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Local commerce : changing trades

After a period of decline related to the development of large and medium volume distribution outlets, local businesses are once again on the up. While there is still a high level of competition from the large volume distribution stores, local commerce must also take into account changing consumer habits. In order to provide a more suitable service, local commerce is innovating and the different trades are changing considerably.

The success of local shops cannot be achieved by simply adopting traditional sales methods; it requires a total renewal of existing concepts, redefining the concept of local commerce in the long term. The consumer wants to personalise his choice while feeling reassured and safe. Moreover, he shows great expertise in his search for the product-service, giving priority to price, quality, choice, service, pleasure, conviviality, ease of purchase, etc. depending on the case. By emphasising his natural advantages (segmented and personalised offer, adaptation to the clientele, conviviality, trust, a different type of time management, etc.), a retail trader can provide the right solution, as long as he has a strong and attractive identity. He must be familiar with his clientele in order to be able to define their needs, choose a definite position and develop it coherently with regard to format, layout, range, quality, price, presentation, services, communication, etc.

Complementarity and quality

More and more local shops are adding activities to their basic trade. This diversification often takes the form of an expansion of the range of products desired by the consumer. Attentive to changing habits, the retail trader endeavours to adapt to new consumer purchasing trends. The consumer’s expectations have changed and proximity, quality and conviviality are now important factors when choosing where to buy products. Consumers are more likely to visit several shops and, while he would go to two shops on average in 1987, he now goes to three or even four. As a result, the trader must emphasise the quality of his products and services, and sometimes even the price.

For the retail trader, expanding his range presupposes that the products sold are original and of good quality. This is an important concept when introducing new products, as the consumer expects the products to be of the same quality. If a fruiterer installs a cheese counter, the quality of the cheese must live up to that of the fruits. The trader is bound by the trust placed in him by his customers.

Product expertise and valorisation

A form of innovation, an expansion of the range is part of a strategy of shop “staging” intended to surprise the customer and encourage him to come back. It must not, for all that, detract from the advantages of the local shop: speed of service and competence. Product complementarity is a customer service and must not harm the neighbouring trader by head-on competition. Moreover, it means that the trader must be very familiar with the new products he introduces. A retail cheesemaker, butcher-pork butcher or fruiterer who develops a selection of wines must be sure that he has the necessary skills obtained through suitable training. This multi-disciplinarity is becoming more and more widespread in local commerce, resulting in major changes in the way a trader works. These additional activities account for between 10 and 20% of the global activity of the trader, sometimes rising as high as 40 or 50%.

In the case of butchers (19,000 firms of which 40% are traditional butchers, 40% are butchers-pork butchers and 20% are butchers-pork butchers-caterers), approximately 37% of the global turnover comes from non-traditional sales (10.7% poultry, 2.3% offal, 13% delicatessen products, 3.7% conserves and 4.6% miscellaneous). These products represent genuine value added. They must correspond to a real need when supply is non-existent or insufficient. With numerous quality products, the Marché de Rungis provides a perfect response to the demand of traders who wish to diversify the products they sell.

Innovate to seduce

In order to define a winning strategy when managing a local commerce, it is essential to know your strengths (speed of service, quality and personalised welcome, knowledge and quality of products, informed advice, service both during and after the sale, etc.) and weaknesses (limited ranges, high price). It is also important to attract new customers by innovating and evolving within your specific trade.
Hence the qualitative specialist (for example in fruit and vegetables) will offer a wide range of specific products and services in attractive premises: original ready-to-use prepared on site (4th range) as well as snacks, baskets of fruit, loyalty cards, delivery, telephone orders, tasting, etc. The multi-specialist (minimum 600 m2) will bring together several fresh product departments (meat-based products, dairy products, etc.) by combing counter and self-service sales.
Innovation is also possible by belonging to or creating small efficient networks at either a national or regional level. In-store events with POS advertising and personalised bags also enable a trader to attract customers and make himself known. It is even possible to add a pedagogical note by preparing recipes using seasonal products, accompanied by advice on how to prepare them and health information.

Installing kiosks (with mini baskets of fruit and vegetables) also enables a trader to expand his range, improve the selection and presentation of products and increase sales. The use of new product presentation modules is also a source of innovation. In this respect, collaboration with specialist designers will make all the difference.
Selling to companies or restaurateurs in your specific catchment area is also a good means of innovating with a view to increasing your turnover.
Within the context of his activity, the trader would also do well to obtain information from trader groups (following the example of Great-Britain) with a view to canvassing new customers and anticipating their needs.

Evolution and technology...

Another source of innovation and evolution is the expansion of activities, following the example of a certain number of florists who have become creators, decorators and stylists. The same phenomenon can be observed with certain retail fruiterers, who have turned to decorating for films, buffets, weddings and events (fruit and vegetable sculptures and cascades, etc.).
An essential aspect, innovation was the theme of a major competition held in March 2007 entitled “Les défis de l’Innovation” (innovation challenge) open to retail fruiterers who are members of the UNFD. The aim of this operation was to reward innovative ideas and to improve the accessibility of their products vis-à-vis the consumer.
The three winners distinguished themselves with highly innovative concepts:
- First (Florence Carayon) rides the wave of on-line fruit and vegetable purchases with her web site, accompanied by services (on-line orders, delivery, table decoration, recipes, etc.);

- Second (Laurence Perret) has developed a sort of shop where the POS is replaced by an Internet site (delivery to place of work with membership and regular promotional events, etc.);
- Third (Carole Etienne) provides recipes, advice, ideas and information in her shop as well as organising book exhibitions of works, signed by the authors, concerning fruit and vegetables.

Still marginal (840,000 very small firms not yet connected!), digital technology is beginning to appear in local commerce and in the near future, new technologies (Internet, Intranet, e-mailing, payment terminals, RFID labels, self-service multimedia terminals, IP telephony, digital video surveillance, etc.) will have transformed the physiognomy of our traditional local shops. Moreover, e-commerce (3% of retail trade in 2006) is now an integral part of French consumer habits and its potential is limitless. The trades of local commerce are without doubt in transition. (source: Insee, Ctifl, UNFD, Sofres, FNDE, Ofival…).
Francis Duriez

Pro reviews

Christian Le Lann
(President of the “Chambre de Métiers et de l’Artisanat de Paris”, master butcher and cheesemaker)

“Many Parisian craftsmen-traders are obliged to complement or expand their range of products to compensate for falling turnover or the commercial desertification of certain districts of Paris and its suburbs. Nevertheless, they must comply with the legal and regulatory framework governing the commercial lease and with the food safety and hygiene rules, and I would like to salute the work and support of the CCIP and the traders’ associations in this field. Moreover, the consumer is more and more inclined to buy his products in a single place. It’s a major advantage for a craftsman-trader to offer a range of select products which are of better quality and more original, unlike large/medium volume distribution… Innovation is also possible through new technologies such as the Internet, new packaging, events, customer services, etc. Innovation and evolution are key factors of development which nevertheless require well-defined coordination and complementarity”.

Antoine Boucomont
(Managing Director of the company Le Delas - Rungis)

“For some time now, our clientele has increased considerably and, rather than simply contenting themselves with butchers and pork butchers, they now turn to all trades in the food industry. From fishmongers to covered markets, from cheesemakers to restaurateurs, from bakers to management canteens, all of these professionals come to us because they know that they will find the product they are looking for. We have expanded our range of products considerably and there are now more than 12,000 references. This de-specialisation, or rather this expansion of the range, has become necessary because local shops, which represent 65% of our clientele, are looking more and more to innovate in terms of products, services and technologies. This allows them to offer the most comprehensive service and the product best suited to the clientele”.

Jean-Luc Dejean
(Director of the CIFCA)

“Through the filter of our inter-professional apprentice training centre for the food industry, we clearly see that the structures of commercial companies are less and less compartmentalised. Today, everything is interrelated and this is illustrated by our professional qualification certificates. For example, a cheesemaker will recruit an apprentice with a view to training him primarily in selling wine. This trend is gaining ground and both company managers and trainers take this phenomenon into account. Diversification is a factor of innovation and now ensures the same level of quality across products. The frontiers between professions are diminishing as it is becoming necessary, in light of the market and large volume distribution, as well as the changing face of the clientele. Local shops are innovating and evolving in several directions and adapting to a new type of clientele”.

Pierrot Da Costa
(Retail fruiterer - Paris)

“Nowadays, you have to sell different products to attract and keep customers and to offer the service they desire. In one of our stores, we have installed a cheese counter and a wine cellar. Together with dieticians from Interfel, my wife has also initiated fruit and vegetable tasting in school to give children an early taste for these products, making them the next generation of informed customers. There are competitions and games to make it more fun and the children can win prizes (baskets of fruit, etc.). It’s a way of making ourselves known, of attracting a clientele and increasing turnover. The same concept exists for adults. Innovation and a broader range of products are necessary to distinguish yourself and protect business with regard to the competition”.

Florence Hardy
(Managing Director of the company Medelys - Quality Import - Rungis)

“More and more, traders are developing extended product ranges as there is a real demand from the clientele. These additions may be occasional or take the form of events. This phenomenon can be observed in top-end stores where product complementarity ensures the same level of quality. They want to distinguish themselves positively in relation to the competition with a view to providing their clientele with a range of products of the same quality. This phenomenon is gaining ground and traders are looking for advice and pre-established ranges corresponding to current trends, which are primarily initiated by restaurants and cooking fads. It’s good for the consumers and for our trades”.

Luc Deschamps
(Florist-decorator - Paris)

“I am a florist, stylist, dealer in second-hand objects and event decorator rolled into one, working in sectors such as haute couture, communions, weddings and birthdays, restaurants, trade fairs, festivals, receptions, etc. – wherever there is a need for decoration. It is important to have a shop which is a showcase for your work. It is an expansion of activity which is becoming more and more popular, made necessary by a growing demand. It is a new trend which I helped to launch and which allows you distinguish yourself. We see more and more young florists opening shops and doing another activity as well. Flowers are a communication medium in their own right”.

Eric Lefebvre
(Cheesemaker-dairyman - Paris)

“MOF 2004 (best worker in France), vice-president of the National Federation of Cheesemakers, I represent the 5th generation of cheesemakers. In my shop, I sell only dairy products and I never considered broadening my commercial horizons until I discovered Natoora. It was then that I decided to sell my cheese on-line. Today, it represents between 10 and 15% of my turnover. For twelve years, I have also organised cheese buffets, bread-cheese-and-wine tasting evenings and, as an extra, I sell some cooked meats and delicatessen products. I am a staunch supporter of innovation while sticking with the primary product, but I am not in favour of expanding the range”.

Philippe Vignon
(Pork butcher-caterer, greengrocer, cellarman - Paris)

“Born into a family of pork butchers-caterers, I took over the family business a few decades ago. With the gradual disappearance of retail food traders in the district, we have been obliged to diversify to satisfy the changing demand of our clientele. Diversification is a good thing in the retail trade, but it means constantly adapting your work tools. My activity as a pork butcher accounts for 30% of my work, catering 40%, grocery, cheese and wine 30%. The extra products are increasingly important up due to the demand, and it is essential for the retail trade to be innovative and branch out into other products. I am a fervent supporter of innovation and I have chosen my trade accordingly”.

Pascal Buffard
(Butcher-pork butcher-caterer)

“From being a butcher pure and simple, we have become a butcher-pork butcher-caterer. We have about twenty sorts of wine, fruit juice and sodas. We offer about thirty different dairy products: milk, cheese, yoghurts, etc. Drinks and dairy products account for between 10% and 15% of our activity. That means that there is a real demand. The customer likes to have a certain ease of purchasing and a wide choice, so we are obliged to diversify; if not, we become marginalised. Nevertheless, we are first and foremost a specialist butcher”.

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