Advantages and Disadvantages to Working with a Niche

This week I’m talking a LOT about how finding your niche will help your yarn business grow.

However to keep things real I’m also sharing here a couple of the disadvantages to niching down.

By definition, a niche market is a subset of a market on which a particular product is focused.

Niche marketing defines product features, production qualities, demographics and price range to satisfy specific marketing needs.

It is a highly specialized market segment, which targets a niche of particular enthusiasts and aims to survive among the competition from numerous super companies. Niche marketing is a useful approach, which can help businesses to increase their bottom line.

For example I’m a business coach and my niche is working with Yarn based businesses.  I love yarn, I love helping people to create their best business maps to suit their current situation, and I adore organisation and planning.

So I chose to work with time limited, yarn based businesses looking to grow and serve their customers as my niche.

Niche marketing is extremely cost-effective. For instance, if you are offering a product for a selected demographic, you could advertise the product using a local media so that marketing budget goes a lot further, allowing you to use a more comprehensive media mix. Niche marketing works best when you understand the market.

Understanding the market means you are able to identify the unique needs of your potential audience, provide new and compelling products, tailor your products in the right way, communicate efficiently with the target group and identify how you will position against your competitors.

Advantages & Disadvantages of Niche Marketing:

Less competition

Unlike in generalised marketing where market competition is stiff, niche marketing has quite less competition for the viable customers purchasing the products.

Brand loyalty

Niche marketing makes it possible for businesses to build their brand loyalty. This marketing approach lets you provide customers with products and services they need and desire. You end up having a leg up on the competition because items in a niche market are difficult to find in general products.

Best for giving marketing insight

Niche marketing is all about selling to a segmented market. It is about taking your products to people who have an interest in receiving them. This can help you redefine your business, leading it in new directions for products and services. You will end up creating new opportunities for your business by selling similar or support products. Once you begin to concentrate fully on niche marketing, you will learn about new products, innovations and ideas about the market.

Saving on your marketing dollars

This is a type of marketing where you will never throw away money hoping for returns. Niche marketing makes it easy for you to save on your marketing dollars. Generally, you do not have to send over ten thousand flyers to one or several neighborhoods. Instead, send less than a thousand flyers to a target audience that meets the requirements for your niche. With this approach, you will be able to reach a larger percentage of people who are more likely to use your services or purchase your products.


Because of the smaller market size, this marketing approach is not suitable for a company that is small and intends to grow in the current market using traditional methods. The smaller market can make it difficult to enjoy a larger profit in the market.

Among the advantages and disadvantages of niche marketing is that there is limited growth because there is a smaller group of customers to buy products.


I believe the benefits seriously outweigh the disadvantages but this is something you must decide for yourself.  Check out these amazing designers who have cracked their niche and can tailor their marketing for maximum effect and minimum budget.

You can watch a Facebook Live video about niches here.

Have you identified your niche? Share it with us in the comments!

Bye for now,

About the Author

The Founder of Yarn Academy Babs is all about inspiring others to find their creative juices. Babs finds it exhilarating to learn as many new techniques and skills as humanly possible and explore the entire world of yarn. Babs is always looking for the win win solution to any situation so we can all grow together in the wonderful world of fibre and colour.

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