Some products or services that are made or served for almost anyone which is called “General Products”, and, there are products or services that are made or served for a certain demographic which is called “Niche Products”.
Since General Products have a higher volume in sales, these products can be sold at a thin margin and still able to cover the cost.
Niche Products are made to sell at a bigger margin since the sales are less frequent “seasonal” and these profits will be needed to cover the company operating expenditure (employees, transportation, utility etc.) when the economy is slow down.
General Products have unlimited expansion opportunities, whereas, Niche Products are limited in expansion. However, this does not mean Niche Products are not sustainable.
The same goes for General Products, doesn’t mean they are “solid” and sustainable. When there are massive demands, there will new competitors enter to capture the market share opportunity. Nevertheless, there will be a new competitor with innovation that is more efficient and can replace the existing products. Sometimes, innovation can be cheaper to be made and can benefit the customers economically.
Niche Products can be sustainable if they are positioned in the right location and able to deliver the messages to the right potential audiences through correct marketing.
Niche Products that are sustainable “evergreen” usually carry a sentiment value of the brand. For example, the brand Harley Davidson, even there are many affordable motorcycles brands from Japan, Harley Davidson still survives after many years and till now. The brand symbol “strength”, and “unity” with a sense of belonging.
Niche Products are usually new and only have demand from early adopters. However, over time, with the growth of brands and their influences, it can be general products soon. Not only that, they are known as a pioneer brand in the industry. For example, Tesla will always or for a very long time, known are the pioneer of electric vehicle brands even other there are more other automobiles brands in the industry.
Since General Products have a higher volume in sales, these products can be sold at a thin margin and still able to cover the cost.
Niche Products are made to sell at a bigger margin since the sales are less frequent “seasonal” and these profits will be needed to cover the company operating expenditure (employees, transportation, utility etc.) when the economy is slow down.
General Products have unlimited expansion opportunities, whereas, Niche Products are limited in expansion. However, this does not mean Niche Products are not sustainable.
The same goes for General Products, doesn’t mean they are “solid” and sustainable. When there are massive demands, there will new competitors enter to capture the market share opportunity. Nevertheless, there will be a new competitor with innovation that is more efficient and can replace the existing products. Sometimes, innovation can be cheaper to be made and can benefit the customers economically.
Niche Products can be sustainable if they are positioned in the right location and able to deliver the messages to the right potential audiences through correct marketing.
Niche Products that are sustainable “evergreen” usually carry a sentiment value of the brand. For example, the brand Harley Davidson, even there are many affordable motorcycles brands from Japan, Harley Davidson still survives after many years and till now. The brand symbol “strength”, and “unity” with a sense of belonging.
Niche Products are usually new and only have demand from early adopters. However, over time, with the growth of brands and their influences, it can be general products soon. Not only that, they are known as a pioneer brand in the industry. For example, Tesla will always or for a very long time, known are the pioneer of electric vehicle brands even other there are more other automobiles brands in the industry.
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