If we look back over the past decade, one of the biggest developments was the emergence of business-to-business (B2B) furniture. This kind of furniture directly competes with the consumer furniture market that encompasses both online shops and offline shops that sell mainly household products. Online success of these online shops mainly stems from their marketing strategies and this is where business-to-consumer furniture differs from its competitors. Since the company does not engage in direct selling, it has to find ways of reaching out to potential customers who are not yet aware of the products and the company brand. Here are some of the key benefits of reaching out to this specific niche market:
A niche market is normally less competitive because of the absence of another company who has the same product. Because there is no competition, the price of the product becomes more attractive to the customers. The lack of competition also forces the company to adopt less expensive techniques in order to attract more customers, which ultimately leads to better quality and service. Business-to-business furniture is usually sold at a lower price since the company spends less on advertising and promotions and it still receives a higher return on investment because of its focus on improving customer satisfaction. This type of furniture usually caters to the needs of employees and executives who spend most of their time away from the office or home. As business-to-business furniture is cheaper than its mainstream market counterparts, it provides a cost-effective way of promoting the product and spreading the word about your company’s brand.
Another benefit of engaging in B2B retailing is that there is a lesser need for expensive advertisement and promotion campaigns, because people do not purchase products from online shops every day. This allows the company to allocate funds towards more important aspects of the business. Another advantage of targeting this niche market is that it is a smaller segment of the overall consumer base which has less purchasing power compared to the core consumer group. By tapping into the B2C market, companies can ensure that they will get an edge over their competitors by addressing the needs and interests of the small-scale target market.