Imagine two shops that receives 100 customer each every day. Of these hundred customers 40 always find and buy what they need in each of these two shop. Of these 40 that buy 30 come from across the road where fewer people live. Imagine that one of these shops decides to relocate across the road to the smaller population to be nearer to her customers and serve them better. Obviously because of fewer people she attracts less customers to her shop. However because of the closer relationships the customers can now request for what they want stocked. As a result not only do all the customers to her shop buy, they buy more often. This is the power of niche-marketing.