Greetings. I'm seeking to source ideas from the wisdom of the crowd. Following a Peter Lynch approach, I've been exploring niche or premium/luxury industries with 1-2 dominant players due to industry consolidation and brand loyalty. The fewer competitors, the better. Let me provide some examples:
- Nvidia (Prior to AI/Crypto boom): Before entering the spotlight, Nvidia was in a niche industry (GPUs for PC gaming) with little competition and selling products that could be considered in an enthusiast/premium-tier.
- Garmin (GRMN): Garmin holds a robust position in the niche sport watches segment, boasting around 40% market share (but facing fierce competition at the macro level). They offer premium products and enjoy significant brand loyalty.
- Shimano (7309): I think in categories beyond entry-level; all the bicycle manufacturers/designers use Shimano and SRAM parts. Recently started in the hobby but I have the impression that having Shimano component could make-or-break a sale.
Other (not validated) ideas: OLED (as OLED technology it´s getting mainstream), CUERVO (Tequila industry), perhaps Herman Miller and Steelcase in the premium office chair segment?, Dolby (audio technology) and potentially Sonos in the future. Games Workshop (GAW, one of the best stocks in the last decade) in board games.
I'd love to hear from you. What other industries and players fit a similar profile?
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