Is There any Investment Potential in Specialist Product Ranges?

This article questions whether or not there is investment potential in specific niche product ranges, exploring various sectors.

Making a Niche

There are several great examples of products from around the world that could be classed as belonging to a certain niche. These can, however, be categorised further.

A niche product can either be a product that is only relevant or popular at a given time of the year, or a product that is targeted only at a specific demographic and market. Examples of the former could be Christmas trees or perhaps even fireworks. The latter might be luxury food items or designer clothing.

With both examples having such a small window in which to achieve success, is there any investment potential in these and similar products?

Time of Year

Depending on the product, there is definite scope for successful long-term investment in items that are only popular during a specific period of the year. Even the biggest general businesses experience peaks in activity that they use the rest of the year to prepare for as best they can. One way to ensure that you are going to get a return on investments into these areas is to get involved with the business as much as you can, especially if you have expertise in an area that could help the business.

investment

Photo source: http://www.flickr.com/photos/mdgovpics/6517973153/

While a fireworks company may do the vast majority of their business in November and December, for example, they are still operative throughout the year chasing sales to those looking to celebrate a special occasion, or to corporate clients. If you have business development experience and are able to be hands on with your investments then there is a definite opportunity here. Fireworks suppliers and other similar businesses such as Christmas tree sellers, for example, are constantly working to ensure they have a place in consumers’ minds all year round.

Quality Products

Although the target market for high-end, quality products is relatively small, there are great investment opportunities so long as demand for the goods in question remains at a high level. If you were to invest in a business marketing and selling quality products, then you would be best to seek assurance around the continued quality that will be on offer. It can often be challenging to maintain healthy margins, and as such the production cost can be driven down, having a detrimental impact on the quality of the final product.

It is also worth noting that a lot of higher end products tend to go through “fad” phases of being popular, before being replaced by something else, when considering investing in the longer term.

Fireworks Crazy is a premium fireworks display and ecommerce website in the UK.

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