With technological advancements, the world of shopping is changing at a rapid pace. Several small business owners are the most affected by this recent trend, as they aren’t able to match up with the giant hypermarkets and are forced to close down eventually. This essay will discuss two of the main reasons causing this and propose measures to address the same.
Firstly, the local shopkeepers are undoubtedly no competition for the big players in the retail industry due to their grandeur, size and scale. They will often have a very tiny space to stock their products and mostly unorganized, whereas the supermarkets are ten times bigger in space. Moreover, their products are segmented by category, clearly labelled with pricing and systematically organized. For example, Tesco, which is one of the biggest chains of supermarkets have an entire aisle for each product such as Diary, Meat, Utensils and many more. To overcome this issue, small shop owners should adapt to the way business is done in the 21st century. They should take their store online, which would not cost much to set up a website and offer free home delivery service and attract the customers.
Another major concern would be the product pricing and the offers provide by the supermarkets. The products there cost 1. 5 times cheaper that any local shop. This is because they directly buy the stock from the manufacturers, thereby cutting down the middle costs. For instance, a 500 ml bottle of Head and Shoulders shampoo would cost around 120 Rupees in a supermarket, whereas the same would cost around 150 Rupees in any local shop. To address this problem, the local communities should tie-up with supermarkets for a long term period and discuss the contract terms in a way that it benefits both sides.
In conclusion, although technology can be a threat to the small businessmen locally, these problems are not insurmountable. In my view, it is the responsibility of both, the local business owners and the supermarkets and they should begin by considering some of the solutions proposed above.
With technological advancements, the world of shopping is changing at a rapid pace. Several
small
business owners are the most
affected
by this recent trend, as they aren’t able to match up with the giant hypermarkets and
are forced
to close down
eventually
. This essay will discuss two of the main reasons causing this and propose measures to address the same.
Firstly
, the
local
shopkeepers are
undoubtedly
no competition for the
big
players in the retail industry due to their grandeur, size and scale. They will
often
have a
very
tiny space to stock their
products
and
mostly
unorganized, whereas the supermarkets are ten times bigger in space.
Moreover
, their
products
are segmented
by category,
clearly
labelled with pricing and
systematically
organized.
For example
,
Tesco
, which is one of the biggest chains of supermarkets have an entire aisle for each
product
such as Diary, Meat, Utensils and
many
more. To overcome this issue,
small
shop owners should adapt to the way business
is done
in the 21st century. They should take their store online, which would not
cost
much to set up a website and offer free home delivery service and attract the customers.
Another major concern would be the
product
pricing and the offers provide by the supermarkets. The
products
there
cost
1. 5 times cheaper that any
local
shop. This is
because
they
directly
buy
the stock from the manufacturers, thereby cutting down the middle
costs
.
For instance
, a 500 ml bottle of Head and Shoulders shampoo would
cost
around 120 Rupees in a supermarket, whereas the same would
cost
around 150 Rupees in any
local
shop. To address this problem, the
local
communities should tie-up with supermarkets for a long term period and discuss the contract terms in a way that it benefits both sides.
In conclusion
, although technology can be a threat to the
small
businessmen
locally
, these problems are not insurmountable. In my view, it is the responsibility of both, the
local
business owners and the
supermarkets and
they should
begin
by considering
some of the
solutions proposed above.