Cannibalization in a business happens in different ways. An example is one, creating a store near another similar store that you own. You just cut your customers in two and not create new customers. Another is creating a product with similar benefits or offering as your similar product. People will tend to buy the newer one more than the old. This might create a new market but still the cannibalization is likely because same set of customers bought the new product but it was just seeping out the sale of your old product.