Tuesday, September 09, 2003

Herd Mentality Or Business Acumen

I pass through this lane everyday while going to my college. This lane has a string of hardware shops (about 6-7) lined next to each other.
In the same lane, one can find many fast food eateries, which are again situated next to each other.
Mumbai has Linking road, Fashion Street where one can get trendy clothes for real cheap prices. Here one can find shops selling same kind of stuff lined next to each other.
Hindi Film Industry is getting ready for one of its busiest weeks coz films worth Rupees 50 crores are releasing simultaneously.
Bangalore’s Avenue Road once had nearly 30 theatres situated next to each other. The road was famous for the number of theatres it had.
The lane next to my house is a busy street. One can find a string of general stores (about 5-6) lined up (u guessed it right) next to each other. In addition, in the same lane one can also spot 3-4 STD booths situated at the same place next to each other.

Well……..the point I am trying to make is how does business prosper when u have the same kind of shops situated next to each other. I have always wondered how business thrives in Linking road and Fashion Street. Apart from cheap stuff, I guess there’s more to it. Bangalore’s Avenue street now no longer has 30 theatres. Many of them have closed down, many of them have been shopping malls etc. this is not the first time that a string of hindi movies are ready for release simultaneously or back to back. Many a times they have always suffered losses coz each of the movies always tend to make a dent on other movies’ businesses. The audience obviously gets divided. But there have been instances when Aamir Khan’s Lagaan and Sunny Deol’s Gadar released on the same day, but both went on become major hits. But if they had postponed their releases such that neither clashed with each other’s release, mabbe they might have achieved even better success. Who knows! During one of the discussions in my class my professor just happened to mention that the main theory behind the presence of the ubiquitous shopping malls at so many places in the country is that with so many shops under one roof a consumer tends to buy soething or the other ultimately benefiting the shop owner in the end. She also related this example to the success of the Linking road and Fashion Street. But I think this method is not always fullproof. Whaddya guys think coz I am a bit confused…………..

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