Niche involves providing services to a particular group of people within a market. For example, my market may be entrepreneurs, but my niche is services for mom entrepreneurs. As the producer of the product you must take in consideration the group that you are creating the products or services for. Concentrating on particular niche gives you many advantages.
Lack of defining a niche has caused many businesses to collapse. Business owners need to know their target market and their needs. A business is more likely to fail if it does not have a niche. You need to know who your specific niche is, the kind of problem this particular niche has and what you plan to do to help solve the problem.