A wide range of products is not yet an indicator of a healthy market.

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 on the St. Petersburg market, and only one of them who was well versed in this specificity and was able to predict in advance how it will change won. It is not easy to satisfy the demands of Petersburgers, even an expanded product range is not a guarantee, but those who succeed can count on the prosperity and success of their enterprise.

It is not without reason that St. Petersburg is called the “network capital” of Russia, network trade here is 1.5 times higher than in Moscow and takes first place in Russia. Strong competition between network companies forces them to raise higher requirements for suppliers and forces them to introduce innovative trade and assortment management technologies into production. The state also made its feasible contribution to the development of healthy competition between network companies. The fines system, which has been increased to 5 million rubles since 2010, contain rather strict measures for violating the Federal Law on Trade, both by suppliers and by the companies themselves.

According to statistics, about 70% of consumer goods in the northern capital are sold through chain stores, but there are another 30% that play an important role in the development of the St. Petersburg market. They are of the greatest interest for domestic entrepreneurs, who find it difficult to provide a wide range of products, as well as for small organizations involved in the manufacture of new original goods. Such issues affect not only the nascent forms of trade, but also the 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 policy. This happens mainly in the framework of taxation systems: ordinary and simplified. Nevertheless, in the world market, price is not the main advantage of individual stores, non-chain retail is always and everywhere more expensive than chain stores, but it lives and thrives and is not going to leave the market at all. What is the secret that allows small entrepreneurs to confidently compete with large networkers?

It is no secret that all entrepreneurs strive for monopoly, but at the same time forget that the market is a self-regulatory system. Today, manufacturers of goods are interested in the development of network trading, since it is quite difficult for them to work with each customer individually. However, the market is not yet able to provide the proper number of chain stores, while they must be of various formats (from small convenience stores to hypermarkets) and have a wide range of products.

Today, this niche is confidently occupied by market traders, sellers from trays and small bazaars that provide the buyer with the most necessary everyday goods. It’s convenient for people to buy milk and bread directly at home, even if the products are a little more expensive than in the hypermarket, and the product range is significantly inferior. An analysis of the product mix shows that the downward trend in small stores will continue to flourish for a long time in the St. Petersburg market, regardless of which legislative framework is adopted.

Product assortment and product nomenclature represent the degree of similarity of goods from different trading groups, and therefore the prosperity of the food market will not do without marketing research and consumer research. Until the mechanism for the effective operation of retail chains is debugged, unhealthy competition will continue. This is the manifestation of the "invisible hand of the market."

Source: https://habr.com/ru/post/C47554/


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