Some analysts have even reported that, over the holiday season, many people have failed to shop online not only because of their fears of security or privacy but also because of their confusion. There is so much choice, information and competition on the web that everything just seems like one big blur of sameness. Niche marketing on the other hand helps to simplify people's search for the kinds of products or services you offer. By being unique or focused, you become superior in the mind. The more focused you are the more traffic and sales you will in turn create.
Research shows that the marketplace is becoming more and more fragmented.
People simply have too many choices and many of them end up feeling lost as a result. It makes no sense to promote your site or offer in front of people who are never going to be genuinely interested in it let alone qualified to buy your product or service. Therefore, before doing so you must define your perfect customer. Consequently, the next step is to go where she goes and then to take her by the hand. But in the process, you build a strong brand identity as a natural byproduct.