Niche Market
Small segment of consumers with specific, often specialist needs underserved by mass-market competitors.
Real World
Lush Cosmetics targets consumers who want handmade, ethical beauty products — a niche ignored by mass-market brands like L'Oréal — allowing it to charge premium prices and build a highly loyal customer base.
Exam Focus
When 'analysing' niche markets, always evaluate both the benefit (premium pricing) and the risk (limited scalability).
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