Gap in the market

A gap in the market is a customer need or want that is not currently being met. Spotting a gap is one way that changes in what consumers want can lead to a new business idea, because the demand is there but existing products or services do not satisfy it.

Businesses often look for gaps by noticing complaints, tasks customers have to work around, or groups of customers whose needs are overlooked. A gap can be about a feature, a lower price, a more convenient way to buy, or a product designed for a particular group. The important point is that customers want something, and the current choice does not fully give it to them.

Turning a gap into a business idea

Once a gap is identified, a business can design a product or service to fill it. This gives the business a clear reason to exist: it is solving a problem for customers rather than copying what is already on sale. For example, a student notices that classmates want a slim phone case that also holds a bus pass and a house key. Shops sell plain slim cases with no storage, or bulky wallet cases that are too thick. The gap is a slim case with a small secure pocket. The student designs one, and the gap has turned into a possible business idea.

A gap can exist even when a market is busy. It is the unmet part of customer demand, not simply the absence of competitors.