Niche Market |
Niche, noun: a distinct segment of a market. A niche market is built in the market and focus on a specific product. So the market niche defines the specific product features aimed at their satisfying specific needs in market, and price range, production quality, as well as the demographics that is to be impacted. (wikipedia, 2007) Niche market is a more narrowly defined group which basis on getting interests. In a nutshell, niche marketing is not just a single product promoted, also involves one part of a market by serving. (Kotle) A niche can be partitioned off a larger market in many different ways. It can consist of a certain population group, such as aged 25-35 of women; a certain consumer psychology group, such as golfers; and specific needs, for example someone who need a solution for back pain. (Moc Muise, 2010) So as we can see, the niche market is highly professional markets which try to live in the competition from numbers of supper companies. General speaking, there are at least five features in perfect niche market. First one is a narrow product market with a wide area, which has some ‘small gap’ for niche market. Second is a company from niche market has potential for sustainable development. Next is the company already has a good reputation to compete. Follow one is they should not afraid of strong contender. At the last, if there is not has a ruler in the industry, it will be a better environment for niche market. (ryan, 2011) From above features, we can see when a company has exact target customers into niche market, they can more effectively and completely satisfy demands, which will bring more high marginal revenue.
As we can do a broad observe, almost industry have niche market. There are two different companies in different countries which are examples for niche market. TCL is a successful electronics company in China. At the first the abbreviations is “Today, China, Lion” at the moment it stands for “The Creative Life”, (baidu, 2002). They define themselves to “an emerging power in China’s wave of globalization”. TCL founded in 1981, it is one of the largest consumer electronics enterprises in China with a global presence. (TCL.com) Why it is a successful niche market’s company? From 1981 to 1991, TCL has been created of the brand, registered their trademarks, and began to establish a marketing network in China. At that time, they was mainly sale phone. (TCL history, 1991) In 1992, the large-screen TCL King TV was developed and produced. Although the color TV industry giants have been existed at that time, such as Panasonic, Sony, the large-screen TV was still be a gaps in the Chinese industry, so TCL was successfully gained market recognition. Then the same time, they began to introduce the CI system, thus they became one of the earlier companies to implement the CIS 1991. (TCL history, 1998) Now, we can easily know the reason for TCL’s success, at the first, before they stage of rapid development, TCL’s brand was established and nationwide sales network was built. Secondly, TCL found a commercial opportunity that was ignored in the majority of the Chinese market. In addition, they have adequate technical potential to development, when TCL insist on researching and developing CIS technology. Moreover as can be seen they are not afraid of a rat race in themselves defined. Those successful reasons are total compliance with the niche market company’s features. Nowadays, TCL has become a powerful international company, in my opinion TCL should consist to focus on technology research and development in the future. From the report, the company is expected to reach RMB 1.8 billion in 2012. Their major focused research areas will be “the next generation of home appliances products and 3C integration-focused digital home technologies”. (TCL R&D, 2009)
Another company in niche market is Holland and Barrett, it is the leading...