There can be situations where you have common properties across entities. For example, consider the below figure where we have Customer and Supplier entities. They have three fields in common: Address1, Address2, and PhoneNo. These fields have been duplicated both in the Customer and Supplier entities.
So to remove these duplicate and redundant fields, we can move them to a common complex type called Address. Complex types group common fields so that they can be reused across entities.