As the name suggests, nice retailing is the practice of selling only to a specific market segment. Nice retailers specialise in one particular type of products or similar products. The more narrowly a niche retailer can define his target market, the better. While niche retailers may not appeal to a broad group of consumers, they meet the special demands of smaller groups they target.
Here are examples of niche retailers:
- Volvo Trucks
- Sports channels like STAR Sports, ESPN, STAR Cricket, and Fox Sports target a niche of sports enthusiasts.
In fact, niche marking can be very cost effective. A business could invest time and resources in offering better products/services for a select demographic or ethnic group. Meeting unique needs, speaking their language and positioning are three things a niche retailer has to get right to stay competitive.