Other day had to attend a get together at a hotel. On our way found that the road had almost all the brands in automobiles? From Honda, to Maruti to Ford to BMW. Now that was surprising. Competitors on the same road! So who was the best on that road or for that matter best among competition?
This experience led to the thought of competition preferring to be in the same area, it could be in electronics (there are nearly 8 electronics showroom in a less than a km area), or in fruits & Vegetables, in clothing, silver ware in other general merchandise stores and even restaurants (food street).
The aim being to create a impression of a destination for purchase of the specific products. The customers find it easy to compare the brands, offers and other criteria by just visiting a particular locality. They do not have to go various places for comparison. (This is such a blessing in the days of high traffic). This helps in easier and faster decision making.
Such a healthy competition leads to the survival of the fittest. Thereby each of the players ensures to try and remain fit. Ultimately the fitter the player the better it is for the customers. E.g. in the case of electronics, It ensures that the retail stores make available the best brands, there is a competition among the outlets to launch a product at their outlet first. The customers can also get the best pricing or the service warranty or the great accessories or maybe lucky customers can even get all. This could happen only in the presence of competition. In a food street (most of the cities have a food street) a customer can get to taste variety of cuisines. So in a sense a visit to the food street becomes a sort of a outing as well as taste variety of cuisines.
Imagine a electronic showroom was a standalone in a locality with no competition in the nearby areas. The outlet would find it difficult to get customers as well as generate sales. As before a electronic purchase there is a tendency to compare and customers might find it difficult to visit multiple locations for comparison. Similarly is the case with food. If a lone street vendor decided to do business in a locality with no street food vendors then he might not do brisk business. But if he was selling the same items in the food street he can be assured of a good amount of walk-in who could also explore his products.
Thus flocking together of the birds of the same feather is a blessing to the retail outlets as well as customers.
Any such examples where an area is known for a particular products due to the large numbers of vendors/retailers selling the product? Any product for which you wish all the vendors would come at a specific place to sell?
Please share with me