maconda's extensive experience in textiles & leather goods, retail and especially niche markets was put to good use over the last few months in various strategy projects and transactions for diverse clients. Most recently it involved a transaction in Lower Bavaria.
Spieth & Wensky, headquartered in Obernzell near Passau, is a leading full-range provider of traditional attire. Its core business centers on the collection development, production and marketing of traditional attire and shoes – primarily for a younger target group. The products are mainly sold via specialist retailers for traditional attire, which is the most important distribution channel.
The maconda team supported Odewald KMU with the commercial due diligence. Within a short time, we evaluated the specific niche market for traditional attire including Spieth & Wensky's position in the competitive environment. Accurately assessing the key market and demand drivers as well as the retail structure for traditional attire in the core region posed a particular challenge as there was no reliable market data available. And yet, maconda managed to obtain the needed information. This was achieved in part with help from our numerous mandates also in such niche markets with meager information available. But for the most part, the data was obtained from more than 90 exploratory and structured market interviews with specialist retailers, manufacturers, related associations and clubs as well as additional experts. Our research also included over 20 visits to traditional attire shops and traditional attire departments at clothing outlets.
New niches are constantly being created thanks to the development of new trends, the increasing specialization of many industries and technological progress. Some disappear just as quickly as they arise, while others thrive for decades or develop into mass markets. Defending these usually very attractive niches against potential new competitors and achieving further growth despite a relatively small market size compared to mass markets represent the biggest challenges for a niche player. Niche providers have to be especially careful to ensure that their niche does not suddenly increase in size so as to attract the attention of major, financially powerful competitors.
Among other things, sustainable success in these markets requires an exact knowledge and fulfillment of customer wishes as these niches only exist thanks to their constant demand. This includes the development and constant refinement of a suitable product range, correct pricing, for instance using modern methods such as conjoint measurement, and targeted, often selective, distribution. This generally allows niche players to stay one step ahead of their few existing competitors and any future entrants to the market.
Further information on this topic can be found in our current industry focus newsletter "Niche Markets – Defending and Sustainable Growth as Guiding Principles". Request yours today via e-mail. maconda has recently supported clients in the following niche markets: river cruises, specialized market research for plant health and agricultural equipment, online retail for wines, temp work with a focus on IT staff, software for specific retail companies, foreign manufactured and favorably priced dental prostheses and out-patient ventilation care. Over the last few years, we have accrued a number of clients in niche markets.
It goes without saying that we would be more than happy to assist you as an experienced and reliable partner for developing strategies for the long-term successful development of niche markets. We also offer commercial due diligence services (also for vendors), assistance in value enhancement, segment development and foreign expansion projects as well as in strategic and operative restructurings.
Topics that our team is currently working on in various competence centers include consumer goods, food, packaging machines, luxury goods, diverse e-commerce concepts and a few others. Please get in touch should you require our expertise. We look forward to hearing from you!
We support our clients in increasing sales, profit and company value as well as commercial transaction services. These include comprehensive target screenings, systematic preparations for company sales (exit readiness), commercial due diligence assessments (also for sellers) and post-merger integrations. Our main industries of expertise are consumer goods, foods, retail, services (health, leisure, media, etc.), business process outsourcing (customer service, temporary work, facility management, etc.) and textiles. We also support select technical industrial goods and mechanical engineering projects with a view to our core end markets (such as food processing machines or packaging machines). Our multinational team of consultants is optimally positioned, completely covering the key regions of Western Europe, the CCE countries and BRIC countries – in most cases with native speakers.