I was told that following are the features of a niche market:
1. This part of the market has no competitors.
2. It sets its own price.
3. It enjoys virtual monopoly.
An example can be Rolls Royce
Is all of this correct?
Basically correct. Maybe not no competitors, but very few.
A niche market product or service is one which is out of the mainstream of that type. I wouldn’t say you could set your own price, but you’d certainly have a much higher markup than a mainstream product. Conversely, the product volumes are usually much lower also.
Rolls Royce is certainly in a niche market, but it also has to compete with a niche market competitor in the Bentley brand cars which was previously part of Rolls Royce.