In a global market where small businesses compete with large retailers and importers — both online and offline — some New Zealand manufacturers are finding success with niche products produced in small runs. The goal of these companies seems to be to carve out a place where they aren’t competing with the larger companies, so they aren’t affected by imports from Asian countries and other overseas competitors.
Making the Most of Niche Manufacturing Products
Niche manufacturing begins with strong research and development that lets brands identify a highly targeted sector of the market and what needs or concerns that sector is dealing with. The company can then design and create products that answer exactly those needs; because customers tend to be willing to pay more for products that truly meet their needs or are unique from other things on the market, niche manufacturers can score a higher per-product margin than some larger manufacturers can. That helps them succeed with smaller product runs.
If excellent research and development is the foundation of niche manufacturing success, strong marketing and branding are the walls that need to be built on top of it. Niche manufacturers can’t always afford large television campaigns, so online marketing often works best. Word-of-mouth becomes extremely important because it’s still one of the best ways to get information about a specialty product out to a tight target audience.
One of the things niche manufacturers and associated businesses are finding success with is influencer marketing. If your business is targeting an especially tight target audience, chances are the majority of that audience is already tuned in to one or more influencers. These may be radio broadcasters, YouTube stars, social media enthusiasts or simply someone in the local community with a big network. Niche manufacturers that can get influential voices on board with the brand or product can see sales increase without large marketing spend.
Partnering with Niche Retailers and Drop Shippers
Another way to make niche manufacturing work is to partner with retailers and drop shippers who have the same missions. Local retailers are often looking for ways to differentiate themselves from large chains and online eCommerce shops, and unique merchandise is sometimes how they do that. Manufacturers can work with retailers in disparate locations and retailers are often happy to be the only shop in the area that offers a certain type of product. For areas where such a relationship doesn’t seem possible, manufacturers can work with drop shippers or online retailers — or sell their own products online — to reach more of their target audience.
Some niche manufacturers do grow and become larger companies. Others stay happily in the niche market and reap a stable profit alongside manageable growth. Both types of businesses can be a good investment, depending on where your priorities and personal goals lie. By working with a broker to vet potential businesses before you buy, you can understand exactly what type of growth you might be looking at and whether a niche manufacturing business is the right investment for you.
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