There is a niche in the market, but is there a market in the niche?

In the past two years, life as we know it changed. New habits, new laws, new consumer behavior… a brave new world started unfolding before our eyes, and companies tried as hard as they could to adapt to this new reality.

Some expanded business -especially those, whose core business didn’t require a physical presence. Others became but a distant memory. But as a native “glass-half-full” type of person, I saw that amongst all the darkness in the world, there was a beam of light (and it was not a train heading towards me).

The common sense dictates, that the holy grail of business is to be able to find a business idea which is revolutionary enough to turn it into a profitable business. But finding a market gap in an overpopulated segment, might require more than just good ideas and money. Lucky is an underrated business element. Yet, the overly competitive environment we live in, has also some positive aspects: the more players we have, the greater is the downward price pressure and the even greater is the desire to stand out, hence innovation and quality are driven upwards. Nevertheless, amongst overly saturated industries we find people whose blue ocean strategies and ideas (to a certain degree) simply created a whole new niche in the market and bypassed competition entirely.

With the accession of C-19, business reinvented themselves, especially the entertainment business, whose digitalization of services were pushed to extremes. Theaters were closed, concert halls were closed, therefore the only venue for connection with the audience was “digital”. Throughout the world we saw the “live steaming” phenomenon: Artists performing concerts in their home, and digitally streaming it to the world.

What once would be something unthinkable, today is a new niche. The once USD 20 billion live music industry was composed of an extensive ecosystem -moving beyond the artist itself. Travel agencies, production companies, venues, ticket sellers etc… It was a booming market, until its main “money source” was taken out of the equation by an Apex Predator… a virus. To survive, they opted for livestreams, a market niche which was totally underdeveloped and mal-nourished. The question is then posed:

There is a niche in the market, but is there a market in the niche?

Artists often livestreamed special releases as part of their promotional schedules in the past, but now it’s the main event, and finding a way to incorporate that back into the concert ecosystem will be a challenge. While many of these livestreams are more intimate experiences that don’t compete with the size of festival crowds, its reach is beyond anything the idnsutries has ever experienced: about 17 million people tuned in to Bud Light Seltzer’s New Year’s Eve show, featuring artists like Post Malone, Steve Aoki and Saweetie. And every one of those online viewers is a potential future ticket buyer, easily retargeted when live shows return.

The short answer to my initial question is, yes! I believe there is a market in this niche, and even with the pandemic’s end into sight (again I am a half-full glass type), livestream music event programming is ramping up and this niche is here to stay.

yet, the question-title of my article is something all companies need to consider. We are constantly striving for the next best thing, for the differential… trying at all costs to find a new holy grail which will have a positive influence on the bottom-line. The danger we face is that, despite finding a niche and hugely profit in a time where companies are having difficult to hold their bearings as it is; companies need to be aware that not all niches can hold a market on its own and the long-term vision of companies will be the only guiding light in these turbulent waters.

To properly answer my question, I will add another one:

How well does the niche fit the company’s purpose?

What drives us, what guides us, and makes us wake up everyday is the trues sense of purpose, either professional or personal, and if the “new” found niche does not corroborate this purpose, chances are there is no market in the niche, and being in and out for the quick buck may be a risky move.

so, let me hear from you… what have you seen arising with the pandemic as new market niche, and which of them do you think will persist well beyond pandemics time?

Cheers

Marcos