Indirect competition occurs when different products or services compete for the same consumer spending but are not identical or directly substitutable. Here's an example to help you understand:
Let's consider a person who is deciding between buying a bicycle or a gym membership. In this case, the bicycle and the gym membership are not the same products, but they both serve the purpose of providing exercise and promoting a healthy lifestyle. If the person chooses to buy a bicycle, they might decide to forego the gym membership, and vice versa. Even though the bicycle and the gym membership are not direct substitutes for each other, they are in indirect competition because they are competing for the same consumer's budget allocated for health and fitness-related expenses.
This example illustrates how products or services that are not identical can still compete indirectly when they serve similar purposes or target the same consumer needs.
