Small niche markets offer big potential
By Melody Caban

Small niche markets can offer big potential for destination retailers.

While bustling crowds at major attractions still fuel many gift shops, a strategic shift toward smaller, specialized tourist groups — known as niche tourism — can unearth significant potential for savvy retailers. These travelers, driven by specific passions and interests, often seek more meaningful and relevant souvenirs than the typical mass-market fare.


Niche tourism (also called special interest tourism) is all about diving deeper. This shift has created numerous micro-markets within the tourism industry.


There’s adventure tourism, where thrill-seekers are interested in activities such as rock climbing, whitewater rafting and mountain biking. With culinary tourism, foodies explore an area for local flavors. Some embrace heritage tourism to connect with their roots and cultural history. Other people enjoy film or TV tourism, visiting locations from their favorite shows.


"Specialized tourist groups can unearth significant potential for savvy retailers."


Tapping into one or more of these markets might be the key to unlocking new revenue streams for your store.



Identify regional tourism trends

To capitalize on opportunities, retailers must first identify which specialized markets are growing in their region.


Retailers can engage with local tourism boards and specialty tour operators in town to learn about tourism trends. These agencies and operators often possess valuable data on visitor demographics and emerging interests.


Social media is also a great tool for trend spotting. Review how visitors are tagging your destination’s location on social media platforms.


Last, but not least, listen to your customers. Ask what brought your customers into town, and you might be surprised by what you hear!



Tailor your merchandise strategy

Once you’ve identified promising niche markets in your area, determine the approaches you will take to better serve these specialized visitors. One technique is to create dedicated sections in your store that target specialized tourist groups.


Destination retailers might also want to work with local artisans to develop custom product lines specifically designed for identified niche markets. For example, if your area attracts astronomy enthusiasts, commission locally made star charts featuring your region’s night sky.



Know your niche

Ready to serve your community’s niche market? The key is to remain connected to your local tourism ecosystem. By understanding the desires of travelers visiting your area, you can transform your merchandise strategy from a one-size-fits-all approach to a carefully curated selection that resonates with niche tourism segments.



Melody Caban is founder of Melody CabAn Consulting, a Latina-owned consulting service that cracks an urgent problem facing museums. Learn more at www.melodycabanconsulting.com.