It’s widely accepted that in order to position your product appropriately in a crowded, populated and noisy market like China, you need to carve out a “Deep Niche”.
The narrower and deeper the niche, the better. And with such a large population available, and such vast diversity between the age groups in terms of consumer behaviour, disposable income and spending patterns, you can expect your niche to be more than large enough to sustain your whole China business (assuming you get it right of course!)
So what are the key elements to establishing a deep niche? Here are some thoughts:
Targeted – based on a well defined and properly researched target customer segment(s)
Differentiated – a clear value proposition which articulates a unique market position
Premium – appeals to aspirational consumers with an eye for quality
Prestigious – leverages a brand story with heritage, legacy and/or luxury elements
Leveraged – allows for the niche to be expanded or scaled up over time
Responsive – flexibility to adapt to rapid market change
As mentioned in yesterday’s Doing the Research, it goes without saying that, in order to develop a deep niche you need solid evidence of the target customer segment(s) that makes sense for your product/service and brand, and this will require some extensive research and an investment up front. The rewards for doing this thoroughly will come later.