How To Find Your Niche Market + 5 Examples to Inspire You

Summary

In this video, host Michelle Bali explores the concept of niche markets, emphasizing their importance for establishing business credibility and attracting a focused customer base. She illustrates how narrowing down to a specific segment, like vegan shoes or shoes for nurses, can dominate a market corner. Bali provides strategies to identify a niche, including analyzing consumer needs, preferences, and online communities. She also discusses validating niche ideas through audience building and market research, suggesting tools like Google alerts and social media to stay updated with trends.

Takeaways

• 📍 Positioning your brand for a niche audience helps establish credibility and makes it easier for the right customers to find you.
• 🛒 A niche market is a segment of a larger market with unique needs, preferences, or identity that differentiates it from the broader market.
• 👠 Examples of niche markets include vegan shoes for men, plus-sized women's shoes, or shoes for transgender individuals.
• 🏪 Having a broad product range can dilute your message, whereas focusing on a niche can make you the go-to spot for that market segment.
• 👩‍⚕️ Niching down can lead to establishing a strong presence in a specific market, like being the top choice for shoes for nurses.
• 💰 Niches can be defined by price (luxury, moderate, discount), quality, geographic location, demographics, or psychographics.
• 🌍 Geographic niches can target local markets such as a city or neighborhood, making it easier to establish a local presence.
• 🐾 Niche examples include conscious consumers seeking sustainable products, pet owners looking for pet-related goods, and gamers interested in gaming accessories.
• 🏡 Homeowners are a niche market with specific needs, such as home security and convenience products for shared living spaces.
• 🌐 Locals can be a niche market, with even global brands adopting local marketing strategies to appeal to consumers who support local businesses.
• 🔍 To find your niche, use methods like Google searches, observing your surroundings, utilizing Google suggestions, and engaging with passionate online communities.

Q & A

What are the benefits of positioning yourself as a go-to brand for a niche audience?

Positioning yourself as a go-to brand for a niche audience establishes credibility, results in a more focused business, and makes it easier for the right customers interested in your product to find you.

Why is choosing a niche a good starting point for a new business?

Choosing a niche is a good starting point because it allows you to focus on a specific segment of the market with unique needs, making it easier to cater to those needs and stand out from the competition.

What is a niche market and how does it differ from a larger market?

A niche market is a segment of a larger market that can be defined by its own unique needs, preferences, or identity. It is a specialized segment where a business can focus and dominate, unlike the larger market which is more general and competitive.

Can you give an example of how a business might narrow down its market to become more niche?

Instead of selling a broad range of shoes, a business might decide to sell vegan shoes for men, shoes for plus-sized women, or shoes for transgender people, thus focusing on specific needs within the larger shoe market.

What happens when a business tries to cater to too many types of products?

When a business tries to cater to too many types of products, its message gets diluted, making it less likely to be the first choice for customers looking for specific items like durable work boots or performance-enhancing running shoes.

How can a business establish credibility by niching down?

A business can establish credibility by focusing on a specific niche, such as selling non-slip shoes for nurses, and marketing directly to that niche. This makes the business the go-to spot for that specific customer group.

What are some common ways to define a niche based on consumer characteristics?

Common ways to define a niche include price (luxury, moderate, discount), quality (handmade, premium), geographics (local city, neighborhood), demographics (age, gender, income level), and psychographics (attitudes, beliefs, values).

How can a business refine its niche using the characteristics mentioned in the script?

A business can refine its niche by specifying the price (e.g., discount), quality (e.g., vegan), product type (e.g., shoes), geographics (e.g., Canadian), demographics (e.g., female nurses), and psychographics (e.g., values comfort and fashionable accessories).

What are some examples of niche markets mentioned in the script?

Examples include conscious consumers looking for sustainable products, pet owners, gamers, homeowners, and locals supporting local businesses.

How can a business avoid greenwashing when targeting conscious consumers?

A business can avoid greenwashing by ensuring that its environmental claims are supported by actual practices and not just marketing. It's important to be transparent and honest about the sustainability efforts of the company.

What is the significance of understanding niche markets when starting an e-commerce business?

Understanding niche markets is significant because it helps businesses identify specific customer segments with unique needs, allowing them to tailor their products and marketing strategies effectively, increasing the chances of success in a competitive online environment.

How can a business find its own niche market according to the script?

A business can find its own niche market by starting with Google searches, paying attention to surroundings for common pain points, using Google suggestions, looking for passionate communities online, and considering various methods until one feels intuitive.

What are some methods to validate a niche market idea before fully committing to it?

Methods to validate a niche market idea include building an audience first, testing with a small batch of products, digging deeper into the niche through research, and staying updated with consumer trends and social media conversations.

Outlines

00:00

📈 Establishing Your Niche Market

In this section, Michelle Bali explains the importance of positioning your business in a niche market to build credibility and attract the right customers. She defines a niche as a specialized segment of a larger market that caters to unique needs and preferences. Michelle emphasizes that by narrowing down your product offerings, such as selling specific shoes for nurses, you can dominate a particular market segment and become the go-to brand for that audience. She highlights that while expanding product lines may dilute your brand, focusing on a niche builds credibility and helps attract a more loyal customer base.

05:02

🌱 Common Niches and Their Potential

Here, Michelle dives into different examples of profitable niches, such as conscious consumers, pet owners, gamers, homeowners, and locals. Each market presents a specific opportunity to offer products tailored to their needs. For example, conscious consumers look for sustainable, cruelty-free products, while pet owners are interested in items like GPS trackers and personalized accessories. Michelle advises avoiding greenwashing when marketing to environmentally conscious consumers. She also notes the rise of the gaming market, with opportunities in products like ergonomic gaming equipment. Lastly, she touches on the importance of local marketing, even for e-commerce brands.

10:04

💡 How to Identify Your Niche and Validate Ideas

In this section, Michelle offers practical advice on how to find your niche. She encourages conducting research through Google searches, paying attention to daily pain points, and exploring online communities like Reddit and Instagram. Michelle also discusses the importance of validating your niche market ideas before diving in. She suggests starting with small product batches, getting feedback from your audience, and using platforms like Kickstarter to gauge interest before fully committing. Finally, Michelle stresses the need to stay informed about consumer trends and adapt your niche as markets evolve.

Keywords

💡Niche Market

A niche market is a segment of a larger market that has specific needs, preferences, or identity that differentiates it from the broader market. In the video, the host Michelle Bali emphasizes the importance of identifying a niche market for business credibility and focused business strategies. The video uses examples such as vegan shoes, shoes for plus-sized women, and shoes for transgender people to illustrate how niching down can help a business establish a strong presence in a specialized segment.

💡Credibility

Credibility refers to the trustworthiness and reliability that a business gains by specializing in a particular market segment. The video suggests that by positioning oneself as the go-to brand for a niche audience, a business can establish credibility, making it easier for interested customers to find and trust the brand. An example given is a shoe store specializing in vegan shoes, which could establish credibility among vegan consumers.

💡Focused Business

A focused business is one that concentrates its efforts on a specific market segment rather than trying to appeal to everyone. The video argues that a focused business is easier to manage and can more effectively meet the needs of its target audience. It contrasts a general shoe store with one that specializes in shoes for nurses, showing how the latter is a more focused business.

💡Product Idea

A product idea in the context of the video refers to the concept or inspiration for a product that a business might offer to a niche market. The video encourages viewers to think of their first product idea as they consider entering a niche market, suggesting that choosing a niche is a perfect starting point for product ideation.

💡Consumer Needs and Preferences

Consumer needs and preferences are the specific requirements and tastes of a consumer group that can be used to define a niche. The video discusses how every market can be further refined by understanding the unique needs and preferences of consumers, which is crucial for businesses to target their offerings effectively.

💡Demographics

Demographic factors include age, gender, income level, and education level, which are used to describe and segment a population. In the video, demographics are used to define a niche market, such as 'Canadian female nurses' in the example of selling vegan shoes. Understanding demographic characteristics helps businesses tailor their products and marketing strategies to their target audience.

💡Psychographics

Psychographics refers to the study of personality, attitudes, beliefs, and values of a specific population. The video uses psychographics to further refine a niche, such as identifying that a target audience may value 'comfort and fashionable accessories.' This understanding helps businesses connect with consumers on a deeper level.

💡Greenwashing

Greenwashing is the practice of making an unsubstantiated or misleading claim about the environmental benefits of a product, service, or company. The video warns against greenwashing in the context of selling sustainable products, emphasizing that environmental claims should be genuine and supported to avoid backlash.

💡E-commerce

E-commerce refers to the buying and selling of goods or services using the internet, and the systems and processes involved. The video discusses the process of setting up an e-commerce store using platforms like Shopify, which allows businesses to sell products online efficiently and effectively.

💡Market Validation

Market validation is the process of confirming that a market exists for a product or service and that customers are willing to buy it. The video suggests various methods for validating a niche market idea, such as building an audience first, testing products with a small batch, and researching consumer trends, to ensure that a business's offerings will resonate with its target market.

💡Influencer Marketing

Influencer marketing involves partnering with influential people in a niche to promote products or services. The video mentions using Instagram ads and influencer posts as part of a marketing strategy to appeal directly to a niche audience, such as nurses, which can help establish a brand's credibility and reach within that niche.

Highlights

Positioning yourself as a niche brand establishes credibility and helps attract the right customers.

Choosing a niche can help you start your business with a focused approach and avoid diluting your message.

A niche market is a specialized segment of a larger market, defined by unique needs, preferences, or identity.

By narrowing your focus, such as selling shoes for nurses, you become the go-to brand in that niche.

Common ways to define a niche include price, quality, geography, demographics, and psychographics.

Examples of niche markets include conscious consumers, pet owners, gamers, homeowners, and locals.

Conscious consumers seek greener alternatives, such as cruelty-free cosmetics and vegan clothing.

The pet industry is booming, with product examples like GPS pet trackers and organic pet food.

Gaming is a massive market, and niche product ideas include ergonomic gaming accessories.

Homeowners now view homes as investment properties, leading to niche products like keyless entry systems and no-drill blinds.

Local marketing is on the rise, with brands appealing to local pride and culture, like Peace Collective's 'Toronto versus everybody.'

Use methods like Google searches and suggestions to brainstorm niche ideas and find underserved problems.

Look for passionate online communities, such as subreddits and Instagram hashtags, to discover niche opportunities.

Validate your niche market idea by building an audience first and testing before investing in large-scale production.

Keep up with consumer trends and regularly analyze your niche market to adapt and grow over time.

Transcripts

Positioning yourself as the go-to brand for a niche audience establishes

credibility, it results in a more focused business, and it makes it easier for

the right customers that are interested in buying your product to find you.

So if you're scouring the internet, trying to think of your first

product idea, choosing a niche is the perfect place to start.

In today's video, we're going to discuss what a niche market is and I'll

give you examples to get ideas going.

So make sure that you're sticking around until the end of this video, where I'll

teach you how to find your own niche.

Welcome back and if you're new, welcome to the community.

I'm Michelle Bali, your host.

Here on Learn With Shopify we create a new video every week to help you

start and grow your online business.

So make sure to hit that subscribe button so that you don't miss

out on any future videos.

Alright, so what exactly is a niche market?

You might've already heard of the term before, but a niche is a segment of a

larger market that can be defined by its own unique needs, preferences, or identity

that makes it different from the market.

At large, this specialized segment of the market is where

you want your business to occupy.

Selling shoes is a large market.

So instead, perhaps you decide to sell vegan shoes for men or shoes

for plus sized women, or how about shoes for transgender people?

So you see how the market is now quite focused.

To make it as a business, you'll need to carve out a niche.

So imagine that you had a shoe store, you add as many types of

shoes as possible to that store.

Then you add t-shirts hats, jackets, bags, and then you throw in some

sunglasses for good measure.

If a customer is looking for durable work boots, are they going to come to you?

If they're looking for performance enhancing running shoes, are you

going to be their first choice?

Probably not because your message gets diluted.

This is a common pitfall of new business owners.

Now let's reverse the scenario.

Say you still have that lovely shoe store, but instead of expanding your

product offering, you actually narrow in.

You decide that you're going to sell shoes for nurses.

You sell non-slip shoes that provide all day support and you spend your marketing

budget on Instagram ads and influencer posts that appeal directly to nurses.

The result of niching in is that you are now the go-to spot for nurses.

You've established credibility and you've dominated that corner of the market.

So hopefully now you can see why it's important to find your niche.

Every market can be further refined by consumers needs and preferences.

Some of the most common ways to define a niche are based on price.

So you can sell luxury, moderate, or discount goods.

Level of quality, so you can sell handmade or premium goods.

Geographics, so you can sell to people that are within your city

or just within your neighborhood.

Demographics, including age, gender, income level, education level, as

well as a psychographics, which includes attitudes, beliefs, and

values of a specific population.

So to distill all of that down, you can break it down into one sentence.

So here I'm going to write, I want to sell and I'm going to put in my price.

So here I'll put in discount.

Then the quality.

So I'm going to write vegan shoes where the product is.

They appeal to, now I'm going to put the geographic.

So Canadian

female nurses.

And that's the demographics.

And then I'll put in the psychographics.

So these people might value, comfort

and fashionable

accessories.

So super easy.

Right away, we can see that we've distilled all those characteristics,

including the price, quality, type of product we're going to sell,

the geographics, demographics and the psychographics.

And now I have a clearer idea of who it is I'm selling to, who my audience is,

and the type of product that I'm selling.

So let's take a look at five examples to start giving you some ideas.

Conscious consumers.

Sustainability has become an important topic and for good reason, so think of

any mass produced product, and there will be a niche of conscious consumers

looking to embrace a greener alternative.

In the past, companies might have donated proceeds to a cause, but now consumers

care about how products are made as well.

This means that within the culture of green living, there's

a subculture of people who care about ethical supply chains.

So keep that in mind, if you're playing within this niche, some product examples

are BS, rap that replaced saran wrap.

You can also do cruelty free cosmetics or vegan clothing, or even try

menstrual cups, but avoid greenwashing.

Make sure that your environmental claims are supported rather than just marketing.

It's of course impossible to be perfect in this category.

That's not how business works.

That's not how commerce works.

But do keep in mind that greenwashing will always backfire in the end.

Pet owners.

Pet business in the US estimated $75 billion in sales in 2019,

so there's lots of opportunity here.

So for example, Pup Socks sell personalized socks that you can

plaster your beloved pet picture on.

And they have hundreds of thousands of website visitors monthly.

Some product examples can be GPS pet trackers or organic pet food.

Gamers.

There are more than 2.3 billion active gamers across the

globe, including mobile gamers,

PC gamers, tabletop gamers, and the list just goes on.

But nearly half of these people spend money on their hobby,

so there's definitely space for your emerging business.

Take Shazim Muhammad for example.

He launched his online store called Glorious PC Gaming Race and it's now

become a seven figure business that basically just runs on autopilot.

A few little tips here.

Mobile gaming in particular is taking over, which makes up 91% of the market.

Plus more females are entering the market than ever before.

More niche, product ideas for gamers include ergonomic products for long

gaming sessions, like controllers, chairs, and blue light blocking glasses.

Homeowners.

The definition of being a homeowner is changing.

We're now seeing homes as investment properties or shared spaces.

This paved the way for products like August to launch it's keyless entry

tools and home security products.

Here are some more niche product ideas for homeowners.

So you're going to want to check out accessories for Airbnb guests

like couch covers and renter solutions like no drill blinds.

Locals.

Even the world's biggest brands are adopting local marketing approaches

through targeted campaigns.

This is because they're competing with the consumer driven movement

to support local businesses.

But if you're only selling online, it can be difficult

to establish a local presence.

Luckily, there are ways for e-commerce sellers to appeal to locals.

Peace Collective for example, was founded around Toronto pride with

the slogan Toronto versus everybody.

Now, if you want to sell locally, you could do t-shirts with subculture slogans

like this, and you can also do subway station swag like this Etsy artist here.

So if you get to the end of this video and you're still not sure what to sell

and you need help finding a product, make sure that you're checking out our free

40 minute webinar that will teach you how to find winning product ideas, how

to validate them and how to get started.

Just click the link in the description box below to get

started with this free training.

Now, how to find your own niche market.

So there's no single way to choose a niche.

There are actually many methods you can use so find one

that feels intuitive to you.

You can start with Google searches.

The best place to start brainstorming is to understand what other

online retailers are doing.

Let's take vegan shoes as a starting point.

So I like to scroll to the bottom of the search results page to

see the related search results.

From there, we're able to find a gold mine of potential angles like vegan

crocodile heals, and faux fur slippers.

Keep digging until you find an underserved problem that you feel

you can provide a solution to.

But keep in mind that even if you have competition, you can

still compete by getting even more specific with your audience.

Another tip is to pay attention to your surroundings.

Start looking outward to catch any common pain points.

Your own experiences, as well as the experiences of

others, can spark some ideas.

If you're selling shoes, for example, you might notice both youth and elderly

people have trouble tying laces.

Maybe you yourself are after a certain style of shoe but

no one ships to your country.

So take note of any problems like these and be that business to serve a niche

population with your unique solution.

Use Google suggestions.

Ever noticed how, when you start typing something into a Google search, it

shows you suggestions before you finish.

These are Google's most searched for related queries.

Use it to your advantage to find a niche for your product category.

I plugged in 'best shoes for' which gave me some ideas.

Look for passionate communities online.

The internet is pretty good at organizing itself into communities based on shared

interests, passions, and hobbies.

In other words, into niches.

So dig through the most active subreddits and listen in on their conversations.

Subscribe to hashtags on Instagram and Twitter, like #sneakerhead and you'll

find opportunities to niche down.

Instagram is a really great tool to get people talking about your

brand but if you have a product or a service to sell, you'll need a

platform where customers can actually go ahead and make those purchases.

Shopify is a really great place to start.

Selling online with your own e-commerce website has never been

easier, faster or more scalable.

Setting up your store can actually be done in a matter of days and

you can do it all by yourself.

You don't need a fancy coder.

You can get started with a free 14 day trial.

There is no commitment at all.

You don't even need to give your credit card information and you actually have

two full weeks to build a fully beautiful, branded, personalized, e-commerce store.

So I'm going to leave a link in the description box for you guys

to check that out so you can take advantage of your free 14 day trial.

How to validate your niche market ideas.

So now that you know what to sell online, you need to make sure that

there's an audience for it at the start.

Your niche market and products are just ideas or a hypothesis of what you think

will resonate with your target audience.

Having a niche makes it easier to find potential customers and

convince them to buy from you.

But you need to be sure that there are enough buyers in

that niche to make it viable.

So let's say you're targeting dog-loving nurses in Toronto, and you

determined that your niche is too small.

Consider pivoting.

You could expand to dog-loving professionals in North America.

But you won't really know what will resonate until you try.

Here are some ways to evaluate your niche market idea.

Build your audience first.

Kickstarter campaigns generate awareness about products

before they're even developed.

You can introduce your idea and gain followers before the

idea has even come to fruition.

This way, you'll have an engaged group of potential customers ready

and waiting for when you launch.

Test before you invest.

This applies to both time and money.

Start with a small batch of products and run a campaign to your

target audience and influencers.

Ask them for feedback.

It's important to get feedback early on, especially if you're developing

a new product, so you can perfect it before it goes out into the real world.

Dig deeper into your niche.

As you're doing your online research, analyze blogs, ads,

product reviews, and other key areas in your niche to gain insights.

Can you solve a problem that is repeatedly coming up?

Research consumer trends in your market.

It's important to be up to date with what's happening in your chosen niche.

Resources like Facebook IQ, Think with Google and Nielsen Consumer Research

will help you understand consumer pain points, desires, and breakout trends.

Set up Google alerts for related keywords and regularly monitor

social media conversations to stay on top of what's trending.

Even if you do achieve success early on, niches change, so expect to

evolve with your audience over time.

You might even introduce new products to your line as new

opportunities present themselves.

Understanding the unique needs of each niche makes it possible to speak

directly to them in your marketing.

You'll have a greater chance of attracting a buyer's attention and winning their

business by making it clear that your product is specifically for them.

Don't forget to sign up for this webinar to learn even

more in less than 40 minutes.

Let us walk you through how to find product ideas, how to validate

them and how to sell the product

once you have an idea that you want to pursue.

So now that you know how to choose a niche market and generate product

ideas your target audience will buy, it's time to turn it into a reality.

The next video that you're going to want to watch is how

to start an e-commerce business.

I'll link that right up here.

But if you found this video helpful, make sure that you're giving it a

thumbs up because that helps our community and our channel grow.

And make sure you're subscribed so you always have the scoop on how

to grow your e-commerce business.

If this video sparked any ideas, be sure to drop your new niche

idea in the comment section.

I want to see who's managed to pick out a deep subculture with potential.

Thank you guys so much for watching.

I'm your host Michelle Bali and I will see you in the next one.