BusinessIndustry

A wide product range is not yet a healthy market indicator

Consumer approaches and preferences in the choice of goods at all times significantly distinguished the population of the northern capital from other Russian consumers. Many domestic entrepreneurs tried to fight for a place in the Petersburg market, and only the one who benefited from this knowledge was able to predict in advance how it will change. It is not easy to satisfy the demands of Petersburgers, even an expanded product range is not a guarantee, but the one who succeeds to it can count on the prosperity and success of its enterprise.

St. Petersburg is not without reason called the "network capital" of Russia, network trade here is 1.5 times higher than in Moscow and ranks first in Russia. The big competition between the grid companies forces them to put forward increased requirements to suppliers and forces to introduce innovative technologies of management of trade and assortment. The state has also made its contribution to the development of healthy competition between grid companies. The system of fines, which since 2010 has been increased to 5 million rubles, contain quite stringent measures for violating the Federal Law on trade, both by suppliers and by the companies themselves.

According to statistics, about 70% of everyday goods in the northern capital is sold through chain stores, but there is another 30%, which play a significant role in the development of the St. Petersburg market. The greatest interest they represent for domestic entrepreneurs, which is difficult to provide a wide range of goods, as well as for small organizations engaged in the production of a new original product. Such issues affect not only the emerging forms of trade, but also long-known small trading companies.

Undoubtedly, network retail has significant advantages over individual small entrepreneurs, they are still trying to argue with networkers on pricing. This happens mainly within the framework of taxation systems: ordinary and simplified. Nevertheless, in the world market price is not the main advantage of individual stores, non-network retail is always and everywhere more expensive than the network, but it lives and thrives and does not intend to leave the market at all. What is the secret that allows small entrepreneurs to confidently compete with large networkers?

It's no secret that all entrepreneurs are striving for monopoly, but at the same time they forget that the market is a self-regulating system. At the moment, the producers of goods are interested in the development of network trade, since it is quite difficult for them to work with each buyer individually. However, the market is not yet able to provide the proper number of chain stores, while they must be of a variety of formats (from small stores at home to hypermarkets) and have a wide product range.

Today this niche is confidently occupied by market traders, sellers from trays and small bazaars, which provide the buyer with the most necessary goods of daily demand. It is convenient for people to buy milk and bread directly at home, even if the products are slightly more expensive than in the hypermarket, and the product range is much inferior. The analysis of the product range shows that the tendency to reduce small stores will continue to thrive on the St. Petersburg market for a long time, regardless of which legislative framework will be adopted.

Commodity assortment and commodity nomenclature represent the degree of similarity of goods from different trade groups, and therefore the prosperity of the food market will not do without marketing research and studying consumer demand. Until the mechanism of effective operation of trade networks is debugged, unhealthy competition will continue. This is the manifestation of the "invisible hand of the market."

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