In China, shops try to open up near competitors. Most cities have an "electric bike street", where all the shops in an area are electric bike shops (or restaurants / convenience stores). Customers like choice, and hate to go to a place where they can't compare prices. That might be zoning (I can imagine Chinese authorities saying "OK, that street can sell product X), but I think it's also a long standing tradition.
Here, shops hate to be near competitors, and it's not unknown for them to lobby the local council over zoning infringements that their competitors are making. This is despite their competitors pulling in a lot of business. After all, shops will pay many times the rent to be in a mall, proximately because that's where the customers are, but ultimately because that's where the competition is.
OK, a small hamburger joint needs to worry if McDonalds sets up next door. But if another small hamburger joint sets up nearby, it will increase traffic. The "competition" isn't the guy next door. It's the guy next door, the food strip in the mall, and home-cooked food; and only the guy next door is pulling in foot-traffic to your area. But guess who most business owners will try to put out of business?
Here, shops hate to be near competitors, and it's not unknown for them to lobby the local council over zoning infringements that their competitors are making. This is despite their competitors pulling in a lot of business. After all, shops will pay many times the rent to be in a mall, proximately because that's where the customers are, but ultimately because that's where the competition is.
OK, a small hamburger joint needs to worry if McDonalds sets up next door. But if another small hamburger joint sets up nearby, it will increase traffic. The "competition" isn't the guy next door. It's the guy next door, the food strip in the mall, and home-cooked food; and only the guy next door is pulling in foot-traffic to your area. But guess who most business owners will try to put out of business?