Niche markets, or specialized areas of demand for a product or service, are key to generating an income whether it be an online or offline business. We are going to discuss a very simple concept that will allow you to identify a pet related niche and how you can then use that niche to generate more income.

Let’s start with the very basic category of pets. If you decided to sell pet products on the internet, this category would be very broad and would immediately put you in competition with extremely large online and bricks-and-mortar suppliers like Petsmart.com for example. So, rather than competing with companies that have been around for many years and will definately have greater advertising and financial resources than you have, you will want to dig a little deeper and find a niche that you can focus on while building your business.

Some people immediately think that by focusing on a smaller niche that they are limiting their number of potential customers. That is true to a certain degree. However, it is often far more profitable to have a smaller group of customers that truly want what you have to offer than a larger group that is being bombarded by hundreds of your competitors.

So, let’s get back to our primary category of pets. We have already determined that this group is way too large and that you will need to be more specific. Here are some possibilities…

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The retail luxury sector continues to see accelerated growth with Neimans, Nordstroms, etc. all reporting significant increases over last year and many exceeding targeted expectations. The demand for luxury in all categories is projected to increase well into 2006. This trend carries into the pet industry with a growing demand for interesting designs, fabrications and style. The customer that is buying from key designers such as Dolce & Gabanna, Armani, Chanel, and Gucci are all clients that buy because of what the brand represents. Quality, style, design, sophisticated taste level and recognition in the marketplace. This is the customer that represents the true luxury market.

The luxury sector of the pet industry has been targeted as a category with the most growth. True niche luxury products are beginning to surface in the pet industry due to the trend in the marketplace and the increase in consumer demand. Pet carriers are a prime example. Two years ago, the highest price point on many websites for a pet carrier was $199.00. Now, the category has grown due to demand with price points now from $400 – $600. The requirements of dog carriers today are for Italian Leather, quality hardware and workmanship in the construction of the bag. Carriers are now doubling as a handbag as well as a dog carrier. This has resulted in the need to raise the standards on pet carriers to accommodate the luxury client. Fashion, quality, function have now become synonymous with what a pet carrier must represent.

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