Surviving Despite the Big Guys

This one is mainly for you retailers out there -- but the message applies to all businesses. Many shop owners dread hearing that a dominant retailer is invading their market -- either through proximity to their location or via online sales. Hardware stores dread the presence of Home Depot, booksellers worry about Amazon, grocers fret about Safeway (or whatever supermarket leads in your region).

Recently, the public radio station in my area was interviewing locals about the new Wal-Mart that was opening in a small but growing community. Of course, Wal-Mart wants to open there, because they don't have a store within many miles and figure the town will be eager to shop in one of their superstores. The local merchants who were least worried all were telling the same story -- differentiate your business by finding a profitable niche the big guys don't fill:

• A local jeweler called in to the show and made the point that if you want jewelry made in China, you could get it at Wal-Mart, but if you want jewelry made by artisans in their hometown, come see him. Wal-Mart can't do that. 
• A hardware store owner explained that you could get a dimmer switch at Wal-Mart or Home Depot, but if you wanted expert advise on how to install it, you'd go to his place because he gives his employees extra training so they can provide superior service to customers.

This week my local newspaper, The Oregonian, ran a feature on Powell's Books, a Portland business that bills itself as the largest independent bookstore in the world. I can believe it; the main store covers an entire city block. But owner Michael Powell, when asked about the major retailers' heavy discounting, says "Anytime someone gives a product away, there's going to be some impact. But popular best-sellers have never been our niche. That's more of the Costco phenomenon. We do more nonconventional fiction, and if they move into those, it could have some real impact...but so far it hasn't caused us to break out a sweat."

These business people are all surviving because they have found a niche that they can serve better than the big chains. What is your niche?

Comments

[Emile Marston]

I think good networking helps a lot, too, considering people almost know each other in small towns. Customer relations is an investment when this happens. Of course, there's also the assurance that you give quality products and services.