Niche brands are better than broad brands Published

Niche brands are better than broad brands. Published by Colin Finkle on November 7, 2018 • A niche brand is one that is very meaningful to some people, but not applicable to most people. Niche brands seek to create deep relationships with a subset of potential customers, and ignore the rest. Niche brands include: Ferarri, Arc’teryx, Lorna Jane, DJI, Cabelas, Jeep, and 4 Chan. • Deep brands are ones that may appeal only to a much narrower set of people, but they create a lot of value to those people. These brands have lower revenue but are highly profitable. These brands are often called niche brands, and we are going to use the terms “niche brand” and “deep brand” interchangeably. • Niche brands motivate people. Firstly, people are appreciated that they are acknowledged by a brand for their uniqueness. Secondly, people are very grateful that someone has solved their niche problem. Thirdly, they appreciate community of like minded people the brand attracts. • A niche brand appears less likely to reap big profits in the future because they can only sell to a subset of customers by definition. But they are more apt to grow profits in the future because they have a base to build from and they have profits to invest into customer acquisition. • Niche also have the potential to become one of the great profitable companies of history, like Apple, Starbucks or Beats, if their niche rides a wave of popularity and becomes mainstream. The only caveat to the niche brand strategy is that it will take societal trends to bring a niche to the mainstream, and this is largely out of the companies control.