While surfing through the different blogs posted by other students, I came across a post that caught my eye. Inside the post, it mentioned about how businesses are creating value through accessibility, which i found very interesting and quite true. I also realized he had not proved why Hong Kong’s Causeway Bay had a very expensive rent.
Business owners nowadays pay for rent, a cost that varies due to primarily one thing, location. For example, rent spaces in the city-centre are much more expensive than the ones in the country side. This is due to the amount of consumers going by the place each day as well as accessibility of the location. When an agreement is settled, business opens and consumers come in. What do they purchase? They purchase the quality, the item, as well as what Aidan mentioned in his blog post, accessibility. Consumers rarely go to another shop further away to purchase from the same store that is close to where they live; hence, they purchase accessibility. Causeway Bay in Hong Kong is the shopping central where most people go to buy luxury items such as clothing etc. With many malls and shops, most of the people come here to relax and enjoy the evening. Since it is in the middle of Hong Kong as well as flowing with consumers, Causeway Bay is forced to have very high rent prices due to these two factors.