Drogheri: mastering new trade formats
If you are looking for a free niche for the retail business, then consider the idea of a store in the format of a shogger. You can start with a capital of 600 thousand rubles, and at the output to make a profit of 200 thousand rubles.
Drogheri is a new trade format in Russia. These stores have long become popular in Europe, and we are just starting to develop. According to research firm Nielsen, today, Drohery stores occupy 20% of the European retail market.
What is Drohery?
Drogheri are stores specializing in the sale of goods that do not need special storage conditions. The range includes household chemicals, cosmetics, perfumes, some drugs that are dispensed without a doctor’s prescription. Shops of this format are focused on products with a high frequency of sale.
The main signs of Drogeries are:
low price product;
the absence of perishable goods;
quickly turned goods;
sale of goods familiar to customers through advertising. There is practically no advertising in the store itself;
walking distance. Target audience – people living 5-7 minutes walk to the store;
the area is 100-150 sq.m. This is a kind of standard for this format;
necessarily shop in the format of self-service.
Now you can distinguish Drohery from the usual hardware store.
The main advantages of this format is that, with a small margin on goods, the drogeries have an impressive turnover of 1 sq.m. sales area. It is cheaper and simpler to keep a store in the format of drogeries, and you can earn on it no less. This niche in Russia is quite free. Drogers open in large cities, but in many people still haven’t heard anything about it. Having occupied this niche in time, you will be able to create a stable business and earn decent money.
So let’s figure out how to open a store in the format of Droheri.
The first drogeries appeared in Germany. This happened in the 1970s in the wake of the development of supermarkets and discounters with groceries. Then the German businessmen made a bid for small shops with fast-selling goods, which do not need special storage conditions. In Europe, the idea has taken root and is being actively implemented so far. And this is despite the fact that the range of Droheri is in many ways similar to ordinary supermarkets. What is the secret? Sometimes Droheri can offer a better price, but more often it’s all about the availability of goods. It is unlikely that someone will go for one cleaning agent across the city to get to the supermarket. It is more convenient for a person to go to the store near the house. Therefore, the main advantage of the format Drogeri is a favorable location. 80% of the turnover of such stores are purchases of regular customers who live nearby.
To date, there are more than 9 thousand Droheries in Germany. For comparison, in 2017, 96 stores of this format were recorded in Russia. As you can see, the market potential is quite large. According to analysts, in 2017, the shortage of Droheri stores in our country is about 60%.
That is, competition in the segment is small, since the format is not so common. Drogers have to compete with stores of other formats – supermarkets, hypermarkets, etc. And the internal competition is practically absent.
Why is the format of Drogeri so in demand in Europe? Partly the answers to this question are given in the table, where the advantages of the business are presented. But, despite the free niche and rich experience of foreign entrepreneurs, Russian operators face many problems, developing this business format, negative characteristics indicate.
Drogheri can easily win a buyer, because such shops are within walking distance and offer low prices. Due to what is saving? First, Drogeri products do not need special storage conditions. Secondly, transportation is quite simple and does not occur as often as food, the range includes those products that have a long or no shelf life. So you can sell goods at least for a month, at least for a year. No delay – no loss. The risk of material loss in this case is quite low. Thirdly, a simple set of equipment is needed for the equipment of such a store: various racks, display stands. No complicated equipment and expensive equipment. Furniture can be easily taken “from hands”, which further reduces costs.