Instead of creating a resort that was 'okay for everybody,' Sandals founder Butch Stewart made it 'great for one killer use case.' By positioning as 'couples only,' he eliminated the conflict between romantic vacationers and families with kids, creating a premium, focused brand that owned its niche.
Numi's undershirts are used by nurses, flight attendants, and menopausal women, but their marketing focuses narrowly on the "professional woman." This avoids diluting the message. Trying to speak to everyone results in speaking to no one; a narrow focus creates a stronger brand identity and more effective campaigns.
Instead of lowering prices to capture a wider audience, Scarlet Chase embraces a high-end niche. The founder's philosophy is that diluting the product's quality for broader appeal is a mistake. The strategy is to deliver exceptional value to a focused group of customers who can afford and appreciate the investment.
Instead of viewing niching as restricting business, adopt the "FOCUS" mindset: Fix One Clearly Urgent Struggle. This forces you to solve a high-value problem for a specific audience, which positions you as a category of one, much like the water brand Liquid Death.
Instead of diluting messaging to appeal to everyone, embrace what makes your product unique—even a polarizing ingredient. Targeting the passionate niche who loves that ingredient creates powerful evangelists and a strong initial base, which is more effective than achieving a broad, lukewarm reception.
Gymshark's CMO explains their strategy is to be hyper-focused on their core gym audience, even if it alienates others. Quoting an article, he says the world needs more brands "willing to have enemies." This mindset prevents brand dilution and strengthens their identity by not trying to be everything to everyone.
To find the best locations for new resorts, Butch Stewart didn't just browse listings. He adopted a first-principles approach, renting a helicopter to fly over islands and scout for undiscovered, pristine beaches. This allowed him to acquire unique properties and build a competitive moat that others overlooked.
Niching down doesn't limit your market; it clarifies your value proposition for an ideal customer. This extreme specificity about your product's strengths and weaknesses also appeals to a much larger adjacent audience, who can now confidently evaluate your trade-offs and decide to buy.
Trying to appeal to everyone from the start creates a weak brand with no impact, like a small bush. Instead, focus intensely on one core promise for one clear demographic. This builds a strong foundational 'trunk,' allowing you to branch out with stability and greater reach later on.
Resisting the temptation to be a 'jack of all trades' is crucial for profitability. Specializing deeply in one service establishes you as an undeniable expert, which allows you to command premium prices and deliver a superior experience that generalists cannot replicate.
Many founders fail not from a lack of market opportunity, but from trying to serve too many customer types with too many offerings. This creates overwhelming complexity in marketing, sales, and product. Picking a narrow niche simplifies operations and creates a clearer path to traction and profitability.