Retail businesses are the most in-thing in today’s world. If you are a Traveler, you would know this fact that wherever you visit you can buy the utilities from the local market and in there, you won’t see branded items, there will be small and medium-sized retail franchises, or we should say business centers, which will help you in finding whatever you want. That is the power of retail businesses in a local market setup, and people do consider these types of businesses for short term investments also.
Retail businesses in the local market, has a very strong and important role as the people get easily approach these market in urgent need. Especially in those areas which are away from the urban settlements, these small to average markets are the only hope and the only place where they can buy their utilities. Moreover, most of US rely a lot on retail shops for our local needs well it’s quite evident if you need anything for some normal household duties, you won’t go to the hyper star or multi-purpose departmental store you would surely go to the nearest market, and to the nearest shop to have your need fulfilled.
If you look at our previous blog, which was quite interesting, one regarding how you streamline your retail operation using retail pos, in that blog we tried to cover all the main aspects how pos can be utilized to facilitate business operation and making life easier for the owners to manage most of the operation through POS because the right POS system according to your business demands can be effective.
Retail Business, The Backbone of Local Market:
What are the few reasons due to which the local markets and the retail businesses are the first choices of the people? Living in the nearby area rather than buying the heavy stuff, by saying heavy, I mean, the expensive stuff, is due to the low prices available in the local market.
For example, you have to buy a new dress, and you have less time to select the dress and wear in the party tonight, but you have a lesser time, so instead of going to the faraway multiplex Mall, where you can find hundreds of brands offering new dresses, you can visit the nearest local market. Which may not have the same quality of dress but it can serve you to a certain extent so you can wear the dress which cannot only be koozie but will help you in looking much better and different because the local market do offer variety in dresses and other types of stuff that you need in your urgent needs which is the reason why it is the most wanted thing locally these days. In this article, we will try to reflect on the importance of retail businesses in a local market and how these local setups help in generating good profits.
The retail businesses are low-cost startups initially when you plan to start a retail shop or a franchise what is the first thing that came into your mind? It is the place or space where you can set up your business. Nowhere is a catch, a peculiarity, where your intelligence and your smart work will come into play, here you have to decide where you want to go from here? If you really want to move after some time then you must formulate is a strategy where you can earn quickly through a short setup, and when you find yourself in a very prosperous situation you can easily pack your bags and move to the big town.
Or else if you want to have a prosperous, long-term setup, you must invest in order to strengthen your base in the respective market, coming back to the point, the retail businesses or the retail shops are very easy to set as it is being Settled in local market where there is no need for an expensive setup, just a simple, welcoming and easy to go ice breaker where people can meet the retailer and can take this their respective utilities.
Retail businesses and startups offer a good opportunity for employment, and it also provides good chances for experimenting with your capabilities as a good manager. For instance, if you are managing a retail startup and you have a staff of 10 people under you working in shifts, you can easily judge the way you deal with different scenarios with the type of work you are doing.
Moreover, it can also help you in judging your criteria in managing people, and if this formula works, you can expand your business and can have more and more people who cannot only benefit you but can also solve the problem of unemployment in your area where you are operating. There was a survey that took place in New York City, conducted by the students of the University of Colorado, which shows that independent startups and retail businesses have minimized unemployment ratio in the eastern and Pacific region of the USA, which in reality is the 15.6% of the total unemployed population in that region.
Retail businesses in startups offer another advantage. It is quite evident when you have a limited startup, the backup element or we should say the inventory is also pretty much according to the needs. It is an advantage for the people who are managing these type of businesses, by saying this I mean with limited space to fill you cannot put each and everything in your stock because people will not also expect many offers from your side because they can easily judge by the space you have in your retail place.
Although you can have a manageable inventory somewhere in the nearby stores, it also affects the amount of space you have. you can buy many things in chunks so you may have some money in the backup is well, and can also add to the money you have earned by the end of the month or by the end of the day, you can put this money in your savings which can be invested later.
A manageable inventory is a very smart tool in retail business because it will minimize the danger of the stock getting out of date or expired or the stock getting wasted by mishandling or mistreatment of the staff.
Another advantage of having a retail business in a local market is its adaptation to the trends and promotions being followed all around. Promotions and retail business have an un-ended relationship since the inception, it is a common factor and understanding that, “the more you follow the trend, the more sales you get & the more profit you can earn from them” once you have a stronghold on the promotional activities of your brand it can result in great profits.
As a limited startup, the retail business can easily adapt according to the situation of the local market as compared to highly competitive and well-settled business counterparts, which if asked to adapt to the situation will take a longer time to adapt into the complete colors of the region as compared to what the retail businesses in local market can.
This easy settlement thing can sometimes backfire. If taken for granted because you cannot adapt faster, take some time with the trend being followed, and when you see that there are no signs for the train to come back again for some time, then you should go for another adaptation. Without complete knowledge about the promotions, you should not impose on your brand, and you must not go for the adaptation. Just go with the flow and then make a decision.
Better Opportunityof Getting Investments:
Another Advantage of retail business and Retail setup is the opportunity of getting more and more investments from the investors. In today’s world, each and every investor from anywhere would really want a good security of whatever he is investing in, and it is quite obvious because in this digital age where the ransomware, theft, web robberies are so common that every person who is investing in any business would really want a kind of security or would really want to invest as minimum as possible in the local market so if there is any loss it should not be that big and should not affect the investors own settlements.
The chance to invest in the local market especially in the retail business is very high because investors would really target local markets from both national and international Standpoints. If you have any international investor in your brand, you can find good respect among the customers which could really help you in building a good strong relationship with the buyers as well. It is a common practice being followed in the local markets of Europe, South America, Central America, and Canada.
A Step Towards Strengthening the GDP:
Retail businesses and shorts startups provide a great opportunity for strengthening the economy as well. The local market can help a great deal in boosting the Gross Domestic Product (GDP) of a country. According to a research publication of Bloomberg, in the past decade, the local market investments and the taxes being received from there have posted up to 90% of the GDP of the country.
Let’s take an example of the People’s Republic of China, in the past decade, that you have seen China progressing so rapidly, so what has been the real reason behind this success? The answer to this question is there long term investment in their local brands and the local markets as well, their investment schemes and the loan plans are so flexible that people took the loans and set up their businesses, and return the money to the government with good percentage which gave a certain rise to the economy, as their economy boosted, so the GDP got increased which results in making China the biggest economy of the world in 2017. It is still the biggest economy and entrepreneurial ground of Asia and the second biggest economy in the world.
Not only they progressed so rapidly, their local markets and local websites normally dealing in the retail businesses started acquiring international brands as their affiliated commercial projects, like recently alibaba.com, a famous Chinese multi retail business website purchased the rights to do business (R.O.B) of nearly 80 different retail websites from other Asian countries which includes Pakistan, Bangladesh, Nepal, India, Iran, and Saudi Arabia. all of this became possible because of their investments and timely decisions for boosting their retail market’s business.
Retail Businesses Situation in Pakistan:
Pakistan, being the fourth largest entrepreneurial market of Asia, has been a bit behind in developing its retail businesses in the local market. Here you will find a lot of local markets, but with different brands, usually locally available brands which are an incomplete reach of the local people, but all international brands are only centered towards the Urban population, as the rural population is still under the process of understandability and development.
Although the fast-food sector somehow has a relationship with the retail businesses have blossomed a lot with the invention of retail business management systems and some investment as well, which are, of course not international but local. What are the chief reasons why the retail businesses in the local market are still under development stages?
The reason behind this is the reluctance of the people who are natives but sitting outside. They are quite hesitant to invest in the local brands of their country. Moreover, the local brands have also failed in somewhat winning the confidence of their investors may be the reason behind such failure is the quality of the products they are preparing, which somehow failed to meet the international standards of the things they are making.
It becomes seriously difficult for a foreign investor when dealing with a local business handler in a country like Pakistan because they don’t even have the understanding of the market strategy outside their country, but now, with the new regime in power it is expected to get better, but it will take some time for the retail businesses in the local market to be fully effective and profitable.