View Full Version : stick to niche or offer run of the mill stuff as well?
23-10-2005, 01:28 AM
what are peoples thoughts on market position?
I'm in the process of setting up a company to exploit a part of a huge market which is not currently provided for all that well. But i'm wondering whether to stock run of the mill items related to the sector which lots of other companies are also offering (they don't offer the niche products however).
Will it help me sell more stuff or would it devalue and remove emphasis from the niche products which are the core business?
sorry to be woolly, but I want to be first-in-market with the niche products!
23-10-2005, 10:10 AM
I personally would go "niche" in a big market. It tends to be a lot better to be market leader for a small segment than lost among 1000ís of similar outfits.
The trouble with going for a big market is that you wont have the same economies of scale as the big boys (eg you wont be able to buy as cheap) and are quite likely to get quickly buried as you wont be able to offer any different to them, and probably an inferior offering in terms of range.
The question really is whether there is any money in the niche areas - i.e. why have the main players neglected this area? Also fundamentally (as with all businessses) how are you going to attract customers?
23-10-2005, 11:52 AM
Niche all the way.
23-10-2005, 11:59 AM
there's only a limited number of UK companies offering this product retail, and they're not advertising it heavily. We're aiming at all demographic groups within the market, currently nobody has products aimed at the higher end of the market (I honestly think it's becuase nobody has thought of it yet - it's a relatively new market) and also myself and bus. partner have the skills to create the items ourselves rather than just finding a wholesaler.
Our main range is going to comprise 3 broad areas:
1. high value in house designed and manufctured but low numbers
2. retailed off the shelf products bought wholesale from the US
3. low value/high volume own designed and manufactured items
currently nobody is offering nos. 1 and 3 above, and not many people in the uk are offering products which fit into no. 2
23-10-2005, 06:43 PM
It is often better to offer both, giving customers will feel better about their final purchase having decided themselves.
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