21.0 INTRODUCTION
Distributive trade refers to the process of moving goods from producers to consumers. It encompasses all activities involved in the distribution of goods and services.
21.1 CHANNELS OF DISTRIBUTION OF TRADE
- Direct Channel: Involves selling directly from the producer to the consumer without intermediaries.
- Indirect Channel: Involves one or more intermediaries (wholesalers, retailers) between the producer and the consumer.
21.2 TYPES OF INTERMEDIARIES IN THE DISTRIBUTION OF TRADE
- Wholesalers: Purchase goods in bulk from producers and sell them in smaller quantities to retailers.
FUNCTIONS OF WHOLESALERS
- Bulk Purchasing: Buy large quantities from manufacturers.
- Breaking Bulk: Divide goods into smaller lots for retailers.
- Storage: Provide storage facilities for inventory.
- Transportation: Handle logistics of moving goods.
- Market Information: Offer insights on consumer trends.
- Retailers: Sell goods directly to the end consumers.
FUNCTIONS OF RETAILERS
- Direct Selling: Sell goods directly to consumers.
- Customer Service: Assist customers with product information.
- Product Display: Create attractive displays to promote products.
- Credit Facilities: Provide credit options to consumers.
TYPES OF RETAIL TRADE
- Department Stores: Wide variety of goods organized into departments.
- Supermarkets: Large self-service stores for food and household items.
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