The internet is an ideal place to plan, launch and manage niche business. And, done well, this can be achieved successfully without recourse to expensive off-line campaigns.
For example a shoe manufacturer makes shoes of all sizes, types, colours and for all occasions. His marketing opportunities before the internet depended on costly brochures, advertisements, location and reputation. Marketing to a niche market such as larger sizes didn’t bring significant returns, so instead he concentrated the majority of his production on standard products that would meet the requirements of the largest possible customer base.
But with a website, the shoe manufacturer can segment his products into an infinite number of niche markets: larger and smaller sizes, bespoke colours, shoes for walking, shoes for running, and so on. He will also probably be supplying retailers so he can add to this list high street fashion shops, work wear wholesalers, etc.
Without any more investment than the services of a good web site he can build a family of niche market pages which speak directly to his customers about their specific requirements.
Another crucial factor in what allows niche shops and suppliers do so well online, is that they have access to a global market. Perhaps there are only four people in your local town that would want to buy your specialised product. But with the whole world as your customer base, you could be reaching thousands or even millions of new customers.