Why dont companies make jeans brands solely for overweight people?
Why dont directors make film solely for intelligent, matured audience?
Why dont hair salons exist that specialize in curly haired women only?
Thats because these are specialized services that is required by only a niche audience. And knowing niche, there is not much number there – both in terms of addressable market and profit.
Which is why businesses would rather cater to a mass market where there are already 10 competitions, rather than catering to a niche market where there is no competition. Think big, they might say.
Is this a valid strategy? Absolutely. The big question however is not that. The big question is can businesses continue to do that as a sustainable business strategy. When everyone moves to live in city center, the city becomes unlive-able and people move to suburbs. In the same way, when mass market becomes overcrowded, margin becomes thinner. And inevitably business will move to niche, untapped segment.
So why not make a first, proactive and timely move, right now?