How to find your beauty niche

When it comes to business and marketing advice, a lot of people will suggest “finding your niche”, but what does it actually mean and how can you find yours? We’re demystifying how to find your beauty niche so you can build a thriving career in the beauty industry.

Here’s everything you need to know about spotting an opportunity and finding your beauty niche.

 

 

What is a niche?

In business, a niche refers to a specific segment of the market that offers goods or services to a particular set of needs, preferences or demographics. A “niche market” usually has a narrow focus, serving a smaller, specialised subset of customers rather than the broader market. It addresses a specific need or problem that may not be met by larger, more general businesses.

Niche businesses can tailor their offerings and marketing strategies to reach and appeal to their target market. Customers can be willing to pay a premium for unique or specialised offerings that meet their specific needs or preferences.

While a niche audience is usually smaller, it can be easier to spot and convert opportunities as they’re primed and ready to hear what you have to say. Niche markets also usually have fewer competitors, which can provide opportunities to establish yourself as an expert or leader.

A niche business also has the opportunity to develop deeper, more personalised relationships with their customers. This can lead to increased customer loyalty, repeat business, and positive word-of-mouth referrals within the niche community.

 

5 ways to find your beauty niche

There are a few different ways to think about finding your niche and what your target audience can be. Here are some ways to think about finding your beauty niche, along with some examples of niche businesses.

 

1.  By demographic

Divide your audience based on demographic factors such as age, gender, income level, education and occupation. This helps you understand the specific needs and preferences of different demographic groups.

If you're focusing on skincare, you might target young adults in their 20s who are looking for preventative skincare routines or an older generation  interested in anti-ageing products.

 

2.  By location

Segment your audience based on their location, such as country, city, or area. This is especially useful for services that are location-dependent or for targeting local trends and preferences.

If you're looking to offer freelance beauty services, you might focus on urban areas with a high demand for on-demand beauty services or specific areas known for hosting frequent events.

 

3.  By interests and lifestyle

This involves dividing your audience based on their lifestyle, values, interests, and personality traits. Understanding the psychographics of your audience helps in creating content and products that resonate deeply with their lifestyle choices.

For example, you might decide to target eco-conscious consumers by offering organic and cruelty-free beauty products or cater to busy professionals with quick and effective beauty solutions.

 

4.  By behaviours

Segment your audience based on their behaviours, such as purchasing habits, brand loyalty and product usage. This helps you identify customers who are most likely to engage with and purchase your products or services.

You could focus on frequent buyers who regularly purchase beauty products and might be interested in a subscription box service or those who follow beauty influencers and are likely to try new trends.

 

5.  By benefits

Identify groups of people based on the benefits they seek from beauty products and services. This segmentation helps you understand what motivates your customers' purchasing decisions.

For example, you might choose to target customers looking for long-lasting makeup solutions, those seeking all-natural skincare remedies or people who are interested in professional haircare products.

 

 

Examples of beauty businesses and their niche

To help you understand potential beauty niches in a bit more detail, here are some niches that already exist in beauty. We’ve also included some examples to help you to visualise the niches we mean.

 

Clean beauty

Brands focused on using natural, non-toxic and environmentally friendly ingredients in their products are known as clean beauty. Their target audience is customers who share that interest and want to buy products that don’t contain certain ingredients and are better for the environment.

Ilia Beauty is known for its clean, high-performance makeup products formulated with organic ingredients and sustainable packaging. This is the type of brand that works in the clean beauty niche.

 

Male grooming

This is based on demographic targeting, and as a niche it caters specifically to men's skincare, hair care and grooming needs. This is a smaller audience than women’s beauty, but there’s still interest there.

An example of a brand in the male grooming niche is Harry's, is a men's grooming brand offering high-quality razors, shaving creams, and skincare products.

 

Hair care for textured hair

Brands that cater to the unique needs of textured, curly and coily hair types with a range of products specifically designed for that purpose. This is based on needs, interests and lifestyle.

SheaMoisture is an example of a haircare brand for textured hair. They offer a wide range of hair care products formulated with natural and certified organic ingredients to nourish and hydrate textured hair.

 

 

How to choose your beauty niche

Choosing a niche for your beauty business is an important decision that can really impact on your success and differentiation in the market. Here are some steps to help you choose a niche that aligns with your interests, expertise and target market.

Start by evaluating your own interests, passions, and skills within the beauty industry. Consider your background, training and areas of expertise. Reflect on the aspects of beauty that you are most passionate about and where you excel the most. Choosing a niche that aligns with your interests and expertise will not only make your work more enjoyable but also position you as an expert in your chosen field.

It’s also important to research market trends and opportunities. There is such a thing as going too niche, which may not leave you with enough customers to run a sustainable business. You need to assess the profitability, viability and market demand of your niche. You can always test out your niche and validate it before you dive in.

Conduct thorough market research to identify current trends, gaps, and opportunities within the beauty industry. Look for emerging trends, consumer preferences, and underserved segments of the market. Analyse competitor offerings and customer feedback to identify areas where you can differentiate yourself and meet unmet needs.

Identify what sets your beauty business apart from competitors and defines your unique value proposition. Your USP could be based on factors such as specialisation in a specific beauty service or treatment, use of high-quality ingredients, personalised customer experience, sustainability practices or the latest tech. Highlighting your USP will help you stand out in a crowded market and attract customers who resonate with your business.

 

Why should you not niche your beauty business?

While finding a niche for your beauty business can help you to target your customers and stand out in a crowded market, there are also potential downsides to consider. One is significantly limited market reach.

By focusing on a narrow segment of the beauty industry, you may exclude a large portion of potential clients who are interested in a broader range of services or products. This can be particularly challenging in smaller markets where the niche customer base might be insufficient to sustain long-term business growth.

Another downside of  creating a niche for your beauty business is the increased risk associated with market changes. Trends in the beauty industry can shift rapidly, and a niche that is popular today might become less relevant tomorrow. If your business is too heavily reliant on a specific trend or demographic, you could face significant challenges if consumer preferences change.

Diversifying into new services or products can be more challenging if your brand is strongly associated with a specific niche. This strong association might make it harder to attract new customers outside your niche, especially if you decide to pivot your offering.

 

Should you niche your beauty business?

Deciding whether to niche your beauty business is a choice that depends on your circumstances and your business. Finding your niche can be highly beneficial, offering a focused market with less competition and a loyal customer base.

By specialising, you can hone your expertise, tailor your marketing efforts more precisely, and build a reputation as an authority in that specific area. This can lead to a more dedicated clientele and potentially higher profit margins, as customers may be willing to pay a premium for specialised services and products.

However, the decision to niche should be balanced against your business goals, resources, and the market environment. If your target market is too narrow, you might struggle to attract enough customers to sustain your business. A broader approach can mean you appeal to a wider audience. The beauty industry changes so quickly, that it isn’t always wise to keep all of your eggs in one basket.

The decision of whether to create a niche for your beauty business depends on a careful analysis of your strengths, target audience and market conditions. Conduct thorough market research to understand the demand for specialised services in your area and assess whether your business model can support a niche focus. Consider your long-term vision and the unique value you can offer to your clients.

 

 

Specialist hair and beauty insurance through Ripe

Whether you’re a hairdresser, beautician, or nail technician, insuring your beauty salon through Ripe can help provide financial protection and peace of mind should the worst happen.

Ripe specialist hair and beauty insurance includes Public and Products Liability cover as well as treatment risk cover, with the opportunity to build your own policy so you’re never paying for more than you need.

Find out more about specialist hair and beauty insurance through Ripe or get a quick online quote today.