The magic of agglomeration advantage


Competition stimulates business is an old saying in economics. I had a D- (4- in Germany) in my Abitur in geography. But for some reason, I have not forgotten one thing: The agglomeration advantage. In retail, an agglomeration advantage is an increase in sales through spatial proximity to stores with a similar assortment or a similarly pursued pricing strategy (source: onpulson.com). A street full of restaurants and snack bars attracts the hungry. Even though each vendor is in competition, they all benefit equally.

Can it be a coincidence that some of mankind’s most significant artists lived in the same place in the same era? Names like Leonardo da Vinci, Michelangelo, or Botticelli ring bells even to the art philistine. The great masters learned with and from each other. And they were also in competition with each other. For example, Da Vinci found his personal and professional rival in the young Michelangelo. Both of them were commissioned in the early 1500s to each decorate a wall for the Florence’s Council Hall in the Palazzo della Signora with their art. The mere presence of the other will have affected and motivated them somehow. They will have benefited from it. How exciting it must have been to watch these two ambitious geniuses at work in direct comparison. 

Our environment affects us, and we affect our environment. Depending on where we move or who we meet, the place and the people influence our path. For my studies in communication design, I moved to Dusseldorf, the fashion city par excellence. As a graphic design student with a passion for illustration, it’s no surprise that I ended up creating t-shirt graphics for fashion brands like Esprit while studying.