Modern trade in developing economies

Modern trade is reshaping the retail landscape by offering consumers organized shopping experiences through supermarkets, hypermarkets, and e-commerce platforms. It’s characterized by efficient supply chains, standardized operations, and the use of technology for data-driven decision-making.

Key Differences between modern and traditional trade:

1. Operational Model:

Modern trade operates on large-scale, streamlined processes, whereas traditional trade relies on small, independent stores with less structured supply chains. However, the traditional trade cannot be ignored due to its level of contribution to the economy and overall general population of a country

2. Consumer Experience:

Modern outlets offer consistent pricing, promotions, and loyalty programs, providing a reliable shopping experience and large amounts of data too.

3. Technology and Data:

Modern retailers use advanced systems like POS and CRM tools, enabling better data collection and customer insights to make decisions.

4. Supply Chain:

Modern trade maintains close manufacturer relationships, ensuring smoother logistics compared to traditional trade’s reliance on third-party distributors.

Data Accessibility in modern trade

Data is readily available in modern trade due to automated systems and integrated networks. Tools like POS systems and loyalty programs provide valuable insights into sales and consumer behaviour, helping businesses make informed decisions. It is still important and required to understand shoppers and consumer decision making processes through good research techniques.

Growth of modern trade

Modern trade is expanding rapidly in developing economies, driven by:

Rising Middle Class

Consumers seek convenience and quality products.

Urbanization

Growth in urban centres supports modern retail infrastructure.

Foreign Investment

Global retail chains bring expertise and technology to local markets.

E-commerce

Platforms to enable online shopping with door-to-door service is growing exponentially

So what now?

Frontline Research Group helps businesses navigate this expanding landscape by providing tailored insights into the modern trade eco-system. Our Retail Metrics Data and Customised Solutions can unlock opportunities in these growing markets. From understanding the effect that modern trade has on smaller traders to understanding how shopper and consumer experience shopping to the effect of promotions, Frontline Research Group can help.

For more information, explore our latest blog post.