Market niches are market segments that are not yet or only insufficiently covered by the products of the established providers and thus contain potential demand for new products or new providers.
A manifest market niche (market niche) is characterized by the fact that there is a group of potential buyers who do not like any of the products offered. So there is no corresponding offer to match the existing demand. A new product that meets the needs of these people has a good chance of success there.
In a latent market niche (supply gap), the demand of customers is so intense that they would rather buy a product that does not meet their needs rather than go without it. If a better product is offered in this niche, it has good sales prospects.
Example: The term “market niche” became common in Germany in the mid-1960s, after BMW positioned what is now known as the “3 Series” in a niche not occupied by its big competitors. The success of this niche strategy saved the manufacturer from being taken over at the time.