When there are too many competing companies on the market working in a single format, a fierce struggle for power begins, in which the strongest naturally wins. Today in St. Petersburg, the level of market concentration is relatively low, and compared to European cities, it generally occupies the lowest positions. Regardless of whether retail trade survives in this struggle, many entrepreneurs will forever leave this business, and this is quite natural. However, independent small companies will not disappear at all, 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 produce original products. Small suppliers are often not of particular interest to network companies, since they often cannot fulfill exactly the conditions under which a large network company operates, very often they do not have the necessary resources in order to provide the necessary quantity of goods on time and in order to provide retailer necessary deferred payment. In addition, retail involves the study of consumer demand, and therefore it purchases exactly the goods that are popular with the residents of the area. Independent entrepreneurs do not waste energy on supporting a common assortment network matrix, but purchase goods for the needs of an individual consumer.
Unfortunately, for networkers, small companies supply the market not only with everyday goods, they offer customers their unique knowledge and experience. Small traders are well versed in the quality of the goods, they know the strengths and weaknesses, and all the features of each of them. Buyers trust the knowledge of specific sellers 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 customers are happy to purchase them, so retail in a number of segments will always be one step ahead of networkers.
Independent entrepreneurs are always striving to improve service and product quality, since this is their store, they are ready to invest effort and money in it. Networkers are just hired workers, so they work mechanically. Although many independent entrepreneurs today work only to survive and earn a few tens of thousands of rubles, nevertheless, the future lies with enthusiastic and courageous figures. The store owner takes care of his company and does everything possible to make his business flourish. He does not need marketing research, because every day he communicates with his customers and knows their tastes and needs.
The main advantage that retail trade has over networkers is a high manageability at the local level and an instant response from the management to shortcomings in the supply and service system. Small independent entrepreneurs sell quality, so they can never 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 come back here again and again. A tiny store selling freshly baked bread will be an excellent competitor to a huge hypermarket, because it is the quality of the product that determines the demand for this product.
It is no secret that network companies prefer quality to speed of service. Retail analysis showed that the owners of small shops and kiosks are ready to invest effort and money in order to find out how best they can own their customers. Serving such retail outlets often comes down not just to trading settlements, but to live communication, which is much appreciated. These six factors are only at the mercy of small independent companies, they are enough to ensure that independent retailers continue to delight 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 were living out their lives, so networkers entered the city’s food market so intensively. Now the era of the revival of food markets and stalls begins , many manufacturers from nearby regions continue to work with them, especially since the Ministry of Finance decided to put in order the taxation of retail trade. Despite such serious competition in the form of network companies, small producers will grow and flourish, allowing their customers to enjoy high-quality and original products.