Did You Know: A Niche Becomes the Masses

Back in August, I posed the question as to whether a freelance writer should write for a niche or for the masses. In the end, I concluded that I could ultimately do both, focusing my energies on a particular niche or two, while still dabbling in other topics to help broaden my horizons. This strategy may or may not be effective, depending on the nature of your business. That said, at least one company has taken their niche and transformed it into something that is appealing to the masses.

Lululemon Athletica was founded in 1998 by Chip Wilson. It was a company that was clearly targeting the yoga crowd, offering clothing and other products for that particular lifestyle. The majority of their customer base was and continues to be female, but they also sell clothing for men and children as well. Yoga used to be an activity that was on the fringe and only a small group of people would actually participate. That has changed, especially in Vancouver where Lululemon is based.

It could be because of companies like Lululemon that yoga, pilates and other similar exercises have become so popular. Alternatively, it could be because yoga is getting popular that Lululemon has continued to grow. Whatever the case, Chip Wilson has rode the wave and made a bundle of money along the way. What started as a niche market has quickly become the mass market. I know far too many people who wear Lululemon clothing but have never even attempted a single yoga pose. They wear it because it’s comfortable and because it’s fashionable.

If you want to talk about success, you should check out what has been happening with the Lululemon Athletica stock. The company put forth an initial public offering at US$18 a share before making its TSX debut in late July for $28.99. Since then, the stock price has continued to rise, most recently getting an $8.14 jump yesterday based on new profit projections for the third quarter. Shares in Lululemon Athletica (TSX:LLL) hit an all-time high of $49.75 before dropping down to $48.14 to close the day.

This goes to show you that even if your initial business idea approaches a very specific niche, given the right circumstances and proper marketing, you can expand that niche (without departing from your core sales pitch) so that it appeals to everyone.

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