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Which retail shops are run by the weaker sections? Do you think they are capable to face competition from large scale retail shops? How do they exist then?

Answer:

Ans.     Weaker sections of society run retail shops in following ways:

1. Hawkers and Peddlers: The hawkers carry their goods in a wheeled vehicle while the peddlers carry the goods on their heads or backs.

2. Market Traders: These retailers open their shops at different places on fixed days. Street Traders or Pavement Vendors: These retailers display their goods at busy street corners or pavements.

3. Street Traders or Pavement Vendors: These retailers display their goods at busy street corners or pavements.

4. Cheap Jacks: These retailers generally hire a small shop in a residential colony for a temporary period.

No, they are not capable to face competition from large scale retailers. In fact there I do not have to face competition from large scale retailers because their clientele is different from them. Poor and lower middle class people buy from small retail shops while upper middle class and rich people buy from large scale retail shops. Therefore, they can manage to exist due to following advantages over large scale retail shops.

(a) A small scale retailer himself looks after his business. He is not required to employ managers or to spend on advertising, etc. Therefore, he can sell goods at lower prices.

(b) A small scale retailer can take quick decisions. He is not required to consult others.

(c) A small scale retailer can easily adjust his stocks according to the changing needs and fashions of his customers.

(d) A small scale retailer can more easily maintain secrecy of his business affairs.