There are important considerations to make when installing a niche on an exterior wall. First of all, there is not a good way to fasten wall board to the backside of the niche since it is usually stucco or siding that cannot be penetrated by fasteners. Secondly, in order to make space for the recessed niche, insulation will need to be removed. This can lead to problems especially in cold climates. Lastly, cutting or removing studs in a load bearing exterior wall requires a header with proper support for the roof load.
In this video I show how to make a custom shampoo niche for tile using 1/2" Hydro Ban Board and custom cuts to minimize joints.
To see the video on Lighted LED Niche:    • How to Install LED Lights In Shower N...  
To see the video on Hydro Ban Board vs. Kerdi Board:    • Schluter Kerdi-Board vs. Laticrete Hy...  
To see the video on framing the niche on exterior wall:    • Cutting Down Floor Joists for Curbles...  

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