Retail Business Model

A retailers business model describes how the company generates value for its customers and how it captures market value. In a market characterized by constant shifts, rising customer expectations, and fierce competition, innovations in business models are becoming increasingly important for establishing a sustainable competitive advantage. One type of retail business model is B2C, or businesstoconsumer, in which a company sells its final product directly to consumers. To achieve these results, a business model centered primarily on the local level is required, which entails higher margins but also higher costs and distribution risks.