What are retailers called that provide different products but aim to satisfy the same customer need?

Retailers that provide different products but aim to satisfy the same customer need are referred to as indirect competitors. This term is used to describe businesses that do not directly compete with each other in terms of the exact products offered, but still vie for the same customer base or fulfill similar needs. For instance, a clothing store and a shoe store may not sell the same types of products but both cater to customers looking to complete their outfits. Understanding indirect competition is vital for retailers as it allows them to identify and respond to broader market trends and consumer preferences that could impact their sales even from outside their direct product category.

In contrast, direct competitors are businesses that offer the same or very similar products, directly competing in the same market space. Peer retailers generally refer to those operating in the same market segment and offering comparable products. Complementary retailers sell products that complement one another, enhancing the overall customer experience for specific needs but not necessarily competing directly for the same consumer dollars.