Modern Trade Vs. General Trade- How do you differentiate?

Modern Trade Vs. General Trade Comparison

Definition and Overview of Modern Trade and General Trade

Modern Trade Caters to Mostly Middle to High Income Consumers whereas General Trade to Low to Middle

Modern Trade is Mostly Managed by Distributors Whereas General Trade is Managed By Multiple Intermediaries 

Modern Trade Provides Convenience to Urban Consumers 

Comparison Between Modern Trade Vs. General Trade

ParameterModern TradeGeneral Trade
Market Size and ReachLarge retail formats such as supermarkets, hypermarkets, and department stores that cater to a wider consumer base across urban areas.Small retailers such as local convenience stores, mom-and-pop shops, and traditional street markets serving a limited population in rural or semi-urban areas.
Channel StructureDirect relationship between manufacturers/suppliers and retailers through centralized buying offices or distribution centers, allowing for efficient supply chain management and easier access to sales performance data.Involves multiple intermediaries such as wholesalers or distributors before reaching the end consumer, resulting in longer lead times for product delivery and less control over pricing by manufacturers.
Customer DemographicsCaters to more affluent consumers with higher purchasing power.Serves a broader range of customers from all income levels, including those with lower disposable incomes.
Product AssortmentOffers a wide range of products from various brands under one roof, providing a convenient one-stop shopping experience.Limited shelf space resulting in fewer product options available to customers.
Growth PotentialSignificant growth potential due to changing consumer preferences towards organized retail formats like hypermarkets or e-commerce platforms.Still the dominant form of trade in developing countries with large untapped market potential.
Comparison between Modern Trade Vs. General Trade

Breeze Has Solutions For Both Types of Trade

1. Understanding the Target Market

2. Training and Development

3. Leveraging AI and Automation

4. Monitoring Performance Metrics

Wrapping Up

Payel is a marketing executive and writer for Breeze. With 6 years of experience in content marketing, copywriting, and content strategizing, she is now deeply involved in understanding the SaaS market and building communication for Breeze that resonates in the industry. Beyond content and communication, Payel is a movie buff who enjoys exploring different genres in various languages. From war movies to spine-chilling thrillers, Payel loves them all.

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