What is an niche?

A niche is a specific segment or specialization within a market. It refers to a targeted group of consumers, businesses, or organizations with distinct preferences and needs that are not fully served by existing mainstream products or services. Businesses that focus on niches can gain a competitive advantage by catering to the unique requirements of their specific market segment and developing specialized products or services that cater to their unique needs and preferences.

Companies that operate within niches often have deep expertise and understanding of their target audience, which allows them to effectively address the specific pain points and challenges that their customers face. By focusing on a niche market, businesses can differentiate themselves from competitors and build a loyal customer base.

For instance, in the smartphone industry, there are niches for gaming smartphones, foldable smartphones, and rugged outdoor smartphones, each catering to different preferences and needs within the overall smartphone market.