A Horizontal Market

There was interesting article on the 123-reg blog about Chris Armstrong, editor-in-chief of the renowned Wired magazine about how the market is shifting from the mainstream, which commands much of the trends, to those at the tail end of commerce – those who have captured a “niche.” – most of which is a product of the internet.

“The internet has enabled lots of businesses and business models to go digital. And one of the economic advantages of digital is that the marginal costs of manufacturing and distribution are zero, or close to it. This means that you can now experiment with giving away one thing to sell something else.

“It’s no surprise that virtually all businesses on the internet are based on ‘free’ in one way or another.

As someone who looks into the specifics of the retail industry, I’d say the trend nowadays is still pretty much determined by the mainstream. As far as a shift of the market is concerned, I’d say there has been a considerable shift from buying in the mall to buying online because of the benefits of not having to go out and spending for gas. But we still cannot rightfully say that the power is soon gonna be dictated by the niche markets.

I will agree with marginal costs because the supply and demand economy certainly makes niche markets a more cheaper source of any product. If I were to sell a shirt I designed for 20 bucks in a store, I could probably sell the same thing online for more than half the price off. Chris Armstrong mentioned manufacturing and distribution, I’d just go for rent and cost of utilities, it still makes a big difference.

Needless to say the beauty of the “rise” of niche markets is that there is no a more widespread economy than ever before – a horizontal market, as we say, compared to the vertical triangle we have for so long viewed it.

Google certainly paved the way for the rise of internet businesses and marketers and continues to rest on them to make their company even stronger. There has been several online advantages of having a website and a blog and some,  I must say, are making a good living out of it.

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