Specialization is the term which is usually used for companies or jobs but in case of marketing similar concept is there where there are specialty stores which sell products or service of particular use only and do not keep other products. In simple words just like stockbroker will talk about only stocks and if you ask him about sports-related stuff or history-related stuff then he will be clueless in the same way specialty stores specializes in selling one or two products and they keep only those products only in their stores. In order to get a better understanding about this term, one should look at some of the advantages and disadvantages of specialty store –
Advantages of Specialty Store
Complete Knowledge
The first and foremost advantage of specialty store is that people running the store as well as employees working in the store have extensive knowledge regarding the product or service which they are offering through their store and thus as a consumer you can be rest assured that all your doubts and questions regarding the product or service which you want to buy will be answered on the spot by the employees of the specialty store. In simple words just like in the case of financial markets if you want to buy equity shares then you cannot rely on the opinion of commodity trader in the same way one cannot buy a product on the opinion of a person who has partial knowledge about the product which is the case with many sales representative working in departmental stores.
No Unnecessary Expense
In case of specialty store chance of consumer overspending or doing unnecessary buying is less because unlike departmental store where there are plenty of things and consumer is bound to get attracted towards those things and may end up buying unnecessary things. Hence for example, if you want to buy a football for your kid and you take your kid with you to a departmental store or supermarket and there he or she sees PlayStation then he will say that he wants to buy PlayStation and not football resulting in unnecessary expense for the parents which will not be the case if you take the kid to specialty store dealing only in sports-related items.
Less Space Requirement
In the case of specialty store since limited products are displayed and offered for sale and thus it requires less space as opposed to a departmental store where hundreds of products are required to be kept which requires a lot of space which is the reason why not many people can afford to have departmental store due to higher rent payments in case of a rented property.
Disadvantages of Specialty Store
Lack of Choices
The biggest disadvantage of specialty stores is the lack of choice available to the consumer because in specialty stores one does not get a variety of choices which is the case with departmental stores. Hence for example, if you are a sports equipment lover and go to a sports specialty center with your whole family then apart from you every other member of the family will be bored as there will be only sports-related item present in the store which is not the case with a departmental store where it has something for everyone.
Limited Customers
In the case of specialty stores, only those consumers will come who want exclusivity which in a way limits the reach of these stores because if the product is for sale in a departmental store that has plenty of consumers then chances of it being noticed and bought are more due to it grabbing more eyeballs as opposed to a specialty store where not many people will visit and know about the products which the specialty store offers.
No Diversification
Specialty stores operate on the concept that a certain percentage of consumers wants exclusive service and premium quality but it does not take into account the possibility of change in consumer taste and change in technology resulting in the possibility of product that specialty store is offering being outdated which is not the case with departmental stores where they offer hundreds of products and if 1 or 2 products get outdated then it does not have any effect on them due to them being diversified with respect to products which they offer. Hence for example with a change in technology demand for DVD players or Apple iPod vanished and if someone was offering these products through their specialty store then they would have gone out of business.
As one can see from the above that specialty store has pros, as well as cons and that, is the reason why anyone thinking of opening a specialty store should carefully read the above points and then only should take the decision regarding whether to go ahead with opening specialty store or look for some other business opportunity.