Challenges posed by strong chains to small retailers
The retailers are the people who are at the front desk to deal with the customers and sell the products. They are the one to face the greater risk and that is why there profit margin is usually more than anyone else in the supply chain. Due to the attractiveness in the profit margin a lot of people want to open their own retail stores on small scale. Though the retail business is quite attractive but every single person who wants to become a small retailer must know the challenges posed to his small retail business by the strong chains. Following are the challenges posed by strong chains to small retailers:
- Product Sourcing
Product sourcing sometimes becomes a real major problem for the small retailers. They generally source their product from the wholesale suppliers, distributors or manufacturers but sometimes they are unable to get the wholesale supplies from them due to the stronger retail chains. Why is it so? It is because the wholesalers, manufacturers and distributors prefer the strong retail chains over the smaller ones because the strong retail chains have greater customer attraction, they have a developed brand name, they buy in larger quantities and they sell the retail products to the customers quickly. Therefore, the very first challenge that the small retailers face due to the strong chains is that they need to maintain good relationship with the wholesale suppliers and manufacturers and get the supplies from them timely.
- Attracting the customers
After product sourcing, attracting the customers is the biggest challenge for the small retailers. It is a general behaviour of people that they love to shop from those retail outlets which are well known and established. The reason behind it is that people feel that they will get the best price for the product they want to buy and that the product will be of high quality as well.
- Offering attractive prices
Offering attractive prices is the next challenge posed by the strong chains to the small retailers because for the small retailer it is an important technique to attract customers. It is a challenge for them to offer prices lower than the giant and strong retailers in order to run their small retail business.
- Excellent services
For small retailers it is a challenge to provide excellent services to their customers so that they could stand out against the strong retailers. If they are unable to provide better services than the strong retailers, they are sure to lose their potential customers. Other than that they also need to satisfy their wholesale suppliers or distributors by facilitating them to maximum. They need to clear the account payables as quickly as possible so that their relation with the wholesale supplier or the distributor remains healthy.
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Article Tags:
retailers
,products
,wholesale
,supplies
,buying
,selling
,manufacturers
,suppliers
,distributors
,retail
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