Smal retail in the conditions of recession
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Smal retail in the conditions of recession
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Smal retail in the conditions of recession
- 1. LOGO Kiev, March, 30, 2009 Oleksandra Shpytyak, DSFA autor and presenter Svitlana Shmelova, PhD, DSFA – adviser Small retail in the conditions of recession
- 2. June 15, 2015 2 Favorable possibility disappears among difficulties and problems Albert Einstein Oleksandra Shpytyak. Small retail in the condition of recession
- 3. June 15, 2015 3 Google on demand «crisis» finds 178 000 000 pages on English-speaking sites Oleksandra Shpytyak. Small retail in the condition of recession
- 4. June 15, 2015 4 According to experts: «present recession will at least 3 years, and, possible, even longer» «the problems caused by present economic recession, probably, will be notable at 15 years» Oleksandra Shpytyak. Small retail in the condition of recession
- 5. June 15, 2015 5 In my opinion, private retail is one of spheres where it is possible to begin new business and stably to receive profit in the circumstances with the least risks. Oleksandra Shpytyak. Small retail in the condition of recession
- 6. June 15, 2015 6 The purpose of my work – to show as we can don’t lose business and even to find profit in recession time at the certain approach. Oleksandra Shpytyak. Small retail in the condition of recession
- 7. June 15, 2015 7 A present situation in retail sphere Oleksandra Shpytyak. Small retail in the condition of recession
- 8. June 15, 2015 8 Large retail companies reconsider they investment plans now Long-term and large projects are “frozen” CapEx-programs reduced Low profitable and unprofitable shops are closed Falling of demand for the goods Present conditions of crediting by a foreign currency weaken a position of large retail networks Oleksandra Shpytyak. Small retail in the condition of recession
- 9. June 15, 2015 9 Basic problem of the small seller this is illiterate business dealing Marketing researches aren’t carried out Innovative activity isn’t conducted The basic financial and economic indicators miscalculate Falling of demand for the goods Forecasts and strategy aren’t use Oleksandra Shpytyak. Small retail in the condition of recession
- 10. June 15, 2015 10 The “small boat” of the small retail has a lot of risk at the big ocean of business, but the small boat is more mobile and easy for a timely course change Oleksandra Shpytyak. Small retail in the condition of recession
- 11. June 15, 2015 11 Small retail in the conditions of recession Oleksandra Shpytyak. Small retail in the condition of recession
- 12. June 15, 2015 12 For 70 % of Ukrainians the main criterion of a choice of shop is the convenient place and a comprehensible price Oleksandra Shpytyak. Small retail in the condition of recession
- 13. June 15, 2015 13 Choice of shopTo receive the necessary goods For the good price Convenient place Oleksandra Shpytyak. Small retail in the condition of recession
- 14. June 15, 2015 14 «Market will don’t take former 25-30 thousand names of the goods which sell retail networks. The list of the goods will be reduced to 3-5 thousand and it there will be only those goods which quickly turnover and is cheaper» president of the Ukrainian Trading Association I.Balenko Oleksandra Shpytyak. Small retail in the condition of recession
- 15. June 15, 2015 15 Necessary to define correctly the purposes of activity for to keep and even to expand clientele and the business income Oleksandra Shpytyak. Small retail in the condition of recession
- 16. June 15, 2015 16 The basic questions Q What there is my business?For whom are we necessary? Why my company here? What is my uniqueness consists? For whom we work? What is distinguishes us from other companies? Oleksandra Shpytyak. Small retail in the condition of recession
- 17. June 15, 2015 17 Revision of strategy or its formulation - if it hasn’t been made before - should become by the first step Oleksandra Shpytyak. Small retail in the condition of recession
- 18. June 15, 2015 18 “If you don’t know where you are going,” the Scarecrow said to Dorothy, “it doesn’t matter which road you take.” Oleksandra Shpytyak. Small retail in the condition of recession
- 19. June 15, 2015 19 Any business company receives the income by satisfies requirements of the buyer for the goods Today’s direction should become: on requirement of buyers, taking into account their new financial situation, taking into account their new style of a life or consumer preferences Oleksandra Shpytyak. Small retail in the condition of recession
- 20. June 15, 2015 20 “You” “what you receive?” “what we do for you?” “We” “we work for you” “we try for you” Oleksandra Shpytyak. Small retail in the condition of recession
- 21. June 15, 2015 21 People don’t buy the goods but they solve their problems by purchase of these goods People don’t buy service but people solve their problems by acquisition of these services Oleksandra Shpytyak. Small retail in the condition of recession
- 22. June 15, 2015 22 On what lose small retail and as it to correct Oleksandra Shpytyak. Small retail in the condition of recession
- 23. June 15, 2015 23 is required 1 Market research of consumer preferences 2 Research of satisfaction and loyalty of clients 3 Research of image of the company Oleksandra Shpytyak. Small retail in the condition of recession
- 24. June 15, 2015 24 The company purposes = the purposes of its employees Basic formula of company motivation Values of the company = values of its employees Oleksandra Shpytyak. Small retail in the condition of recession
- 25. June 15, 2015 25 It is necessary to concentrate efforts to creation of a complementary team Oleksandra Shpytyak. Small retail in the condition of recession
- 26. June 15, 2015 26 For reception of competitive advantage at a difficult economic situation it is necessary to use all possibilities and to take into consideration all existing thoughts and the points of view Oleksandra Shpytyak. Small retail in the condition of recession
- 27. June 15, 2015 27 It is possible to use the personnel in quality of trend spotters for to be well informed about new ideas Oleksandra Shpytyak. Small retail in the condition of recession
- 28. June 15, 2015 28 For a practical estimation of quality of work of sellers: «the latent buyer» «shopping by phone» Oleksandra Shpytyak. Small retail in the condition of recession
- 29. June 15, 2015 29 Incremental innovations for services are the perspective phenomenon for small retail Oleksandra Shpytyak. Small retail in the condition of recession
- 30. June 15, 2015 30 «More often the buyers doesn’t know what they wants, until someone will not offer it» Business should define – what is necessary for the buyer&client today and to guess - what for clients will be necessary tomorrow Oleksandra Shpytyak. Small retail in the condition of recession
- 31. June 15, 2015 31 It is necessary to analyze, generate and make use of experience of other successful companies for satisfaction of today's requirements of clients Oleksandra Shpytyak. Small retail in the condition of recession
- 32. June 15, 2015 32 Price Quality Service Availability Can be copied by your competitors But it is impossible to copy corporate culture and a bright brand. Oleksandra Shpytyak. Small retail in the condition of recession
- 33. June 15, 2015 33 Thus always it is necessary to be ready to show the goods, its quality and freshness. Quality and freshness of goods and your business ideas should be the truth. Oleksandra Shpytyak. Small retail in the condition of recession
- 34. June 15, 2015 34 Conclusions Oleksandra Shpytyak. Small retail in the condition of recession
- 35. June 15, 2015 35 “the important factor of recession of an economic conjuncture, except deficiency of credit resources, is “uncertainty in economy” Oleksandra Shpytyak. Small retail in the condition of recession
- 36. June 15, 2015 36 Transparency Sustainability Responsibility New characteristic of the successful company Oleksandra Shpytyak. Small retail in the condition of recession
- 37. June 15, 2015 37 TheClient Team Professionalism YourText Responsibility Should become the basic values of business in Ukraine today Oleksandra Shpytyak. Small retail in the condition of recession
- 38. June 15, 2015 38 Three persons worked, they did the same work. But when their have been asked what they do, answers were a different. I wish to all of us to build a Temple of Our Life One has said: "I crush stone" Other has said: "I make money for life by myself " The third has answered: "I build a Temple“ Oleksandra Shpytyak. Small retail in the condition of recession
- 39. LOGO Thanks a lot for your attentionThanks a lot for your attention Questions? Oleksandra Shpytyak, DSFA Svitlana Shmelova, PhD, DSFA, depwr@a-teleport.com
Notas del editor
- All people now talk about crisis. Google on demand «crisis» finds 178 000 000 pages and it is on English-speaking sites only. But I think that this word spreads panic and stupor, and I will talk about “recession”.
- According to experts, «the problems caused by present economic recession, probably, will be notable at 15 years». But it doesn’t mean that people will stop to live and consume essential commodities. People will use a foodstuff and will be treated, people will to die and will be born, people even will marry but in New Style, corresponding to this time.
- In my opinion, private retail is one of spheres where it is possible to begin new business and stably to receive profit in the circumstances with the least risks.
- The purpose of my work – to show as we can don’t lose business and even to find profit in recession time at the certain approach.
- The large retail companies reconsider they investment plans now. Long-term and large projects are “frozen” CapEx-programs reduced, low profitable and unprofitable shops are closed. Falling of demand for the goods present conditions of crediting by a foreign currency weaken a position of large retail networks.
- At this time some private shops of retail trade are ruined, because don’t maintain a competition with large network supermarkets in a competition on quality of service, assortment of production and on a number of other indicators. the basic problem of the small seller this is illiterate business dealing As result, we can meet frequently as small sellers have inert reaction for change of consumer inquiries of the buyer. But the modern situation demands fast and adequate decisions.
- At the same time, in my opinion, small retail has every chance for to receive a part of the market from large network business while this network have financial problems. The “small boat” of the small retailа has a lot of risk at the big ocean of business, but the small boat is more mobile and easy for a timely course change.
- According to data of research of GFK company, «for 70 % of Ukrainians the main criterion of a choice of shop is the convenient place and a comprehensible price»
- As a matter of fact, for the buyer all the same where to buy products and hasn’t value it is the big supermarket or small shop. The main thing in this situation is to receive the necessary goods for the good price, to receive a correct combination of the price and quality
- Thus, inquiries of buyers have changed also The list of the goods will be reduced from 25-30 thousand names to 3-5 thousand and it there will be only those goods which quickly turnover and is cheaper
- For small retailу it is necessary to define correctly the purposes of activity for to keep and even to expand clientele and the business income.
- With confidence it is possible to say, that in a present situation many courageous and ready to run risks companies receive chance to have a profitable business and will find the niches of the market, released under the influence of crisis. Nowadays companies must to answer the basic questions for this purpose: What there is my business? Why my company here? What is my uniqueness consists? What is distinguishes us from other companies? For whom we work? For whom are we necessary?
- Revision of strategy or its formulation - if it hasn’t been made before – should become by the first step.
- Because “If you don’t know where you are going,” the Scarecrow said to Dorothy, “it doesn’t matter which road you take.”
- During this difficult time it is necessary to remember: any business company receives the income by satisfies requirements of the buyer for the goods Therefore today the rate should become on requirement of buyers, taking into account their new financial situation, their new style of a life or consumer preferences.
- It is necessary to change language of dialogue with clients, plentifully adding words “You” (for example, “what you receive? and “what we do for you?”) and “we” (“we work for you”, “we try for you”)
- It is daily necessary to remember: people don’t buy the goods but they solve their problems by purchase of these goods. Similarly people don’t buy service but people solve their problems by acquisition of these services. It is especially actually today.
- For to get competitive advantage in small retail in recession, it is necessary to accept a concrete complex of the activities, which are directed to adaptation for new conditions of the market. Market research of consumer preferences, research of satisfaction and loyalty of clients, research of image of the company is required.
- In my opinion, the basic company’s problems on are often reduced to qualification of the personnel and its motivation. We have got used to perceive employees as victim of crash of the companies, but often employees is reasons of crash, unfortunately. Basic formula of company motivation should become: the company purposes = the purposes of its employees. values of the company = values of its employees.
- It is necessary to concentrate efforts to creation of a complementary team, for which individual strengths of its members become the general and productive, and weaknesses of team members haven’t sense anymore because are already compensated by strengths of other team members.
- For reception of competitive advantage in a difficult economic situation it is necessary to use all possibilities and to take into consideration all existing thoughts and the points of view.
- It is possible to use the personnel in quality of trend spotters for to be well informed about new ideas
- For a practical estimation of quality of work of sellers and advisers a quality monitoring, as «the latent buyer» or «shopping by phone», is used.
- Incremental innovations for services are the perspective phenomenon for small retail
- «More often the buyers doesn’t know what they wants, until someone will not offer it» Business should define – what is necessary for the buyer&client today and to guess - what for clients will be necessary tomorrow
- It is necessary to analyze, generate and make use of experience of other successful companies for satisfaction of today's requirements of clients
- We know that price, quality, availability, service can be copied by competitors. But it is impossible to copy corporate culture and a bright brand, even from very small company.
- Seller always must to be ready to show the goods, its quality and freshness. Quality and freshness of your goods and your business ideas should be the truth.
- Economists of Stanford University have come to conclusion, that «the important factor of recession of an economic conjuncture, except deficiency of credit resources, is “uncertainty in economy “ In their opinion, this indicator is panic display. «Uncertainty in economy» isn’t supported by a personal damage and is a negative consequence of rough discussions in mass-media. Thus leaves, that turning of activity of the enterprises in the field of private retail in Ukraine in many cases groundlessly, if the difficult financial position or cardinal change of services conditions doesn’t take place.
- In my opinion, in connection with a situation in the world, the characteristic and value of the successful company have changed: When your company is as much as possible transparent (transparency) and it became new value in new time. Today respect the companies which openly talk both about their strengths and about weaknesses. «To work effectively» today isn’t anymore by the basic criterion of success. It is important to seize mind and adherence of people which work in the company both which buy the goods and services. Only it provides stable growth of the company (sustainability). Sustainability is a new value of new time. One more value is responsibility and conformity to public morals. We would like to regulate our activity norms and standards which already are in the market today? Or we would like to be proactive and to advance competitors even if we have already reached standards? Figuratively speaking, we wish «to quarrel because of gas problems today or we wish to create new power branch and to develop alternative power for tomorrow»?
- In a present uneasy situation money should become by the award for the received knowledge and the gained skills. This way from money to ideas, to deep understanding and belief can become chance and serious evolution of the Ukrainian business from a post communistic system to open world. The Client, Team, Professionalism, Responsibility should become the basic values of business in Ukraine today.
- Three persons worked, they did the same work. But when their have been asked what they do, answers were a different. One has said: "I crush stone", Other has said: "I make money for life by myself ", The third has answered: "I build a Temple“. I wish to all of us to build a Temple of Our Life
- Thanks a lot for your attention