Nearly everyone in business wants to make a lot of money. How we manage distribution channels directly impacts our ability to sell consumer goods. Therefore, every company must be able to choose the appropriate quantity and timing of orders to satisfy customer needs without incurring significant costs.
Thanks to distribution channels, producers can market their products much more efficiently and with greater assurance that consumers will receive them safely. The company will be significantly aided in distributing its products through a well-managed distribution channel.
A distribution channel is route producers take to move goods while transferring ownership from producers to consumers, directly or indirectly. Producers can conduct marketing research through distribution channels to learn different facts about customers, rivals, and other forces in the potential marketing environment.
Markets and shops are locations where buyers and sellers can interact face-to-face. They are also a part of the final distribution channel and frequently come into contact with customers.
Contrary to the current situation, with many modern markets like supermarkets, minimarkets, and hypermarkets, every producer must meet specific requirements to enter the product. In the past, before the existence of the modern market, circulating products would be easy to enter the market, and the conditions for entering these products also tended to be easy. Therefore, general trade and modern trade are the two terms that are currently used in the distribution.
Most trade deals with traditional markets (such as little stalls). Distributors or (intermediaries) conduct sales in this manner. For instance, locally oriented businesses are typically owned by individuals. In Indonesia, the typical consumer frequently visits general trade to buy food and other urgent household necessities.
On the other hand, modern trade focuses on managing contemporary markets, including supermarkets, minimarkets, and hypermarkets, whose operations are more organized than general trade. Modern business is typically visited for more planned monthly shopping because the location is more prominent and tends to be farther from the housing.
General Trade
Most goods offered by general trade are easily transportable and come in food, clothing, and other goods. Compared to general trade vs modern trade, general trade expands with life and socio-cultural interaction rather than just being a place to buy and sell things. Because they are constructed close to residential areas, general trade or traditional markets benefit from being strategically located. Another indication that general trade is one of the best for boosting the economy of the populace is the variety of goods sold. At the same time, the flaws in general commerce are similar to filthy, shabby, and less frequent in their location. Even though there are still a lot of counterfeit goods in use, the packaging could be better, and the quality of the product is frequently not guaranteed.
Modern Trade.
According to the management, which is done in a contemporary manner and prioritizes customer service for the convenience of shoppers, leadership, on the one hand, has significant capital and is furnished with a precise price tag. Modern trade, in comparison to general trade vs modern trade, has several benefits from the customer's perspective, aside from the non-negotiable price point.
These benefits include a tidy, inviting setting and extended and scheduled operating hours. Various payment methods, including cash, debit, credit, and gift cards, are also available to provide the best level of service. There is no process for bargaining, which is a disadvantage of contemporary trade. There is no social interaction while shopping because it is done alone.
Which distribution channel is better, modern trade or general trade?
Determining the distribution channel and selecting the appropriate type between general and modern trade is crucial for today's producers.
When choosing a distribution channel, there are many factors to consider, including the budget, competitors, product conditions, target market, and available resources. Currently, small and micro traders in traditional markets (general trade) are beginning to express concern due to modern business growth in several cities.
General trade managers are believed to be turned off by modern market penetration, which involves expanding distribution networks to the sub-district level as the primary channel for the small and micro economy's distribution. Additionally, modern trade's service, appearance, completeness, and affordability are benefits.
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