Retail and retail network in St. Petersburg. Symbiosis or healthy competition?

When there are too many competing companies working in a single format, the fierce struggle for power begins, to which the strongest naturally wins. To date, in St. Petersburg, the level of market concentration is relatively low, and in comparison with European cities, it generally occupies the lowest positions. Regardless of whether retail trade will survive in this struggle, many entrepreneurs will leave this business forever, and this is quite natural. However, independent small companies will not disappear altogether, they will simply learn to work in a completely different format.

Independent retailers often buy goods from small suppliers and from new market users who manufacture original products. Small suppliers often do not represent a particular interest for grid companies, since they often can not fulfill exactly the conditions under which a large grid company works, very often they do not have the necessary resources to provide the necessary quantity of goods on time and in order to provide Retailer the necessary deferral of payment. In addition, retail trade involves the study of consumer demand, but because it purchases exactly the kind of product that is popular with residents of the area. Independent entrepreneurs do not waste energy on supporting a general assortment network matrix, but buy goods for the needs of the individual consumer.

Unfortunately, for networkers, small companies supply not only goods of daily demand to the market, they offer their unique knowledge and experience to buyers. Small traders are well versed in the quality of goods, they know the strengths and weaknesses, and all the features of each. Buyers trust the knowledge of specific vendors and will never trade this level of communication for a soulless network machine. No program will teach the seller live communication. Undoubtedly, there are a number of products that are easily sold and buyers are happy to purchase them, so retailing in a number of segments will always be one step ahead of networkers.

Independent entrepreneurs always strive to improve the service and product quality, because this is their store, they are ready to invest in it forces and means. Networkers are just hired workers, so they work mechanically. Although many independent entrepreneurs today are working only to survive and earn a few extra tens of thousands of rubles, nevertheless, the future for enthusiastic and brave figures. The owner of the store takes care of his company and does everything possible to make his business flourish. He does not need marketing research, because he talks with his customers every day and knows their tastes and needs perfectly.

The main advantage that retailers have in front of networkers is the high manageability at the local level and the immediate response from management to the shortcomings in the supply and service system. Small independent entrepreneurs sell quality, so they will never be able to lower their prices to the level of networkers, but this is not necessary - they offer only a unique high-quality product. As a result, a huge number of buyers will return here again and again. A tiny store that sells freshly baked bread will become an excellent competitor to a huge hypermarket, because it is the quality of products that determines the demand for this product.

It's no secret that network companies prefer the quality of service. The analysis of retail trade showed that the owners of small shops and kiosks are ready to invest the resources and resources to learn as best as possible their own customers. The maintenance of such outlets often reduces not just to trading calculations, but to live communication, which is much appreciated. These six factors are only in the hands of small independent companies, they are enough to ensure that independent retailers continue to please the residents of the northern capital with original customer experience and quality service, despite the incredible efforts of network companies.

A few years ago it seemed that small shops and kiosks on the streets of St. Petersburg live out their time, so intensely included networkers on the food market of the city. Now the era of the revival of food markets and trade tents begins , many manufacturers continue to work with them from the nearest regions, especially since the Ministry of Finance decided to put in order the taxation of retail trade. Despite such a serious competition in the form of network companies, small producers will grow and prosper, allowing their customers to enjoy quality and original products.