Once you conducted a market research and find the issue which your target customer faces, the solution is your products! To make your online store stand out, the best way to position at the beginning phase of your online business is “to be the big fish in a small pond.”
How to find a niche market?
Obtaining the No.1 share in a niche market is the most effective way for a business beginner who has slim budget to start and need to be quick to gain a profit. If you have read the previous chapter on “market research” and conducted a market research, you would already understand where is your target audience and you are now ready to find a niche market. Let’s see the case-studies shown below and bring the same process to your own.
The market forecast says there are above 40% of 20-30 age women’s population in your target area and the weather climate has changed which the period of severe drought season gets longer a year after year. Many young women are now considered their skincare. So, you conducted a survey regarding to their skin concern by using Facebook platform. The result shows actually there are a lot of skincare items in the market so they are not so much worried about the quality and quantity of skincare products.
But there is an interesting fact which you found. About 50% of the young women who answer on your survey are vegetarian. Surprisingly, among the 80% of the vegetarian say they have a skin problem which cannot fix with any skincare product. Now, you define your niche market as young vegetarian and start to sell supplement products which can provide the nutrition that vegetarian tend to be short. Instead of selling similar kinds of cosmetic items as the competitors are already doing, you focus on the niche market by selling supplements especially for vegetarian. In other words, you are now stand out from the any other online cosmetic store but still succeed to obtain the customers.
Now that smartphone has spread to the market, many people start switching from laptop to smartphone. Some says 80% of the population now have a smartphone and even 50% of them do not have a laptop anymore. When you see the news, you go out to a busy town-street and ask 100 people if they have a smartphone and what is the big issue of using it. Many people say the network condition is not always good, so you first think if you can sell many kinds of wifi routers in your online store.
However, when you dig more on the target, you found that some of them say smartphone is super convenient but sometime it is very hard to read a long sentence. You notice that most of them wear glasses! So, you define your niche market as the people with glasses and decide to sell an attachable loupe to any type of glasses especially for reading on smartphone. Since there is no one who focus to sell the products in the market, you could easily obtain the leading share in the small market. Be more focus, and wiser.
Do not fight against giant competitors
If you still believe the mythology, “If you have a good product, people will come to you”, I will need to say that “you should forget it now!” This is not true logic in this current economic situation. You always should consider your audience first and focus on what they are struggling. The problem solving for a specific type of customer is the key to succeed on your online business. Once you focus to be the small pound and be a big fish, you are likely to start monetizing and get your business on truck.
Even you don’t have any product to sell and only have slim investment to start online store, you can still have a enough chance to be a successful shop owner as long as you follow and practice the niche market strategy.
Target small, and focus, focus, and focus. This is the way to start. Research, target, and focus on your niche. You are now ready to be a big fish on a small pond.