How to identify a niche for your product in the United States

In America, success comes to those who capture a specific market segment

In America, a niche market can be as large as the entire export market in Europe. Identifying and dominating a niche is easier [and less costly] than trying to sell everything to everyone.

We are talking about a country with unique dynamics, a market governed by uniform rules, currency, and language, comparable in size to the entire European market. This is why targeting a niche in America means - unlike in Italy for obvious demographic reasons - reaching a market of hundreds of millions of consumers. This doesn't mean that generalist products can't appeal to a similarly generalist market: there are product types that are less suited for niche marketing. However, an Italian company aiming at the American market must analyze how its product can specifically address a precise category of consumers.
 

Why target a niche when planning entry into the American market

In a niche market:

• Needs are more specific and stronger, more felt
• The product is naturally differentiated from the rest of the market
• It's easier to identify the components of demand
• It's easier to build a differentiation of the product
• It's easier to create communication that resonates with the audience

Strategy for entering the USA: Competitor analysis

To start a niche business in the United States, it's essential first to analyze the market structure we aim to target. Simply check how many websites cater to that product category in the USA: using an online tool to search keywords and their density on sites, you can get an idea of how much competition exists online but also how many opportunities there are. If the topic attracts the interest of a substantial American community of consumers, but at the same time, there aren't many competitors selling that product or service, then an ideal opportunity emerges for the Italian company looking to export to the USA.
 

Market analysis for success in the USA: How to analyze the market

To stand out in a niche market in America, it's not enough to aim to be the only one, also because very few sectors are unoccupied by anyone. Once the relevant competitors are identified, it's necessary to study:

• how competitors communicate
• what others offer and their product positioning
• which products attract a larger following
• which ones are in higher demand but less supplied

These are all considerations to make in advance, before even entering the market, because the risk is investing in the production and distribution of the wrong products, wasting money and time on some variants that, for instance, we discover are not of interest to consumers.
 

An example of how to select a niche market for the United States and move from an undifferentiated product to a niche product

Let's think about wanting to sell leather jackets in the USA. Who buys leather jackets in America? Everyone and no one... meaning that stated this way, there’s no way to understand who to communicate with because my product is undifferentiated. It's unclear what need it fulfills.

So, let's consider selling "leather jackets for motorcyclists." Here, we already have a focus on the needs to satisfy. But we can go further. Analyzing the market for motorcycle products in America quickly reveals that a significant niche is made up of Harley-Davidson enthusiasts.

This group of enthusiasts "lives" in HOGs: Harley Owner Groups, and each has its own website or blog online from which we can gather important insights and feedback to improve the product itself.

At this stage, it's crucial to go beyond immediate interest (selling leather jackets) and try to understand interests, needs, demographics, education level, lifestyles, and income. This is the moment to understand what is most appreciated: quality, price, their relationship, delivery times, image/status, materials, etc.

This is because the goal is to outline as clearly as possible the structure of the niche and the needs of the consumers that compose it. Only if we know what they want, we know what to offer. And above all: only then can we learn to COMMUNICATE correctly.

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