http://www.newstatesman.com/books/2011/03/niche-market-gap-idea-beasts
Niche: Why the Market No Longer Favours the Mainstream
I once tried to buy a shirt at Abercrombie & Fitch. It was clear the staff did not want to sell me anything. I could handle the loud music, but their dismay at having to deal with anybody more than a decade or so away from bouncy castles finished me off and so I left.
Leaving all that aside, there was no intrinsic reason why I should not buy an A&F shirt. The styles were similar to those of many other shops, from Ralph Lauren at one end of the market to Gap at the other. Oldies wear such things as often as teenagers. The only difference was that the clothes were more crumpled, more expensive and more heavily branded. But the ageism of the staff and the mood of the store - dark, noisy, faintly threatening - sent the signal that these versions of ordinary clothes were specifically intended for the young.
A&F's business is not clothes, it is niche marketing. This is an idea that has been around for some time. The old assumption that advertising and marketing should aim for sales volume has been superseded by the idea that they should aim for specific sectors. Any loss of volume should be offset by a widening of profit margins; make people feel special and they will be willing to pay more.
The internet ensured that niche marketing became the orthodoxy. Costs are lower online, and tracking consumers in order to spot trends and cultivate loyalty is easier. The approach was crystallised in the idea of the long tail - the total market in niche items is as valuable as or more valuable than the total of mass-market items. This may always have been potentially true, but the internet made it exploitable.