They are deals available for purchasing products that

are relevant for a targeted consumer segment. These

customer segments lie within a large marketplace

which have similar demographics, buying behavior,

and/or lifestyle characteristics. Examples include

food buyers who prioritize quality assurances and

source of production, and consumers who seek an

easy preparation available in convenient form. Even

consumers with the same buying behaviour may

have di�ering motivations. For example, organic

consumers used to be identi�ed by their concern for

their environment, but now there are entirely di�erent

segments of consumers who buy organics because

they perceive those foods as having higher nutritional

bene�ts. Understanding target consumer segments

is a crucial factor in determining whether an operation

has the resources, interests, and business elements

necessary to meet the needs of prospective customers.

What are niche product deals?NICHE

PRODUCT DEALSARE THRIVING

Why should you offer niche product deals?Better focused on a niche will help you gain more knowledge on that industry and thus serve the customers better, by increasing customer retention rate.

Serving a niche segment will help position your deal site better in the market which will help by providing exclusive deals to customers. This will encourage customers visit your site when they want the product you serve.

Servicing a niche segment will get you loyal cus-tomers which will help increases cost of entry into your segment for your competitors, which reduce the possibly of direct competition in the segment.

Lesser expenses increase pro�tability. The �nancial results of niche deal companies like Fab, Zulily proves the same.

It allows you to combine all your time and resources to satisfy a single customer segment which will help in better cost management.

Customer acquisition cost will be low since you have knowledge of behaviour of your targeted customers

HOW DO YOU CHOOSE A NICHE CUSTOMER SEGMENT?

REACHABILITYThe targeted customer segment should be something that can be easily reached, being di�cult will increase your acquisition cost

SUSTAINABILITYThe market segment should be sustainable in the long run. For example Mom market segment served by Zulily

COMPETITIONThere must not be too much of competition for o�ering such deals in the market

PROFITABILITYThe customers you are targeting must be pro�table to maintain

CRAVING MARKETThe deal should be actively searched for on the internet or other deal sites.

A quality customer segment should have the following features

Zulily is a niche product deals site which caters to ‘Mom market’, has become a huge success when top leaders in deal industry struggle to make pro�ts

SUCCESS STORY OF

Currently valued at more than

$7 billion

Active customers grew to

$3.2 million

Full Year net sales increased to 

$695.7 million, up 110% year over year

Zulily identi�ed that women account for half of the online market, they account for over 60 percent of online purchases

They identi�ed that best way to engage moms with a site is to pro-vide an environment for virtual window shopping

Zulily knew that in order to get moms to revisit their site they needed inex-pensive fashion for moms and kids

They used television ads to make site more relevant to the average individual, instead of being a one-o� shop and thereby earn credibility

Zulily did a great job in searching and establishing a great deal (more than 150) of consumer-familiar and newly-rising-brand partnerships

A user who logs onto Zulily.com or launch its app, is delighted to see new deals or events hosted by Zulily part-ners every day under “Today’s events”

They ensured the strategies they formulated were deployed in the least time possible or “Zulily Time” as they call it

SUCCESS TIPSPROFILE

by the end of 2013, an increase of over 1 00% year over year

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