The phenomenon called Retail (Part II)

This is in continuation to my previous article where we discussed the important factors that differentiate organized retail for mom conventional and pop shops.

Economies of scale: Most retail businesses operate on a model in which the purchase is made centrally in large volumes. As a result, the level for negotiating with suppliers and increases the acquisition occurs on very low rates. This cost saving is the main factor that determines the high levels of profitability of supermarkets.

Better quality: The advantage is not only in terms of costs, but also in terms of quality. When the order amount is high, suppliers take it more seriously and focus on the quality of their products. Moreover, the expectation of huge orders creates a strong competition between the suppliers and manufactures. As a result of this competition, the efforts on improving the quality and increase innovation, thereby greatly benefit the end customer.

Impressive range: organized retail stores operate normally in large spaces, and also because of their high purchasing power, are able to offer large product ranges. This is another reason for their popularity among customers who are able to provide the variety much better in every segment.

Customer Focus: Organized retail works on the concept of customer satisfaction. Realizing the value of customer loyalty, various mechanisms are used to impress clients. It is a systematic approach to customer feedback and timely resolution to complaints. Sophisticated CRM applications are distributed in order to keep track of the correct data of customers and their buying behavior. This not only helps to customer satisfaction, but also allows the company to detail are more adaptable in terms of ever-changing tastes and preferences of customers .......