Other Experts Weigh In

ON NICHE:
Expert: Anita Campbell
Site: smallbiztrends.com
Twitter: @smallbiztrends
As quoted on: business.com answers
A niche product is something designed to appeal to specialized interests -- not to everyone -- or with a narrow focus. Here are 3 examples, compared with a mainstream or wide-appeal version:

Mainstream: Grocery store
Niche: Ethnic grocery store

Mainstream: Fitness center
Niche: Gold's Gym (for bodybuilders)

Mainstream: JCPenney department store
Niche: Women's upscale lingerie boutique

from http://answers.business.com/Give-3-examples-niche-products-q9538.aspx