Digital Business insights: A little row of shops

THERE IS a small row of shops on the way to the nearby shopping centre in an awkward position by the side of the main road. There is limited parking and it is hard for cars to stop easily, unless they already know what's there.

 

I have watched over the years as new tenants have tried their luck with the location.

Most have failed. 

The remainder have established themselves with customers who visit regardless of the awkward position.

There is an air conditioning and solar retailer that has now relocated to Darra, so this shop is empty.

A small travel centre is right next door with three desks to pick up passing trade. It surprises me that it is still there, but it is.

Then a fish and chip shop, that has changed hands a few times.

Each new owner brings a different approach to quality, content, and charm or otherwise.

Next, a hair and beauty supply wholesaler.

And next door to that, is a formal dress hire shop. It has been there a long time.

Then a teaching centre for Maths and English.

A football shop with collectibles for football enthusiasts.

Another formal wear hire shop. Two in the same row.

An Asian grocery store. And a computer repair shop, "break fix and box drop" as they are known in the industry. The owner looks after the problems of the local residents and small businesses in the area and probably picks up a bit of passing trade.

What do they all have in common? They all specialise in something. They have been there long enough that occasional customers expect to find them when they next visit. And they do.

None of them are going to be the next Woolworths or Myers.

One or two are part of a chain, and most are making enough money to pay the mortgage. Maybe more.

Do any of them have a website?

They all have a website except the Asian grocer. 9 out of 10.

Will they survive the digital revolution? Probably.

They don't have the same overheads as the larger retailers. They are not in a prime position. They don't have the same competitors from anywhere as the mid range commodity retailers.

There is a lot of passing traffic, though little in the row of shops to attract attention, beyond the sign above the door.

But specialisation has given them a niche to hide in. And the pickings are relatively thin and don't justify full on competition.

There are little rows of shops across the nation. They all face different challenges depending on what they sell, where they are, and the volume of local traffic.

But between the big guys - Woolworths and Coles, and the little rows of shops lies the real danger zone.

Territory that is hard to defend successfully. Where the business model has to be reviewed and reviewed again.

Territory where value can be leveraged by anybody, anywhere getting the business model exactly right - whether pure digital and/or bricks and mortar.

And territory where the effort of trying and succeeding might just deliver enormous return on investment. So you can bet that somebody is trying right now.

Welcome to the danger zone.

 - John Sheridan, September, 2013.

John Sheridan is CEO of Digital Business insights, an organisation based in Brisbane, Australia, which focuses on helping organisations and communities adapt to, and flourish in, the new digital world. He is the author of Connecting the Dots and getting more out of the digital revolution. Digital Business insights has been researching and analysing the digital revolution for more than 12 years and has surveyed more than 50,000 businesses, conducting in-depth case study analysis on more than 350 organisations and digital entrepreneurs.

www.db-insights.com

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