Niche Businesses and Large Chain Competitors

Ava Swirzinski

Entrepreneurship and Business Academy, Kempsville High School

Academy Senior Internship

Mrs. Sarah Routsis

January 15, 2021

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Introduction

Walking out of the dressing room, looking in the mirror and knowing that is the one. All

other options are eliminated, picturing walking down the aisle in this gown. Emotions are

flooded with joy and relief as friends and family smile with delight. The day one picks their

wedding dress is unlike any other and will remain an important memory forever.

Although my description may seem like an anecdote, I am far from this experience as a

high school student. However, much of my knowledge is based on TLC's "Say Yes to the Dress"

and, more recently, my internship experience at Ava Clara Couture Bridal. Ever since I was a

little girl, I have had an enthusiasm for fashion because it speaks to my creative side and allows

me to show off my personality. As a rule follower, fashion creates a space for me to experiment

and "break the rules." Additionally, as a student in the Entrepreneurship and Business Academy,

marketing and business have become passions of mine. In searching for an internship

opportunity, I wanted to pursue a placement that incorporated both business and fashion as they

provide an outlet for my critical thinking and logical side while also engaging in creative fashion.

Thus my goal to study and gain a job in the fashion merchandising industry. With this in mind,

for my academy senior capstone project, I knew I could utilize this opportunity to broaden my

understanding of the fashion industry. I reached out to various businesses surrounding fashion

and received an enthusiastic response from Ava Clara Couture Bridal. Ava Clara is a boutique

bridal salon that specializes in customizations and inclusivity. As a teenager, I thought that bridal

would not expose me to the fashion world I yearned for. However, I was completely wrong in

that assumption. My mentor and the owner Alex Fleear have taught me the ins and outs of the

bridal fashion industry.. Through supply chain management, special events, and bridal

appointments, I have gained a significant amount of experience and knowledge. From shadowing
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appointments to eventually running my own appointments, I have not only learned about

customer service but teamwork and the backend of retail. Moreover, with an interest in

marketing in relation to fashion, Ava Clara has allowed me to look into boutique stores and how

they thrive as small businesses in our predominantly chain economy.

What I Wanted to Know

Interning at Ava Clara has brought to my attention the boutique-style businesses and how

they have to compete with larger brands and chain businesses. Throughout my substantial

research and internship experience, I seek to gain insight into the competitive advantages that

small niche businesses have over larger chain competitors. In order to reveal the answer to this, it

is essential to look at more in-depth questions: What are the benefits of smaller businesses in

customer retention? How does Ava Clara differentiate themselves from their competitors? By

understanding these aspects, we can then highlight the advantages that accompany niche

businesses as opposed to well established chains or national brands..

Small businesses have to manage the market alongside companies that have corporate

backing and funding; therefore, it is imperative that they formulate an effective strategy of

customer acquisition and retention. This idea applies to all small businesses with specific

customer segments, as they do not have funds to allow customers to choose their competitors or

lose their business down the road. Ava Clara Couture Bridal is a decorated example of the "gain

and retain" aspect of customer outreach. Through my internship, I was able to evaluate

marketing aspects specific to Ava Clara. Extra complimentary services that are provided for

brides also reveal strong points of maintaining clients. Most of the information gained to reflect

small business practices come from observations and interviews throughout my industry

exposure; moreover, examples from research help to enforce these ideas. In relation to this idea,
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the term "customer retention," as well as how Ava Clara uses the bridal process for customer

maintenance, will be discussed.

In contrast, the operations of large businesses are highlighted through market research

related to Ava Clara as well as overarching trends of large businesses. Provided that Ava Clara is

a niche business, retrieving information on large businesses will come from examining the

"chain" competition, such as David's Bridal. In addition to my primary observational data,

looking at a plethora of alternative industries through research will allow the information to be

less specific and apply to general niche businesses. Answering this question will segue into

creating a well-rounded understanding of small niche businesses and their practices to maintain a

standing in the industry.

The Research Process

In order to gain knowledge on this topic, the question had to be broken down to gain full

understanding. To begin, I investigated how Ava Clara is a niche business and what they do to

set themselves apart from other bridal boutiques. This was found through my internship

experience as well as research on "niche businesses." The next piece that contributes to

answering my research question is looking at large chain businesses and the specific competition

that Ava Clara has in the Hampton Roads area. Through market research, as well as speaking to

my mentor, I was able to gather a well-rounded understanding about large chain companies.

Lastly, by conducting research and experiencing countless learning opportunities through my

internship, I addressed the topic of customer retention and Ava Clara's tactic for retaining

customers. By utilizing my internship and what I have learned and noting research, the

sub-questions were easily answered, which in turn answered the overarching question in my

research.
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Niche Businesses

In order to understand the role of small niche businesses and how they compete in the

market, we must first identify what being "niche business" actually means. Classification as a

"niche" business includes how they present themselves to the public and the market in which the

company specializes. First is niche marketing, which focuses on one particular population or

customer segment as businesses use techniques to note more specific wants and needs of

customers ("Definition of 'Niche," n.d.). By creating a specific solution, niche marketing allows

for a unique value that bigger businesses do not cover ("Definition of 'Niche," n.d.). This does

not suggest a smaller market, but a more distinct and niche audience; a niche market allows for

better success in the specific area of expertise ("Definition of 'Niche," n.d.). Companies market

to a specialized sector, or "niche market." A niche market is a smaller section of a bigger and

more encompassing market that includes different values, which allows for more specific

outreach to a certain customer base (Ward, 2020). This allows them to fill any gaps that more

mainstream businesses do not provide and allow for companies to gain customer loyalty in a

larger business sector (Ward, 2020). Especially in industries where there are significant

competitors with a grasp of the market, finding a niche helps businesses achieve success; similar

to Ava Clara.

Background of Ava Clara Couture Bridal

In the bridal industry, finding a niche to specialize in and creating your unique value

proposition is key to standing out in the highly saturated market. Considering that the US has

upwards of 6,000 bridal stores as well as a market size of $2 billion, differentiation is crucial

(​Bridal Stores,​ 2020). As an intern at Ava Clara Couture Bridal, I have fully immersed myself in
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the bridal industry and observe how they create a unique experience for their brides in order to

stand out.

Alex Fleear, the owner of Ava Clara, decided to create her own bridal salon after working

for another bridal boutique and realizing that "the area lacked couture and customizable gowns at

an affordable price" (A. Fleear, personal communication, October 1, 2020). With this in mind,

Alex was passionate about creating what is known as "The Ava Clara Difference." They focus on

one-on-one appointments, customizable dresses, and providing services throughout the entire

bridal process ("The Ava Clara," n.d.). Unlike more prominent bridal companies, Ava Clara can

hone in on each client and provide impeccable customer service as well as work with each bride

for custom gowns. Through my observations, I can attest to the level of professionalism and

customer service as I often shadow appointments. Each bridal associate takes time to meet every

bride and get to know them in order to suggest the best dresses for them. Moreover, Ms. Fleear

provides discounts on the dresses she carries to meet the budgets of customers as needed. The

creation of a family environment and genuine care for each bride is an aspect of the "niche" that

Ava Clara thrives on. Additionally, Ms. Fleear values being able to provide gowns that every

"body" can fit and match their proportions (A. Fleear, personal communication, October 1,

2020). Although a smaller, boutique bridal salon, Ava Clara focuses on the details and

personalized treatment. This way, they have a better competitive advantage against the large

chain competitors that have more stock and more extensive facilities.

Large Chain Competitors

In addition to smaller niche businesses, large chain businesses contribute to the makeup

of the market. When two or more stores are operated by the same leadership and sell the same

goods, they are considered a chain store ("Chain Store," n.d.). Not to be confused with a
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franchise, a chain store is different in that they do not maintain individual ownership, whereas

franchises do ("Chain Store," n.d.). Therefore, they must comply with upper management and

have little to no community interaction. Being that a chain business also includes a central

leadership group, they bear financial losses and gains for the whole company rather than

individual stores ("Chain Store," n.d.). Moreover, since large chains have a sound foundation and

usually have a monetary backing, they are more apt to succeed. Some of the biggest chain stores

include Kroger, Costco, and Target (Farfan, 2019). These big names dominate the market and are

household names amongst a majority of consumers, allowing them to continue to grow and

expand. Not to mention, large chains are apparent in nearly every specific market, which makes

it significantly harder for new businesses to break into the industry and make a profit.

Ava Clara's Large Chain Competitors

Within the large market, there are many small bridal stores, such as Ava Clara Couture

Bridal in Virginia Beach, which strive to break through the saturated world of bridal. Not only is

the mere number of bridal stores a challenge, but also the presence of large chain bridal retailers.

As mentioned previously, big chains have many advantages against smaller businesses, and

bridal is no exception. One of Ava Clara's largest chain competitors is David's Bridal. Being the

largest bridal retailer in the US, David's Bridal has 300 locations across the nation (​The David's,​

n.d.). Additionally, stores continue to open as they grow as they continue to contribute to

"revolutionizing" bridal in a retail aspect (​The David's,​ n.d.). David's bridal is very established,

as it has been around for a long time and has a plethora of stores across the US. They provide a

number of dresses at different price ranges and are highly known across many age ranges, which

helps contribute to their growth. They even have over 120 styles in all of their retail stores as

well as a variety of sizes, 0-30 (D'Agosta, n.d.). This allows for easy access and many options for
NICHE BUSINESSES AND LARGE CHAIN COMPETITORS ​7

brides. In addition to David's Bridal, the trendy company Anthropologie has a bridal company

named BHLDN, which also serves as a large chain competitor for Ava Clara (​About Us​, n.d.). As

an extension of Anthropology, BHLDN has a large corporate backing. Additionally, they provide

an online shopping experience in addition to brick and mortar retail stores, which allows

customers to purchase dresses online (T. Bashara, personal communication, December 1, 2020).

They carry many of the same brands as Ava Clara has, as they cater to more boho brides (T.

Bashara, personal communication, December 1, 2020). Many brides will come into Ava Clara

and note that they found a dress at BHLDN that they liked or that they have seen some of our

gowns at BHLDN (T. Bashara, personal communication, December 1, 2020). As established

chain companies, David's Bridal and BHLDN serve as big competition to Ava Clara, primarily

due to their availability in the market.

Customer Retention

Customer retention is very much how it sounds. It is retaining customers and ensuring

that they continue to be your client. A company with efficient customer retention tactics is able

to keep its customers from transitioning to a competitor (Olson, 2020). For measurement

purposes, customer retention reveals the companies' ability to keep customers satisfied with both

their selling and customer service (Olson, 2020). Not only is it providing a good experience

during the purchase, but throughout the entire process and after they have left. Customer

retention has many different aspects that influence it (Olson, 2020). From interactions with

employees to how the company reveals its values (Olson, 2020). Although similar to customer

acquisition, retaining customers focuses on those who have previously purchased from the

company (Olson, 2020). A large portion of customer retention is the relationships made with

customers (Olson, 2020). The connection you create with people leads to them feeling more
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inclined to come back and even spread your business to their peers. A memorable experience

creates a precedent for future visits, which in turn leads to retention of customers. For any

company, focusing on customer retention helps to contribute to longevity in business.

Benefits of Smaller Businesses in Customer Retention

In one study, prospective shoppers were to watch one of three ads that would focus on

either small competitors, zero competition, or the "stores large competitors" (Paharia et al., Fall

2014). Participants were then told of certain repercussions of the competitive environment

(Paharia et al., Fall 2014). They were then given a $5 coupon to spend in order to analyze how

the ad impacted them (Paharia et al., Fall 2014). Results found that consumer support increases

for smaller brands when larger brands threaten them (Paharia et al., Fall 2014). A small business

often gains customers' emotional care as they are community-based, and most want to maintain

the unique aspect of small businesses rather than chains. Small businesses can also have more

flexibility with rules and actions as they are not tied down to a corporate company. This can

appeal to customers more than a chain since prices can be bargained, and additional, and more

personalized experiences can be created. However, for every individual, different aspects of

small businesses could contribute to their continuous return to the establishment. Additionally,

each category of business can provide specific things that aid in their customer retention.

Customer Retention Throughout Ava Clara

As I have gotten the opportunity to intern at Ava Clara Couture Bridal, the aspects of

customer retention in the bridal industry have become apparent to me. Specifically,

understanding how Ava Clara has stood out within large chain businesses. As mentioned

previously, Ava Clara focuses a lot on customer service and ensures that every bride feels special

throughout their entire appointment. The focus on each bride has become apparent to me as I
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often shadow appointments and observe how the associates make an effort to get to know the

bride and give them their undivided attention. Additionally, the owner Alex Fleear has made it a

point in special cases to reduce the price of gowns to fit some of the brides' budgets; she even

encourages the associates to do the same. Focusing on the people rather than the business all the

time conveys the kindness that Ava Clara exhibits. Although the revenue is essential, giving

brides their “princess moment” that fits within their budget is something that makes Ava Clara

stand out and is what gives them such a great reputation. Additionally, when a bride purchases a

gown with Ava Clara, they get a discount on bridesmaids' gowns, which encourages them to

continue doing business with Ava Clara, thus contributing to the retention of customers. Not only

does Ava Clara utilize monetary benefits for customer retention, but also additional services that

are complimentary for brides. Once dresses come in for a bride, we steam them out before pick

up and provide a free steaming before the wedding. Steaming the gown makes it look much nicer

for the customer while also reflecting the company's values. All of the little details significantly

contribute to the overall aesthetic of the store as well as bring in customers. After they have a

great experience, word is passed around, which continues customer outreach.

Analysis

Although my overarching research question looked at a broad topic that was not specific

to the bridal industry, being able to observe a small niche business allowed me to make

correlations to a larger context. Most of my internship-specific research was qualitative data

conducted through interviews and observations during my time at Ava Clara. However, a

majority of the information can be generalized to all niche businesses.

Through my internship, I learned that at the end of the day, the people and the

relationships that are created will often contribute greatly to the brand's image and getting people
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to remain Ava Clara customers. People, especially brides, find value in kindness and genuine

connections. Although buying a wedding dress is much more saturated with emotion, in any

small business, creating a connection with customers may be one of the only things

differentiating you from larger businesses. Specifically, Ava Clara hones in on the little things

that can be done to gain customers over larger businesses. Upon looking into their biggest

competitors, most of the dresses are the same throughout, where larger stores have a larger

selection; therefore, the smaller additions and services that smaller stores like Ava Clara provide

sets them apart.

As previously stated, my question looked at niche businesses competing amongst larger

chain competitors, the bridal specific services, discounts, and much more personal relationships

(since finding the perfect wedding dress requires a good understanding of the bride), can be

looked at from the perspective of going the extra mile not just to sell, but create an experience.

For a bridal store, a single purchase is most common, and having referrals to others is essential;

whereas, other niche businesses look more for a returning customer known as "customer

retention."

In order to improve my research, there are a few things that I could have done differently.

In terms of data collection, some quantitative data may have helped illuminate some of the

customer retention tactics and supported others. Additionally, I would have reached out to some

of the larger chains to try and gain insight into their customer retention tactics for comparison.

Conclusion

Through my research process, I gained an understanding of the multitude of aspects that

go into gaining and retaining customers, but I also learned about the retail business in general

and customer service. Exposure to the daily activities of Ava Clara has allowed me to identify
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what keeps small businesses running and how all parts of the business come together to lead to

success. Now that I have expanded my knowledge, I can use what I have learned in the

future—applying my understanding to future jobs, as I will value relationships, first impressions,

and customer service. The opportunity to have an internship and explore a specific aspect of the

business has benefited me and will continue to benefit me as I transition into college and my

career.
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Works Cited

About Us. (n.d.). BHLDN. Retrieved December 2, 2020, from https://www.bhldn.com/

pages/about-us

The Ava Clara Difference. (n.d.). https://www.avaclarabridal.com/

the-ava-clara-difference-virginia-beach-va/

Bashara, T. (2020, December 1). [Personal interview by the author].

BHLDN. (n.d.). BHLDN. Retrieved December 2, 2020, from https://www.bhldn.com/

Bridal Stores Industry in the US - Market Research Report. (2020, April 9).

IBISWorld. Retrieved November 4, 2020, from https://www.ibisworld.com/

united-states/market-research-reports/bridal-stores-industry/

Chain Store. (n.d.). Encyclopaedia Britannica Online. https://www.britannica.com/

topic/chain-store

D'Agosta, H. (n.d.). FAQs About Appointments. Davids Bridal.

https://www.davidsbridal.com/Content_StyleandFashionGuide_appointmentfaq

The David's Difference. (n.d.). David's Bridal. Retrieved November 18, 2020,

from https://www.davidsbridal.com/

Definition of 'Niche Marketing'. (n.d.). The Economic Times.

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Farfan, B. (2019, June 25). The Worlds Biggest Retail Chains. The Balance Small

Business. Retrieved November 17, 2020, from https://www.thebalancesmb.com/

largest-us-retailers-4045123
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Fleear, A. (2020, October 1). [E-mail interview by the author].

Olson, S. (2020, March 20). Customer retention basics every business leader

should know. Zendesk. https://www.zendesk.com/blog/customer-retention/

Paharia, N., Keinan, A., & Avery, J. (Fall 2014). The Upside to Large

Competitors. MIT Sloan Management Review, 56(1), 10-11.

Ward, S. (2020, August 6). What is a Niche Market? The Balance Small Business.

Retrieved October 23, 2020, from https://www.thebalancesmb.com/

niche-market-definition-for-business-2947188