Does being in a 'Market' where similar products are sold add value to the retailer or increase the intensity of competition?

The operative word is 'similar' which is very different from 'same'. A market place which offers a wider range of options to satisfy the same need among customers attracts a greater number of customers. Greater footfall obviously means greater potential for sales. A good example is the eat street

 near Sajjan Rao circle, Bangalore . Tucked behind the iconic VB Bakery, the market offers a infinite  variety of snacks. Historically the market grew out of a need for the local residents consisting of members of the arya vysya community who were the main residents of the area. This community loves vegetarian fried food and south Indian snacks and how communities have stereotypical food choices is a good subject for another post! Today a number of colleges in the vicinity and foodies from all parts of Bangalore ( and there are a very large number of them!) now frequent this short stretch of a narrow street. Business is brisk only in the evening.

After the VB Bakery came the shops targetted at the vysya community selling favourites from pakkampappu, green gram dhall chaat and  paadu. Among the early entrepreneurs was Murugan of Arya Vysya Tiffins ( pics below), the american sweet corn push cart, followed by a a large number of shops that offer every snack from gulkand butter, holige, akki roti, a number of types of idlis and dosas, fruits, icecreams.....you imagine and it is most likely there.

A market has grown from one outlet to many that similar products. While there is a competition, the market size has grown manifold. For the consumer,  Maximum choice is a wonderful thing...or is it?