Copycat Businesses

[honoluludave]

Was wondering if anybody knows why, when someone comes up with a good idea for a business then everybody wants to copy this business? I live in a medium size issan town. Two years ago someone opened up a coffee shop. We now have 11 coffee shops. With that many coffee shops how can anyone be making any money? I still only go to the orignal shop because of its location and convience. I saw the same thing happening when I lived in Koh Samui.

[Jingthing]

Yes it is definitely a Thai trait, amazing to behold.

I guess they figure a smaller share of something they're sure some people will spend money for is better than taking a risk of starting a business that there is no evidence people will spend at. That reminds me. Got to get moving on opening my new shop called Just Spatulas!

Edited May 13, 2012 by Jingthing

[bangkokrick]

Even worse that that in the shopping malls. They have the entire floor selling the same product, but this is not just a Thai thing works the same across Asia.

[farang000999]

^^ not really the same. it makes sense to put all the furniture or cell phones on one floor. then when someone wants to go cell phone shopping they go to this area. this is common the world over. of course, in the USA these days there is not much small business, as the giants are just too efficient for them to survive. you have these giant companies operating on 5% margins from wholesale to retail = good bye mom + pop.

but in thailand, yes, it seems many just want to copycat small business often opening up just across the street. probably not the best business model.

[slapout]

How much orginal thinking are the students allowed during their growing up years? This may be the biggest reason behind the copycat mentality.

I see it in CM in internet game rooms, coffee shops noodle shops, resturants, etc. Its almost like they hate to see someone make a go of some new/unique idea, so they will build 10 exact copies around it, just to undermine the orginal business.

[BookMan]

Yes it is definitely a Thai trait, amazing to behold.

I guess they figure a smaller share of something they're sure some people will spend money for is better than taking a risk of starting a business that there is no evidence people will spend at. That reminds me. Got to get moving on opening my new shop called Just Spatulas!

[BookMan]

In the specific example of the coffee shop. How many are financed by the foreign/ex pat boyfriend?

[BigJohnnyBKK]

Economics 101 - in a perfect market competition will cause profits will reach zero.

There have also been many studies that show it's in the interest of certainly the consumer but also the industry to have concentration of similar vendors together.

I agree that sometimes it's taken to an extreme here.

Are the sliced-fruit vendors in Bankok centrally controlled? I rarely see any variety in their offerings. . .

[Shot]

Yes it is definitely a Thai trait, amazing to behold.

I guess they figure a smaller share of something they're sure some people will spend money for is better than taking a risk of starting a business that there is no evidence people will spend at. That reminds me. Got to get moving on opening my new shop called Just Spatulas!

Please don't put next to my shop.

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[Jingthing]

Drats! It's really true. There's nothing new in the world.

[Travel2003]

Just like Beer bars, or Pool bars?

;-)

[h90]

I hope you drive a Mercedes, because all other car manufacturer are just copycats

[Heng]

I think it's also called competition in a free market.

I wouldn't mind a monopoly on any number of our businesses but don't have the clout.

[honoluludave]

In the specific example of the coffee shop. How many are financed by the foreign/ex pat boyfriend?

It does not look like any of the shops are being financed by farang/expat boyfriends. And there is nothing wrong with a little competition. But the whole reason you go into business is to make a profit. After so many shops have been open up,why start up the same business as everybody else?

[zzaa09]

Even worse that that in the shopping malls. They have the entire floor selling the same product, but this is not just a Thai thing works the same across Asia.

You know how that is....one can never have enough noodle shops in the measured space.

They may seem to appear redundant - but actually, one is quite different from the next.

[wana]

how about MBK ,400 mobile shops crammed next door to each other on the same floor ......

does it make it easier to harder to choose a phone ?

[bangkokrick]

how about MBK ,400 mobile shops crammed next door to each other on the same floor ......

does it make it easier to harder to choose a phone ?

I just never know which one to choose, so go for the nearest first.

[bangkokrick]

My Thai sister in law opened a Thai whiskey bar outside her house. just a bar selling the strong multi coloured Thai whiskey and she was doing very well by local standards. Within a week...............

[VocalNeal]

I hope you drive a Mercedes, because all other car manufacturer are just copycats

What and they don't ? All manufacturers buy examples of the competition's products and examine then in their engineering dept. they would be silly if they dd not.

[arthurwait]

Someone came up with an idea as original and unique as a coffee shop, when they are in fashion all over Thailand and in every Thai lifestyle magazine and someone copied it ?

[phuturatica]

It's a very common thing in Asia I think. My boyfriend opened his bar on a little street where there were no bars and he was doing very well. Now one year later there are NINE bars on that little street and people aren't making as much money. Profits have slumped almost 50% - Kinda annoying.

[arthurwait]

In the specific example of the coffee shop. How many are financed by the foreign/ex pat boyfriend?

It does not look like any of the shops are being financed by farang/expat boyfriends. And there is nothing wrong with a little competition. But the whole reason you go into business is to make a profit. After so many shops have been open up,why start up the same business as everybody else?

Probably for the same reason you don't see them advertised or anything unique in them. Complete laziness and lack of effort of thought by a middle class and up kid whose real living costs are being funded by the parents money.

[Ulysses G.]

Yes it is definitely a Thai trait, amazing to behold.

It is not just a Thai trait. There are plenty of Western copycat busineses in Thailand

[h90]

I hope you drive a Mercedes, because all other car manufacturer are just copycats

What and they don't ? All manufacturers buy examples of the competition's products and examine then in their engineering dept. they would be silly if they dd not.

And even before they had a an engineering department, someone decided to copy that thing with four wheels and a gasoline engine, which seems to be better than horses

[TheWalkingMan]

I asked a Thai female about this and she basically said that when some Thais see more and more of the same business, they think it is a good idea to open one too.

[Jingthing]

Yes it is definitely a Thai trait, amazing to behold.

It is not just a Thai trait. There are plenty of Western copycat busineses in Thailand

I agree. However, honestly, Thailand is famous as a hub of COPYING most everything.

[apetley]

If you come to Kanchanaburi you'll sometimes find it difficult to see the river there are that many floating restaurants and disco rafts.

Whoever had the first one must have been on a nice little earner until hundreds of others noticed.

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[xthAi76s]

Even worse that that in the shopping malls. They have the entire floor selling the same product, but this is not just a Thai thing works the same across Asia.

And same in non-Asian countries where Asian communities set up. Ever notice in America that most every chinese food menu is exactly the same. They are, by and large, not inventive people. Of course, neither were the Japanese until recently.

[Pseudolus]

Love this topic and it is something that totally bemuses me.

1) mobile shops / computer shops. Invariably all the same products at the same price. How do people chose which one to go to and how do they make money?

2) Japanese Restaurants (Korean included) - virtually every Mall restaurant is one of these two categories.

3) Cheap Clothes shops and not just Pratimum; all the same, same price,

I kind of get it with somtam shops etc because they all have different tastes. But when the products literally are all the same, I am just astounded. One assumes that there is as mentioned before an original idea, and then one original copycat. Profits halved. They 2 more, maybe forming a little hub so more customers = same profits for all? Then another 94 open to join the party and only there really to pay the rents.

[phl]

Have to keep in mind that in many cases all the same/similar stores in he same area are owned by the same person.

In MBK there are 5 glasses shops(optometrist) across all the levels, and all owned by the same person.

Funny though all have different prices for the same products and different service.

Basically if you do not buy from first one, there is more chance you will buy from one of other 4-5