in your target market have been overlooked. Also, determine if there is demand in the vertical.

Some suggestions for you to research products:

  • Amazon’s categories: You can also look through Amazon’s other product categories. As Amazon is a large online shop, you can gather ideas for products you might not have considered before. Take some time to look around and learn how you might get deeper into popular product categories.
  • Google Search: Starting your niche search with simple Google searches is an easy approach to know what’s out there. For example, start with “eat clean food lists” to gain some ideas.
  • Alexa’s Keyword Difficulty Tool: To determine search interest, you can use Alexa’s Keyword Difficulty Tool. Search for top keywords using Alexa’s Keyword Difficulty Tool to see how popular the phrases are (popularity score) and how competitive the term is (competition score).
  • Use Ubersuggest to see what other people have come up with. Ubersuggest is a keyword recommendation engine that suggests different permutations of a phrase or word that users are looking for. To engage in keyword discovery and gain ideas for how to dig down into a topic, enter a broad term.

In case you still find it difficult to research products, read our blog here to know how to research trending products.

Google Search
Google Search

3. Understand your target customer

Looking at your target audience and determining what they truly want and need is another approach to obtain insight and inspiration for niche marketing. Knowing your ideal consumer will enable you to provide them with a superior product, service, or message.

You can use Alexa’s Audience Overlap Tool to find out who your ideal audience is. Enter your website or a website with a target audience that you want to reach. Then, the tool will assist you in locating similar websites with similar audiences. Also, it allows you to explore them in an interactive representation. You can use this information to check for trends that indicate what else the audience might be interested in. You can figure out how to narrow down on your potential customer’s wants and create strategies to sell what you have to offer.

4. Test your niche marketing strategy and make adjustment

You can’t just set up a specialized marketing strategy and expect it to provide the outcomes you want. So you must put your initial concept to the test, analyze the findings, and make adjustments as needed.

After that, you might discover that your first niche marketing idea didn’t work. However, a small modification can help you attracts audiences and converts them into long-term clients.


To conclude, Arrowtheme hopes that your business can succeed in niche marketing strategies. Besides, if your online store has any technical problems, feel free to contact us.

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