Since the launch of the UAE’s first ecommerce platform, the souq, in 2005, marketplaces have shuffled the way people shop in the Middle East. They made it possible to fulfil all the needs in one place and with one click — from household products to fashion brands and furniture.
Yet, general or horizontal marketplaces like Amazon, Alibaba, or Noon overlooked something that customers urgently seek in e-shopping. Unlike all-encompassing platforms selling an array of products, niche or vertical marketplaces cater to a specific customer segment and product category. Airbnb, Etsy, Ounass or Namshi, these vertical platforms attract buyers who already know what they're looking for, leading to higher conversion rates and greater customer satisfaction from buying experience.
Purpose-built, niche marketplaces have the potential opportunity to capture market share from general e-commerce giants by offering customers an enhanced shopping experience tailored to specific consumer preferences and industries. In some cases, it's better to think small rather than big.
Managing expectations
Niche marketplaces excel in offering precisely what their target market seeks, tailoring product features to those specific needs. For instance, a food marketplace prioritises information like ingredients, nutritional value, allergens, and calories, while a clothing platform emphasises factors like size, fabric, and virtual try-on options.
Although it's possible to combine various product categories on a single marketplace, creating a truly exceptional experience for each niche can be challenging.
In our case, we've found that by focusing on a specific niche — gift-giving — we can better tailor offerings for buyers and sellers alike, taking into account the unique aspects of the blooms and gifts industry. This approach benefits everyone involved, creating a more efficient shopping experience in a niche that is driven by an emotional aspect and various occasions throughout the year.
Tailored targeting
Niche marketplaces create a concentrated pool of sellers within a specific segment, fostering healthy competition and a wider variety of goods for customers. Unlike their horizontal counterparts, niche platforms let sellers avoid price wars and maintain their brand position within a niche (e.g., luxury bouquets vs. wholesale flowers). Effective communication of this internal segmentation through clear category labelling, filtering options, and product descriptions further benefits both sellers and buyers.
Loyal followers
By specialising in a particular niche, vertical marketplaces often attract like-minded individuals among both sellers and buyers who can share experiences, discuss products, and build strong connections with the brand. Therefore, niche platforms often develop a strong community of like-minded individuals who are passionate about the products and services offered. This can lead to increased customer loyalty, repeat business, and positive word-of-mouth marketing. To support these goals we've created the sellers community — a space for local brands to network with fellow entrepreneurs, share insights and strategies, and grow together.
When a new market player emerges, they invest significantly in promoting their chosen product category. For instance, we faced a two-year journey to establish online flower ordering in the UAE. This has had a positive ripple effect. General marketplaces and other e-commerce players have taken notice, integrating similar offerings into their platforms, which benefits the industry as a whole.
By cultivating a niche marketplace, companies not only stimulate customer demand but also foster supply — more sellers recognise the potential of entering this segment. This, in turn, contributes to the broader economic growth of the country. As more businesses are established and competition intensifies, we witness a positive impact on various fronts: more jobs, lower prices, enhanced service levels, and the introduction of innovative products and categories.
