Is niching otherwise a profitable business?

Is niching otherwise a profitable business?


Yes it is. Firms which have a small market share can earn fast profits through niching. It follows the policy of working smart but not hard enough. The market nicher knows his target customers really well and establishes a comfort zone for them so that they keep coming to him for their purchases. As a result, he follows exclusive pricing strategies for his products which his customers are willing to pay at all costs, and that’s how he lands up earning a high profit margin within a short span of time.

Branded jewellery like Tanishq by selling gold jewellery of exclusive designs have gained considerable name and fame in the niche market under the gold segment.
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