When Ulugh Beg Madrasa was built in 1420, it soon became one of the educational centers of Central Asia, attracting astronomers, mathematicians and scholars from all over the Islamic world. Today it is one of the main tourist attractions in Samarkand. But maybe it’s due to this spirit of being a former educational institution, that the madrasa hosted in May 2019 the ICTP summer school on advances in condensed matter physics, which I had the pleasure to attend.
While the morning and afternoon were filled by physics lectures, during lunch break we had plenty of time to stroll through the madrasa, enjoying vistas from one of the minarets, admiring the beautiful ornaments — and passing by an innumerable amount of tourist shops on the go.
These tourist shops all basically looked the same. They all sold more or less the same tourist stuff, including shiny fridge magnets, wooden business card holders and scarves of all different colors (surprisingly haven’t found any postcards). And when you stopped by, the owner would tell you the same story in broken English, that their magnets were the real ones and only their scarves were made from authentic silk.
The impression of these shops grew familiar, until I reached the Dil-Suzani Botique. The shop is run by Dilshod, whom I heard even at some distance talking to his clients in decent English, seamlessly switching to French and then greeting me in German, once I had entered his shop and he had asked where I was from. This shop was truly different and unique on its own!
For more than ten years, Dilshod has been running the shop and by now the Dil-Suzani Boutique is well known for its high quality embroideries. Someone passing by may have just thought he is selling some sort of funny carpets. But after talking to him she would have learned that these were traditional Uzbek suzani and would share his passion for all the intricate little details and hidden meanings of their patterns. And eventually pay a decent price to keep a suzani as her very special gift from Uzbekistan.
When running the shop for over ten years, Dilshod had come across people from all over the world. But unlike other shop owners, he really had to talk with the tourists, explaining the meaning of the embroideries, and finally inspiring them to pay for them. Targeting a high quality — high price — low volume segment of customers, Dilshod had to engage with them a lot more, picking up words from so many languages and thus speaking English and many other foreign languages a lot better than the average shop owner. A hypothesis I tested soon after when visiting a real carpet shop and finding that the owner as well spoke decent English.
For the average tourist shop that sells the usual tourist stuff which it got from the same supplier, competition among the shops levels out any competitive advantages and thus differences in price. The price quotes were still about ten times higher than what the locals would pay, but with some finesse you could negotiate a reasonable price. And then there were no substantial differences in pricing among different shops. (Prices are generally low, as compared to Germany, but you just don’t go to these shops or the bazaar without bargaining. That’s part of the game.)
Your shop will only receive special attention, if your value proposition is significantly different from the shops surrounding you. And that is what needs to be addressed by your skill-level and your strategy for customer targeting.