Sometimes breadth brings strength. Other times, it’s depth. And in an increasingly noisy market, aiming your focus at the few – instead of the many – might be the most powerful way to truly stand out. A niche strategy is exactly that: focusing on a small, clearly defined target group with specific needs – often a segment that large players either don’t see, don’t prioritize, or simply don’t understand. And that opens the door for the rest of us.
I’ve written several in-depth articles about product strategy, and it now feels natural to give niche strategy a dedicated space – not least because I’m currently involved in a project aimed at lifting a niche offering into the spotlight and making it accessible to more people.
What Is a Niche Strategy?
A niche strategy is a targeted approach where you concentrate your efforts on a narrowly defined market segment. That segment could be based on:
- Specific needs or preferences
- Lifestyle, life stage, or personal interests
- Geography, age, profession, or other demographics
- Values, beliefs, or worldviews
The key is that the audience must be narrow enough to stand out, but large enough to be profitable.
Examples of Niche-Oriented Products and Services
- Adaptive sports gear for people with physical disabilities
- Vegan skincare for men with sensitive skin
- Travel agencies for single parents with kids under 10
- Digital platform for Sámi culture and language learning
- AI tools tailor-made for screenwriters
But sometimes, the niche doesn’t stay a niche. Some products or ideas begin in a subculture, a rarely spoken need, or a passion only insiders understand. Then something shifts. Interest grows, and suddenly you realize the niche had much more potential than first assumed. What started as a solution for a few becomes valuable for many – either because the need has always been there but went unnoticed, or because you managed to show people why it matters.
And sometimes, it’s not the need that’s new – just the way it’s presented. Many companies have operated in what they thought was a niche for years, never asking: does it really have to be niche? Maybe they’ve spoken too internally, too technically, or simply too narrowly. Then someone comes along with a fresh idea. A new language. A new approach. And suddenly, what was once “for the especially interested” becomes something everyone can understand – and want to be part of.
This is exactly where I aim to contribute in an international project I’m fortunate to be part of.
Why Choose a Niche Strategy?
Benefits:
- Less competition: Big players chase volume – not always value for smaller groups.
- Stronger brand loyalty: Customers who feel seen are more likely to stay.
- Higher willingness to pay: Specialized products solve specific problems – and people are happy to pay for that.
- More effective marketing: Clear messaging becomes easier when your target group is well-defined.
- Opportunity to dominate a small market: Better to be a big fish in a small pond than to drown in the ocean.
Pitfalls:
- The market might be too small to scale profitably
- Harder to find enough customers without solid research and testing
- Requires deep customer understanding and ongoing engagement
- Often demands customization, which can drive up operational costs
When to Consider a Niche Strategy
You should consider a niche strategy if:
- You have personal insight or experience with a specific group
- You’ve identified a clear unmet need
- You see low competition but high demand
- You want to build a loyal customer base
- You want to create something that truly matters – not for everyone, but for someone
Niche + Loyalty = Gold
A well-defined niche lays the groundwork for strong customer loyalty – because you’re solving a real problem for a real group of people. Combine your niche strategy with a thoughtful loyalty strategy (which you can read more about [here]), and you have a recipe for sustainable growth in a world where trust is perishable and algorithms change overnight.
Conclusion: Not for Everyone – and That’s the Whole Point
Niche strategy isn’t about playing small. It’s about being clear on who you’re for. When you dare to exclude the masses and instead focus on the few – and truly understand them – you can create solutions that are not only used, but loved.
And that’s often when it happens:
The few become the many.
And your niche becomes your greatest strength.
