What is a niche market? Definition and examples

A niche market is a very focused market with demand for a specialized product or commodity. It is typically a small subset of a larger market.

Businesses that focus on niche markets create custom-made solutions for their niche audience.

For example, within the market for cakes exist different niches. Cakes for weddings would be a niche market, as would cakes made for people on a low-carb diet.

The Cambridge Business English Dictionary defines a niche market as “a small group of people who buy a particular product that most people do not buy, especially a good quality product that makes a lot of profit.”

Niche MarketAs niche markets are highly specialized they represent an opportunity for small businesses to compete against larger companies who may have a strong hold on the mainstream market. However, even large multinational companies have products for different niches. For example, most of the largest automakers now offer energy-efficient hybrid models  for environmentally-conscious and urban consumers. 

Niches can be defined by particular needs of buyers. Ways of defining a niche are based on behavior, benefits, culture, demographics, features, location, language, lifestyle, status, risk tolerance or style.

Companies that focus on a niche market tend to have a strong relationship with customers because of the well-defined focus of the business. This is important in building customer loyalty. 

Some of the benefits of focusing on niche markets include: more effective marketing, higher conversion rate for sales, the ability to charge better prices and more effective sale strategies. 

Examples of niche businesses

  • An organic foods store – some consumers will strictly buy organic foods because it is free of any hormones and pesticides. 
  • Pet grooming – a pet grooming business is focusing on pet lovers who care a lot about the appearance of their pets. 
  • Electric vehicles – an EV business focuses on a subset of the auto market who tend to be more environmentally conscious. 

Compound phrases with ‘Niche’

With the word ‘Niche,’ we can make many compound phrases. Let’s have a look at 14 of them:

  • Niche Audience

A particular group of consumers characterized by their specific interests and needs.

  • Niche Product

A product that is tailored to meet the needs of a specific market subgroup.

  • Niche Branding

The process of creating a brand that appeals to a particular niche market.

  • Niche Strategy

A business strategy focused on targeting a narrow market segment.

  • Niche Content

Content that is created with the intent of reaching a specific subset of the target audience.

  • Niche Blogging

Writing a blog that focuses on a specialized topic for a particular audience.

  • Niche Service

A specialized service offered to cater to a specific customer segment.

  • Niche Retailer

A retailer that specializes in a specific product category or target market.

  • Niche Tourism

A type of tourism focused on providing experiences related to a specific interest or market segment, like eco-tourism or culinary tourism.

  • Niche Advertising

Advertising directed at a specific segment of the population.

  • Niche Expert

A person who is highly skilled or knowledgeable in a particular niche area.

  • Niche Website

A website dedicated to a particular topic, catering to a specific audience or market segment.

  • Niche Appeal

The attractiveness of a product or service to a particular segment of the market.

  • Niche Competition

The competitive landscape within a specific niche market, where businesses compete for a particular subgroup of customers.

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Image created by Market Business News.

Niche in other languages

Here is a translation of the word niche in various languages:

  • Hindi: निचे (Niche)
  • Spanish: Nicho
  • French: Niche
  • Arabic: المكانة (Al-makana)
  • Bengali: নিচে (Niche)
  • Russian: Ниша (Nisha)
  • Portuguese: Nicho
  • Indonesian: Niche
  • Urdu: نشی (Nishe)
  • German: Nische
  • Japanese: ニッチ (Nicchi)
  • Swahili: Niche
  • Marathi: नीच (Nīca)
  • Telugu: కొలి (Koli)
  • Turkish: Niş
  • Korean: 니치 (Nichi)
  • Tamil: சுருக்கம் (Curukkam)
  • Vietnamese: Niche
  • Italian: Nicchia
  • Egyptian Arabic: نيتش (Nitch)
  • Gujarati: નીચે (Nīcē)
  • Farsi: نیچه (Niche)
  • Bhojpuri: निचे (Niche)
  • Hakka: 生意領域 (Sang-yi liang-yuk)
  • Mandarin Chinese: 利基 (lìjī)
  • Cantonese Chinese: 利基 (lei6 gei1)
  • Jin Chinese: 生意领域 (Shēngyì lǐngyù)
  • Southern Min: 生意領域 (Seng-i liâng-ia̍h)
  • Kannada: ಕೊಲೆ (Kole)

Video – What is a Niche Market?

This video, from our sister channel in YouTube – Marketing Business Network, explains what a ‘Niche Market’ is using simple and easy-to-understand language and examples.