The reason behind why niche marketing firms fails is discussed below. So let us check it out some information one by one to know more about niche marketing.
Some of the reasons for failure of niche marketing firms are :
- Too little or very less demand of niche product in the market.
- Niche marketing firms may have very less cash flow and they expands too fast. The firm may use cash flow to buy fixed assets and in return they left with nothing to pay short term bills.
- If the company has too little market share for more than one company they may fail.
- Firms dependence on just one product.
- Niche marketing may fail if they copy competitor's product and enter the niche market.