But the internet is not only for large companies to use for sales purposes, but has allowed for many smaller companies to arise, supplying information and products to smaller markets. This shows how the internet is comprised largely of small niche markets.
This Web 2.0 pattern is referred to as Leveraging the Long tail, basically stating how the internet has allowed for smaller niche markets to grow considerably due to easier means of communication.
As niche markets where usually confined to a few shops spread out over large distances, the internet now allows buyers to access a specific shop from around the world.
One example of how the internet can give smaller markets an advantage is by looking at the DeLorean Motor Company website.
The DeLorean was a small car company that produced a very recognisable sports car, the DMC-12.
This company later crashed and went bankrupt in 1982 and ceased production of this car. Only 9,000 were ever produced.
Although this car company was short lived, its single car model rose to fame due to its feature in the Back to the Future trilogy movies. This franchise provided the car with an enormous fan base, but due to the small production units, this was a very, very small market.
In 1995, a warehouse full of assembled parts was put back into production and this website was formed.
This website allows the niche market immediate access to all things DeLorean.
Customers are able to buy spare parts or get existing cars refurbished. It also allows customers to buy new cars that are being manaufactured from old existing parts.
I think this website will have a bright future as long time fans of the movie and car are now able to purchase and keep their car running.
My first thoughts after reading 4-5 sentences and taking a quick look at the picture was "isn't that car from that movie with Michael Fox?". Then it answered my question when i continued on with the blog.
ReplyDeleteThe DeLorean Motors application is certainly a niche product where it is solely and specifically for a certain interest group and that is basically what a niche product is.
You mention that there were only 9,000 of those cars ever produced, it is a very amount number of cars made and they should be rare to find these days. I can only imagine those number will set to decline (years or decades)as technology improves and oil is limited (especially to know that car manufacturers are taking electric technology more serious).
Wow. The pure fact that someone managed to pull an "outdated" product such as this back purely as a result of the internet's capabilities (and of course to some degree their own ability to market the product) is amazing.
ReplyDeleteThanks for the post, it was very educational!
Great example and good post!
ReplyDeleteI think the DeLorean is so well known because of Back to the Future, it doesn't completely surprise me that a website has been created and a company dedicates itself to the car.
With niche markets like this all over the internet, you can pretty much buy anything you can ever imagine. I wonder how much they sold.
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