Nope, the point is that you're using the term incorrectly. I can call a turd a rose, to quote the colloquial saying, but that doesn't make it smell any better. You can make up definitions all you want.
For your reference from a different source, since evidently the dictionary didn't do it for you:
"A niche market is the subset of the market on which a specific product is focusing; therefore the market niche defines the specific product features aimed at satisfying specific market needs, as well as the price range, production quality and the demographics that is intended to impact."
http://en.wikipedia.org/wiki/Niche_market
Or:
A small but profitable segment of a market suitable for focused attention by a marketer. Market niches do not exist by themselves, but are created by identifying needs or wants that are not being addressed by competitors, and by offering products that satisfy them. See also market segmentation.
http://www.businessdictionary.com/definition/market-niche.html
Or:
"A niche market is a focused, targetable portion of a market."
http://sbinfocanada.about.com/cs/marketing/g/nichemarket.htm
That would be the first 3 hits on google for "market niche."
Notice how they all state that we're dealing with a particular segment or subset of the market? And how, within the range you mention, Cold Steel sells products targeting a rather broader range of the market?
If you're going to make up a definition, at least do an effective job of making up a term that doesn't already have a standard definition.