Development Potential of Retail Chain of Consumer Cooperation Based on the Reverse Franchising Technology
Year: 2020
Type: conference-paper
Abstract: In accordance with the "Road map for the Consumer Cooperation System Development for 2017-2021," the main task of its effective functioning is creation of comfortable conditions for the retail trade improvement.The solution to the problem is in the implementation of effective forms of interaction with federal retail chains that contribute to survival and sustainable development; one of such forms is the reverse franchising technology.By compiling completed earlier theoretical developments, including the authors' ones, and basing on extensive practical experience, in particular domestic, the article systematizes the types of franchising according to various criteria and specifies the benefits obtained from using each of them; confirms effectiveness of the retail chains functioning while using reverse franchising technology; proves the necessity and the possibility (by establishing the conformity of the stores' material and technical resources with the franchisor's requirements) of successful application of this technology by organizations of consumer cooperation.Particular attention is paid to the study of performance results of the retail chain COOP-Pyaterochka, established under an agreement with the X5 Retail Group, which allowed the authors to specify the benefits of using reverse franchising by organizations of consumer cooperation, which include improving store design and assortment, increasing customer loyalty, reducing costs, rising qualification level of the staff, improving efficiency of logistics.The study resulted in justification of a methodological approach to assessing the effectiveness of using reverse franchising technology by organizations of consumer cooperation based on the use of an indicator system of the investment project effectiveness.
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W3014200529