Why do competing businesses the world over cluster together in the same place? Go to New York’s Fifth Avenue and you’ll find Saks, Abercrombie & Fitch and Gucci all vying for your attention. Head down to the waterfront in Auckland and you’ll find a line-up of restaurants complete with an eager maître d’ trying to entice you in.
Less glamorous but equally relevant, if you are looking to tile your bathroom in Wellington, you’ll head down to the ‘tile mile’ at the bottom of Ngaio Gorge where you’ll find a whole swag of tiling businesses parked right next to each other.
The reason for this is that when competing or complementary businesses band together in a cluster, whether that be Fifth Avenue, the Auckland Waterfront or even the tongue-in-cheek ‘tile mile’, everyone benefits from increased sales. The best of these clusters become brands in their own right. (more…)