A wide range of goods is not an indicator of a healthy market

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2020-07-03 03:49:07

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Consumer attitudes and preferences in the selection of goods at all times significantly different from the population of the Northern capital from other Russian consumers. For a place on the St. Petersburg market was trying to fight a lot of local entrepreneurs, and have won only one of them who are well versed in this context, and was able in advance to predict how it will change. To meet the needs of Petersburgers quite difficult, even expanded the product range is not a guarantee, but those who succeed can expect the prosperity and success of his enterprise.

Saint Petersburg is a reason is called the “network capital” Russia, network trade is 1.5 times  higher than in Moscow and ranks first in Russia. A lot of competition between network companies is forcing them to put forward higher requirements to the suppliers and makes to introduce innovative technologies into trade management and assortment. The government also made a contribution to the development of healthy competition between the network companies. A system of fines, which in 2010 increased to 5 million rubles, contain sufficiently stringent measures for violation of the Federal law on trade, as suppliers, and by companies.

According to statistics, about 70% of the goods of daily demand in the Northern capital is sold through chain stores, but there are another 30% who are playing not the last role in development of the Petersburg market. The greatest interest they represent for local entrepreneurs, which is difficult to ensure a wide variety of goods, but also for small organizations involved in the production of a new original product. Such questions affect not only the nascent form of trade, but also long-known small trading companies.

Surely, the online retailers have significant advantages over individual small entrepreneurs, they are still trying to argue with networkers pricing. This happens mainly in the framework of tax systems: regular and simplified. However, in the world market price is not the main advantage of individual stores, brick and mortar retail is always and everywhere more expensive network, however it is alive and well and leave the market very long. What's the secret that allows small businesses to compete with large networkers?

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It's No secret that all entrepreneurs strive for a monopoly, but forget that the market – self-regulating system. At the moment the producers are interested in developing a network of trade, because it is very difficult to work with each customer individually. However, the market is not yet able to provide the proper amount of chain stores, they must be of different formats (from small shops to hypermarkets) and have a wide product range.

Today, this niche is steadily the market vendors, vendors from stalls and small markets that provide the buyer with the most necessary goods of daily demand. People are comfortable to buy milk and bread directly at the house, even if the products are a bit more expensive than the supermarket, and the product range is significantly inferior. Analysis of the product portfolio shows that the declining trend in small shops will long flourish in the St. Petersburg market, regardless of what legislative framework is adopted.

 the product range and nomenclature represent the degree of similarity of goods from different trading groups and because the prosperity of the food market will not be without marketing research and consumer research. As long as no efficient mechanism of effective work of trading networks, unhealthy competition will continue. This is the manifestation of the ‘invisible hand”.


Article in other languages:

ZH: https://www.tostpost.com/zh/business/45613-a-wide-range-of-goods-is-not-an-indicator-of-a-healthy-market.html






Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."

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