Entering a crowded niche segment with the help of your daily deal platform
Daily deal websites have come a long way. With changing market conditions, there is a need to evolve from traditional daily deal concepts. It goes without saying that to maintain the success of a daily deal website, identifying market segments where profits can be maximized is key. This is where niche markets come into play. This allows you to cater specifically to a select group of customers. This can minimize the expenditure of resources as there is an existing active group of consumers who are relevant to your efforts, products and viability. All that remains is to choose which niche to focus on. There would be doubts for someone who is new to online commerce, and seeing markets populated with various businesses, the easy way out would be to simply enter untested waters, which here is sparsely occupied niches. Naturally following the first argument that comes to mind, lesser competition, greater dividends.
With our experience in the ecommerce industry here at Oorjit, we can affirmatively say that entering an unoccupied niche can demand a lot and may not be viable for someone new to the industry. Lack of competitors might seem appealing, however, it can also represent the absence of customers and therefore, a market. It would be hard to establish yourself when there are no customers in the beginning and that there are no other players.
The advantages, however, of entering a market with a healthy number of competitors is that one can observe trends. Strategies. Responses. In effect, one can get a picture of what awaits them once they enter the field, and what they can do, and have a pre-observed idea regarding strengths and weaknesses, all which can only aid in your decision-making. You can take what market leaders are doing in their specific segment or target area, analyze, study and try to develop your own ideas which you can bring to the table. Whilst not copying or stealing growth strategies, one can often find a new way of approaching things with this approach.
In short, entering a competition laden niche market with your daily deal site, while being competitive, is not as risk-prone as entering a market where there are players in the segment whatsoever. Choosing the right niche can help you to target and engage a specific set of people, and subsequent efforts can be focused on improving their buyer experience rather than engaging in targeting everyone in general.