what is a niche market a niche market is a very specialized focused targeted Market it is a market that represents a small percentage of all customers the wedding cake market for example is a niche market a very small percentage of the population is interested in buying a wedding cake at any one time suppliers to Niche markets create custom made products or services for their Niche consumers low carb foods is a niche market companies that sell low carb foods Target people who have specific dietary requirements Shopify has the following definition of the term a niche market is a subset of a larger market with its own particular needs or preferences which may be different from the larger market some markets are too big to be called Niche markets the market for men's shoes is a mainstream market half the population is still very big it is not specialized however shoes for plus-sized men or male soldiers are Niche products Niche markets may represent an opportunity for small companies to compete against larger corporations that dominate the mainstream market however some giant corporations such as Toyota have mainstream and Niche cars Lexus for example is a luxury car it has a niche car most large markets have subsets with specific characteristics the makeup Market is huge but within it there are Niche products for people with sensitive skin professional artists Etc focusing on a niche market offers several benefits businesses may enjoy greater conversion rates higher margins more effective sales strategies as well as customer loyalty marketing Personnel who Target a niche audience are involved in Niche marketing they Channel all their marketing efforts towards a specific segment of the population