Understanding the complexities of Traditional Trade

There is a myriad of nuances that shape Traditional Trade and make it the polar opposite of Formal Trade.

Traders rely on localized knowledge and market insights to curate their product offerings, tailoring them to the unique preferences and tastes of their clientele. Customer loyalty is often built on personal relationships and trust, with repeat business driven by exceptional service and quality products.

Traditional Trade caters to consumers of all income levels and is popular with people from all economic backgrounds. This is due to the convenience of traditional trade outlets and because there is often a personal relationship with the stallholder. These outlet owners live in the communities they service.

Why sourcing data from traditional trade is complex

1. Informal Economy

Much of retail trade occurs within the informal economy, which often operates outside of formal regulatory frameworks. This makes it harder to track and quantify transactions.

2. Lack of Infrastructure

Many traditional retail markets lack basic infrastructure such as internet connectivity, electricity, and computerized record-keeping systems. Without these tools, collecting data becomes cumbersome.

3. Fragmentation

Many traditional retail markets lack basic infrastructure such as internet connectivity, electricity, and computerized record-keeping systems. Without these tools, collecting data becomes cumbersome.

4. Limited Resources

Government statistical agencies in many countries may lack the resources, both financial and human, to conduct comprehensive surveys or gather detailed data on traditional retail trade.

5. No Registered Address

Many retailers have no registered physical address as they operate in regions with no street names or street numbers.

6. Cash Transactions

Many transactions are in the form of cash and few records are kept of transactions.

Addressing these challenges requires an innovative approach to data collection and a specialised knowledge of traditional trade.

Frontline Research Group – Traditional Trade specialists

Frontline Research Group has been conducting retail census and retail audits in the Traditional Trade sector for three decades. We understand Developing Economies because we have literally walked the streets, driven the roads and hiked the bush and have geomapped over 5 million retail outlets.

We go well beyond the simple provision of data as we offer a host of analytical, insightful and management services too, which provide our customers with the opportunity to make effective tactical and strategic decisions.