What Is an Independent Store?

Independent stores are independent retailers that have only one retail store. Because the required capital is not much, some do not need to apply for a permit, and some apply for simple procedures, so it is easier for small retailers to enter the market, which will inevitably lead to greater competition.

Independent store

Independent stores are independent retailers that have only one retail store. Because the required capital is not much, some do not need to apply for a permit, and some apply for simple procedures, so it is easier for small retailers to enter the market, which will inevitably cause greater competition.

Chinese name

Independent store

Foreign name

independent store

Occupation

free-lancer

Idiom

Canteen

versus

In China, there are currently three main types of independent stores: individuals

Independent stores face various advantages and disadvantages in competition. Advantages are:

Flexibility. With only one store involved, independent retailers have great flexibility in choosing store locations and developing strategies.

Low investment. Since only one store is operated, the investment costs for leasing, fixed management in the store, staff and goods can be reduced.

Specialization. Many independent retailers can operate as an expert, and they can use their skills in a specific field.

Good image. Independent retail stores tend to easily form a friendly, individual image, creating an intimate atmosphere.

Yes

The main disadvantages of independent retailers are:

Limited bargaining power. Because it is only a small amount of purchase, there is not enough power to bargain with the supplier.

Due to the constraints of demand and financial resources, independent stores usually cannot establish economies of scale in purchasing and maintaining inventory. This means that shipping, ordering and inbound processing costs are high.

Independent shops are rarely equipped with modern tools, and are generally operated manually, with low efficiency and labor intensive.

Relying too much on the owner. In many cases, all decisions are made by the owner. When the owner is sick or on vacation, the continuity of the operation cannot be guaranteed.

Lack of financial resources and time required for planning.