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RetailX
A Branded chain of small retail stores
In this, 10,000+ small and individual retail stores, mostly existing stores, including grocery stores, home appliance stores, furniture stores, hardware stores, and garments stores from across south India, are participating to form an informal branded chain. Of course, this is the centrally controlling informal alliance of small retailers for saving by cooperative purchasing, marketing, and branding. In this, each participating store can grow to a brand-new store and be able to attract and impress customers by offering diverse items at affordable prices like in hypermarts and reputed e-commerce companies, inexpensively.
What is the retailers' cooperative company?
A retailers' cooperative is a type of cooperative which employs economies of scale on behalf of its member retailers. In this retailers' cooperatives, use their cooperative direct bulk purchasing and sharing power to acquire huge discounts from manufacturers, and often reduce marketing/promotion/delivery expenses through their marketing alliance.
It is small retail shop/store owners' cooperative, where 10000+ small and individual (unorganized) retailers unite for a cause- cooperate in purchase, market, and brand and save costs to succeed in this tough and competitive market. Of course, this retailers' cooperative is essentially a grouping or alliance of independently owned businesses/retail stores that cooperate to purchase in bulk directly from sources and share among to enjoy huge bulk order discounts; and jointly engage in promotion/advertisement/ marketing/delivery efforts to build a brand image inexpensively. It is not only beneficial but crucial today for unorganized locally owned grocery stores, home applies stores, hardware stores, furniture stores, garments stores, meat stores, and even local restaurants, etc
Why such a
retailers' cooperative company?
E-commerce influence
Consumers no longer make purchasing decisions in the same way they did a decade ago. Today, the internet has become an entrenched part of daily life, and it is changing how and what people buy. In India, for example, online retails accounted for 3 percent of total retail sales in 2018, expect to grow six-fold (300 billion dollars) by 2030. But, digitally-influenced retail spending to surpass USD 1.5 trillion by 2030 accounting for about 80 percent of total retail spending- huge.
India is being fertile land for e-commerce. There are many very large, large, medium, and small e-commerce vendors in India. Along with these players, hyper-marts, super-market chains, and discount store cultures are developing in India. These large retail players nowadays are a big challenge to millions of small unorganized retail stores in India.
The challenge => the opportunity.
Large e-commerce vendors, hypermarts, super-market chains, and discount store chains have bargaining power and can bulk purchase goods directly from sources/manufacturers without any middle agencies. It helps them purchase at their lowest prices and offers price discounts to customers. Moreover, large players can buy/import any goods from anywhere, which ensures good selection and diversity in those stores. But, unfortunately (and naturally) local small individual retail stores have to purchase goods from lower-level agencies, which causes to much increase in prices and limits the items. In this scenario, the retailers' cooperative is the only option for small retailers to purchase goods at the same prices as large players. If so, Surprisingly, small retailers can sell goods at a lower price than large players because business expenses are less than the large one.
With one of the world's lowest data and smartphone costs, growing internet penetration, economic and social development, and a proliferation of new online shopping channels, India is experiencing a dramatic rise in e-commerce and digitally influenced spending as India becomes the second largest digital economy by the number of internet users, the report said.
This shift into the digital battleground is not confined to a handful of products and service categories- it is almost universal. Today, consumers increasingly use multiple channels- including traditional brick-and-mortar stores, the internet, social media, and mobile devices- simultaneously and in sequence during each of their purchasing journeys. So,
Today, customers' choice is multi-channels
So, Winning retailers must use and capitalize on all of these customer touchpoints and ensure that these channels integrate with and complement one another. Retail channel boundaries will blur; retailers will seek to engage customers across all channels, not only to achieve business results but also to develop a deeper understanding of- and deeper relationships with- their customers. Consumers will come to expect a personalized, seamless all-channel experience- and the best retailers will meet this expectation by adopting possible alliances and cooperatives in the purchase, marketing, and branding.
The main functions of this "retailers' cooperative"
First off, There is only benefits and advantages from retailers' cooperative nothing disadvantages there. In this small retailers' cooperative, mainly there are two cooperatives for mutual benefit. 1-purchase cooperative. 2- marketing and branding cooperative
1- Purchase cooperative
In order to lower the purchase costs, retailers' cooperatives establish a central buying system, providing them the opportunity to purchase in bulk directly from sources from across the world at huge discounts- and divide among. It helps each member merchant to attract and impress its customers by offering diverse and quality products at a discount rate.
The main aim of the retailers' cooperative is to improve buying conditions. Retailers' purchase cooperative can buy in bulk at its lowest prices direct from sources from across the globe for its members. The incentive and main motive to join and remain in the retailers' cooperative is the huge savings- huge discounts that members gain from centralized cooperative bulk purchasing and dividing among- the bulk order discount. Generally, surpluses are shared by the members in accordance with their original input.
For example- simply, if a group of 150 merchants co-operates to purchase /import 35-40 tons (a 40 ft container load) of date, and each share 300 kg dates, each merchant in this group can enjoy bulk order price- the lowest price and maximum profit. In this, each individual retail store/merchant participating in the cooperative can save 20-30 percent more in purchase costs than locally buying. Like this furniture, hardware, cloths whatever save 20-30% in prices than individually locally purchasing, and available all latest and trendy items from across the globe in the group stores. Even purchasing a few pieces/less quantity in the group can enjoy bulk order price because we work out group purchase and bulk order.
2- Marketing- and branding, cooperative
Retailers' cooperatives also engage in group advertising, promotion, uniform stock merchandising, private label packing, and branding. This leads to consumer recognition of brands and gives the member stores the benefits of being branded one, with the autonomy and freedom of an independent store. Yes,
First off, cooperation/alliance in marketing is an ideal option for remotely working small retailers from the same sector who are looking for a rather inexpensive form of promotion. This is because many small retailers share not only the strategy but also the resources. For example- together they may hire a graphic designer and marketing manager, may conduct occasional offer sales and may introduce coupons, etc - most importantly, join in the purchase, logistics, and transportation, and split/share all of the expenses. Whatever the case is, cooperative promotion truly is among the least expensive and tension-free marketing methodologies available these days, especially for small retailers.
The urgency of such retailers' co-ops company in this uncertain time.
If frankly say, in these uncertain, volatile, and complex markets there are no other options for small retailers other than joining in such cooperatives and alliances to compete and go ahead, mainly to reduce purchase and marketing costs, and attract and impress customers by competing with large players.
The urgency of such retailers' co-ops company in this uncertain time.
Over the years, the retail market is being overcrowded by retailers and made tougher and tougher by new entries. Today more and more wise retailers are looking into new methods mainly in sales and marketing to deal with changing customer behavior, recession, increased competition, increased business costs, etc. The purpose of all retailers, no matter their size, small or large, is to focus on attracting customers, increasing sales and market exposure, and becoming more time effective and cost-effective. Therefore, today more and more retailers have started to apply cooperatives and alliances in purchasing and marketing to lower purchase and marketing costs- and for branding.
If frankly say, in these uncertain, volatile, and complex markets there are no other options for small retailers other than joining in such cooperatives and alliances to compete and go ahead, mainly to reduce purchase and marketing costs, and attract and impress customers by competing with large players.
There are various benefits and advantages of operating retailers co-operative such as buying economy, no middlemen, quality goods at the lowest price, purchase from sources, always fresh in quality, non-cost delivery, group e-commerce, technology support, distribution of dividends to the members, etc. Retailers' co-operative eliminates middlemen from the channel of distribution.
Small retailers' cooperative is an inexpensive and result-assured marketing and growth strategy today.
Retailers' co-operative is sensible when the purchasing and marketing goals of participating retailers can be combined with a concrete performance measure for the end consumers. Successful retailers' co-operations generate “win-win-win” situations that offer value not only to both participating retailers but also to their customers.
Great advantages of this retailers' cooperative - to its member retail stores.
Along with the ability to purchase goods at the lowest prices directly from sources/manufacturers, reducing costs in marketing, logistics, and advertising is the main highlight of retailers' cooperatives. So, the participating retailers can offer quality goods at attractive prices, mostly below the prices of discounted hypermarkets, to customers regularly, which improves local popularity and acceptances, so sale and revenue. Moreover, group stores can sell many more new items than other stores.
Great advantages of this retailers' cooperative - to its member retail stores.
1. Elimination of middlemen in purchase
retailers' cooperative eliminates middlemen from the channel of purchasing. It purchases a large volume of quality goods directly from producers and divides them among its members. So, even each small member of the group can enjoy a bulk order discount.
2. Economy in buying
Buying economy is another major advantage of retailers' co-operative. Retailers' cooperative purchases in large quantities of goods directly from producers/sources at a maximum discounted price. So, the end consumers get goods at a reasonable price like in a large discount store, e-commerce, or hypermart. It attracts and impresses the consumers and helps to make a long-lasting bond.
3. Supply of quality goods
Retailers' co-operative purchase goods centrally by considering all quality standard checkings. This helps its member retail stores to sell quality goods to its consumers. This sets consumers free from exploitation and adulterated goods. Increase popularity and reputation locally.
4. Supply of diverse and trending goods
Retailers' co-operative can centrally purchase/source/import diverse including latest trending goods from across the world. This helps its member retail stores to sell diverse products/ latest rending goods to its local consumers. This help to attract and impress customers, Increase popularity and reputation locally.
5. Best goods at a cheap rate
Retailers' co-operative can bulk purchase/source/import, diverse goods including the latest trending products, from across the globe, directly from the producers, centrally, by considering all quality standard checking.
This central bulk purchase system eliminate middlemen by purchasing large quantity of goods directly from producers at relatively cheap price, operation cost is also low and burden of tax is also low on such stores. This is why, even
small member stores become possible to provide diverse/trending/latest goods at a cheaper price to end consumers. This help to attract customers and popularize each member store locally.
6. Dividend and saving
Retailers' co-operative can bulk purchase/source/import directly from sources, in bulk quantities, without any middle agents, which can help each member store in the group to save up to 20-30% in purchasing than locally.
7. Easiest purchasing process- and delivery at shop doorsteps.
Retailers' co-operative can bulk purchase/sourcing/import and divide among member stores, ensuring delivery at doorsteps.
8. Group e-commerce
India is experiencing a dramatic rise in e-commerce and digitally influenced spending as India becomes the second largest digital economy by the number of internet users, the report said.
This shift into the digital battleground is not confined to a handful of products and service categories- it is almost universal. Today, consumers increasingly use multiple channels- including traditional brick-and-mortar stores, online market places, e-commerce, social media, and mobile devices- simultaneously and in sequence during each of their purchasing journeys.
Winning retailers will use and capitalize on all of these customer touch points and ensure that these channels integrate with and complement one another. Retail channel boundaries will blur; retailers will seek to engage customers across all channels, not only to achieve business results but also to develop a deeper understanding of- and deeper relationships with- their customers
.
So, retailers' cooperative company is to launch group e-commerce to attract and impress its new-gen customers. Group e-commerce centrally operates while member stores deliver items to their locality as a delivery hub. It increases the efficiency and revenue of each member store
9- Marketing and branding at no cost or lowest costs.
Retailers' cooperatives can engage in group advertising, promotion, uniform stock merchandising, private label packing, and branding. This is because many small retailers share not only the strategy but also the resources. For example- together they may hire a graphic designer and marketing manager, may conduct occasional offer sales and may introduce coupons, etc - most importantly, join in the purchase, logistics, and transportation, and split/share all of the expenses.
If frankly say, there are no other options for small retailers in these tough and complicated markets other than joining in cooperatives and alliances to sustain and go ahead, mainly to reduce costs, and attract and impress customers by competing with large players.
10- Help to build Brand image and popularity for each member store- great identity. It helps to stand apart from the competition.
Retail branding is a strategy for building a strong perception of your store in your customer's minds. It’s the deliberate steps you take to evoke positive feelings and encourage customers to see your business in a certain way. In fact, the stronger your store identity and the more it resonates with your target audience, the more customers will choose you over competitors.
Generally, a brand is an identity accepted by customers.
In this retailers' cooperative, each member store is part of a large group, and is well known to local customers. More, each member store stand out from all other by selling diverse and latest and trendy products at reasonable prices to local customers- that attract/impress customers, make a bond with the store, and that make store-branded and popular organically.
As you branding a store is a costly and heavy task- and impossible to a small individual store to brandize individually- because how can they offer diverse products at the lowest prices?
That is done here inexpensively and effortlessly on the magic and synergy of cooperation.
11. Social advantages
Each member store in the retailers' Cooperative company develops a feeling of mutual cooperation and help among its members. It also develops self-confidence and the ability of self-reliance in the members. It teaches them lessons about community life as well as democratic culture. In this way, different economic, social and moral advantages can be acquired from this alliance. Ultimately retailers' cooperative is a must for the socio-economic development of India.