A new book suggests that brands should offer bespoke services to build a loyal customer base

In 2007, a small brand called Oatly was struggling to break through. The Swedish company had developed an oat-based milk alternative, but supermarkets weren’t interested. Almond milk and soy milk dominated the shelves, and oat milk felt like an afterthought. So instead of chasing the mass market, Oatly made a bold decision: it would focus on a single niche – baristas.

Cafés had a problem. Most plant-based milks didn’t foam properly, making it difficult to create the silky micro-foam needed for lattes and cappuccinos. Oatly’s research team tweaked their formula, creating a milk alternative that steamed just like dairy. Then, they went door to door, convincing independent coffee shops to try it.

The bet worked. Baristas loved it. Coffee enthusiasts took notice. Oatly became a cult favourite, and by the time it hit supermarket shelves, it wasn’t just another plant milk – it was the oat milk that cafés used. Today, Oatly is a billion-dollar brand, but it did not start with the masses. It started with a niche that needed it most.

This is the paradox of niche products. They are built for the few, but when done right, they resonate far beyond their intended audience. Tesla didn’t start with affordable electric cars – it started with a high-performance sports car for enthusiasts. Crocs were originally designed for boaters, but they became a fashion statement. The best niche products don’t just serve a small market – they create loyalty so intense that their influence spreads.

This is about understanding that process. There are six product strategies for niche businesses introduced here, and many times, niche businesses may use more than one at a time.

1. Bespoke and mass customisation

2. Scarcity- and exclusivity-driven positioning

3. Luxury and premiumisation

4. Craftsmanship- and heritage-driven branding

5. Performance- and utility-driven specialisation

6. Ethical and sustainability-driven positioning

In an era of mass production and algorithmic recommendations, there’s something profoundly special about knowing that a product was made just for you. Not just selected from a menu of pre-existing options, but crafted, designed and tailored to your exact needs, preferences and quirks. This is the promise of bespoke products – a world where every detail is shaped around the individual. It’s not just about exclusivity; it’s about personal relevance. And in the world of niche businesses, this is one of the most powerful ways to build deep, lasting customer loyalty.

Luxury has always been synonymous with customisation. Think of a Savile Row suit, where master tailors meticulously measure, cut and stitch every inch of fabric to match the wearer’s posture, proportions and style. It’s not just about clothing; it’s about identity. The same logic applies to bespoke jewellery, handcrafted leather shoes and personalised fragrances. But today, the idea of tailoring products to individual preferences is no longer limited to the ultra-wealthy. Advances in technology and manufacturing have made mass customisation possible, allowing brands to offer uniquely personal products at scale.

Consider SkinKraft, India’s first AI-driven personalised skincare brand. Instead of customers picking a generic product off the shelf, SkinKraft asks them to take a detailed skin assessment. The company then formulates a routine specifically for their skin type – dry, oily, combination, acne-prone, sensitive – factoring in everything from climate conditions to lifestyle choices.

It’s not just another skincare brand; it’s a relationship, one that feels like having a dermatologist in your pocket.

Personalisation has also disrupted footwear. Nike By You, formerly NikeID, allows customers to tweak everything from material and colour to the laces and sole pattern of their shoes. The underlying product remains the same, but by giving people control over the final look, Nike transforms a commodity into something deeply personal. In India, Lego-like modular shoe brands have begun to emerge, offering urban customers the ability to swap out parts of their sneakers based on mood, function or even weather conditions.

Then there’s the world of automobiles. Royal Enfield, the legendary Indian motorcycle brand, has introduced customisation options that allow riders to modify their bikes straight from the factory. Everything from the handlebars to the seat finish to the colour scheme can be adjusted, giving customers a sense of ownership that goes far beyond a standard showroom purchase. Enthusiasts don’t just ride a Royal Enfield – they design their own.

Where bespoke and mass customisation differ is in their approach to scale. Bespoke is deeply personal, time-intensive and high-touch – designed for those who value craftsmanship and exclusivity above all else. It requires a deep understanding of customer preferences, often demanding a more consultative sales approach. It can be harder to scale, as customisation inherently adds complexity to manufacturing and fulfilment.

Mass customisation, on the other hand, is about offering personal touches within a controlled framework. It operates within predefined limits – modular selections, preset templates or AI-driven recommendations – but still allows customers to feel like they’re part of the creation process. It delivers uniqueness at scale, making it a powerful tool for niche businesses that want to differentiate without becoming operationally unmanageable.

Both models share a common advantage: they create a far stronger emotional connection between customer and brand. When a product is made specifically for you – even within a defined structure – it stops being just another purchase. It becomes a statement, a reflection of who you are. And this, in turn, makes customers far less price-sensitive. If a mass-market item is too expensive, a customer might look for a cheaper alternative. But if something is crafted to their exact needs, switching costs become high – not just financially, but psychologically. That’s why businesses built on hyper-personalisation tend to enjoy higher margins and stronger customer retention.

Yet, when executed well, bespoke and mass customisation create more than just revenue; they create relationships. They move beyond transactions and into the realm of trust, where customers see the brand not as a business, but as a partner in their self-expression. In a world increasingly dominated by mass production and automated recommendations, the brands that make people feel truly seen will always have a place.

Because at the end of the day, what’s more niche than something made just for you?

Excerpted with permission from The Niche Code: Building Big Businesses in Small Markets, Rajeev Roy, Pan Macmillan India.