Three reasons why going niche can make you more competitive
Regardless of what products or services your business sells, it’s more than likely that you are operating in a saturated marketplace with many competitors fighting for your customers.
It can be difficult to find the right balance with your services and marketing, but there are nonetheless certain tools and techniques that you can employ to maximise your competitiveness.
For example, cutting prices or investing in aggressive marketing campaigns can be a sensible solution, but sometimes the best way to make an impact is by truly differentiating yourself from your competitors - in other words, 'going niche'.
You will face less competition
If your company is unfocused and broad, you are more likely to have a string of competitors. By offering niche products or services, however, you can ensure a significant decrease in the level of competition that your company faces, allowing your firm to gain a larger share of its market.
Niche companies usually work in cooperation rather than competition, so previous competitors may even become allies, allowing you to work together to get the most out of each other’s skills.
You will make your customers happy
Of course, delivering a great product and customer service is the most sensible way to make your customers happy, but in competitive markets with ever-demanding customers, sometimes you have to go above and beyond the traditional norms.
By offering a niche product or service, you will be able to word and market your products towards a more specific audience, so they’ll feel like they’re buying a product that was made for them.
Taking the niche approach usually means things are done better – you’ll be able to specialise in a particular field and boast about how well you do it – so your customers will see you as ‘experts’ who offer quality.
You will experience growth
Niche businesses can experience significant growth peaks based on the needs of their customers, and thanks to a better-defined customer base, you will be able to react to those needs more promptly. As markets continue to grow and develop, they fragment, which means you can exploit them to your advantage and increase your growth over time.
While drastically changing a product offering or differentiating isn’t the right formula for every business, the risk of going niche with your business can pay off in the right circumstances.
Reducing competition gives you the opportunity to make more money and a bigger impact on the marketplace, and by analysing your current sales patterns and competitor movements, you can quickly build up a picture of whether going niche is right for your company.