Finding your niche is similar to being a master of one rather than a jack of all. It’s about positioning yourself as the go to and trusted brand for a specific product by a specified audience. It establishes your credibility, helping you build a customer loyalty because you focused on your products, services, and marketing efforts cohesively. Think of it like building a dedicated following on Instagram by consistently posting relevant, high-quality content.

If you find a consumer market interesting, there are numerous ways to segment the market that can help you get to a niche such as:

1. Demographics: Age, gender, income level, education.
2. Psychographics: Interests, values, lifestyles, and attitudes.
3. Geography: Specific regions, cities, or neighborhoods.
4. Behavior: Purchasing habits, brand loyalty, product usage.
5. Problem-Solution Fit: Focus on solving a specific problem that a particular group faces.

For example, if you want to sell lip-care products, instead of appealing to everyone, target a specific group from one of the segments mentioned above. Let’s divide the market by demographics and select gender to target men. Then, identify how many men use lip-care. This number is relatively easy to arrive at. Most of the bigger FMCG companies have conducted some research to arrive at an approximate market size. Let’s say, in our case it is 50,000 men use lip-care.

To find a niche within this market, take specific verticals. You need to figure out if your target audience is affected by scent of the lip-balms or not? If not, move to a different vertical such as packaging. Compare the available packing and study if they all follow any specific styles? Are they feminine, neutral or masculine? If your research concludes an absence of either styles, it can be a potential indicator of a niche. Let’s say most packing available in the market is either feminine or masculine. This means the current lip-care market has a potential for a brand that offers lip balms or lip scrubs to men in neutral packaging. This group is your niche, it represents a specific market segment with unique needs. Your brand should then focus on creating products and marketing strategies tailored to them.

TL;DR? Here’s the shorter version:

Steps to Finding Your Niche:

1. Identify Your Interests and Strengths: Choose a niche that aligns with your passions and expertise.
2. Research Market Demand: Use tools like Google Trends and keyword research to gauge interest in potential niches.
3. Analyze Competitors: Study successful businesses in your potential niche to understand their strategies and identify gaps.
4. Define Your Target Audience: Be specific about who your ideal customers are and what they need.
5. Validate Your Niche: Conduct surveys, interviews, or pre-launch campaigns to ensure there’s sufficient demand.

By narrowing your focus to a specific group and understanding their unique needs, you can position your eCommerce business to stand out and meet those needs effectively. While competing in a broader market is possible, competing in focused niche markets is a lot easier and you’ll see profits much quickly!