Aspect |
General (Broad) Niches |
Specific (Narrow) Niches |
Marketing Costs |
Higher marketing costs due to a broad target audience. |
Up to 50% lower marketing costs by targeting a specific audience. |
Customer Engagement |
Lower customer engagement rates. |
Increase customer engagement by 70%. |
Competition Level |
High competition in saturated markets. |
Less competition, facing up to 70% less competition. |
Customer Loyalty |
Lower customer loyalty due to lack of specialization. |
Boost customer loyalty by 60% through specialization. |
Market Positioning |
Positioned as a generalist trying to appeal to everyone. |
Positioned as an expert in a specific area. |
Examples |
General e-commerce, social media platforms. |
"Yoga for Lower Back Pain", "Plant-Based Nutrition". |
Growth Potential |
Slower growth due to market saturation. |
High growth potential in emerging sectors (e.g., fintech projected to grow by 23% by 2025). |
Authenticity and Passion |
Harder to convey authenticity; may lead to burnout. |
Aligns with personal expertise; 45% of successful entrepreneurs are passionate about their niche. |
Market Saturation |
Highly saturated; difficult to stand out among 24 million e-commerce websites. |
Emerging markets less saturated; opportunities to become a market leader. |
Advertising Spend |
Requires more advertising spend to reach a broad audience. |
More efficient ad spend by targeting niche audiences. |