A sneak peak at different trading practices

With the advent of technology and transformation in the world view, the way humans practice trade has undergone a massive change. Today, you don’t need to go anywhere, instead, you can shop online, choose the product or service you want, and pay your bill electronically. Isn’t it very convenient for the users? Here is how the different forms of trade have changed:

General Trade

General Trade, also referred to as basic retailing, is a network wherein direct customers are pitched to buy a particular product or service. It establishes an interpersonal relationship between a buyer and seller. The practice involves small scale businesses targeting the consumers who purchase day to day items in small quantities. Some of its exclusive features are short lead time, high demand for regular orders, differing rates, and more. General Trade accounts for 80% share of the overall economy for developing countries. General Trade is usually executed by shop owners, retailers, street stores, and more. A closer look at it helps them understand that the model of general trade is similar to traditional trading strategies. The advancement in technology and the increasing trend of e-commerce have led to a major issue encountered by dealers, retailers, and wholesalers. However, start-ups and large organisations are working to solve the problems of General Trade and turning it into a huge success.

Modern Trade

There has been an increase in the market share of modern trade with easy availability of FMCG products across large stores. Modern Trade involves an organised retail set-up and distribution in logistics management. With diverse features like an extensive product range, different brands, organized distribution, and high reliability, modern trade has gathered immense popularity. It is usually undertaken via hypermarkets, supermarkets, mini-markets, and more. The stores are built with stellar infrastructure, appealing interiors, organised product range, and top-notch facilities. What sets this apart from general trade is that there is negligible customer interaction. The customers directly choose the products and proceed to payment.

Online Trade

Online media is a powerful tool through which customers are directly approached to buy a particular product or service. This practice of getting day to day stuff via online mode is a part of online trade. The pandemic has accentuated the process of easy availability of products with just a single tap. From a needle to a bulky furniture item, everything is made accessible with multiple payment modes, lucrative offers, and timely delivery. Applications like Flipkart, Amazon, Myntra, Ajio, etc. are all a part of the growing online dimension.

(Inputs by Rohit Tekriwal, Director, Shree Rani Sati Group)