Niche market development will help businesses save communication costs for promoting their products and reduce competition, experts said.

Nguyen Tuan, deputy director of the Investment and Trade Promotion, said the prolonged COVID-19 pandemic has seriously affected businesses, especially small and medium-sized enterprises.

To overcome the challenge, many businesses have been rapidly transforming their business models and reorganising production, he said.

They would need to join hands with industry business groups to study new market trends and changes in consumer habits after the pandemic to identify large and niche markets and reshape their business strategies, he added.

Developing niche markets is appropriate for small businesses in the fiercely competitive situation now.

It will help businesses greatly reduce communication costs for product promotion, lessen competition and increase the likelihood of success.

It will confer on domestic companies, especially small and medium-sized enterprises, advantages for developing e-commerce by learning about the culture and consumption habits of Vietnamese and market demand. They could develop e-commerce activities in the niche market with niche products.

A market with product diversification will offer benefits to consumers. In the long term, Vietnamese consumers will have the opportunity to get quality services and products at competitive prices.

Niche markets often serve new consumer needs, may not be large but are of high value, and so businesses must find the right niche through market analysis, establishing product portfolios, research, and developing new products, experts said. — VNS