Modern Market: Definition, Characteristics, Strengths, and Weaknesses

Modern market is one type of market where the products can be sold at the right price so that there will be no bargaining activity on the cost of goods between the seller and the buyer.

Various products that are traded in this market are products that have been tested for quality, and the prices are priced accordingly. Usually, this modern market is located in an urban or suburban area with a clean and comfortable environment.

In this market, many products are sold, ranging from clothing and food needs to board. Some examples of modern markets around us are Market Department Store, Ramamart, Hmart, Carrefour, Hero, Alfamart, Usmaret, etc.

The Characteristics of the Modern Market

As buyers, we can easily recognize a modern market’s existence based on its characteristics. Some of these characteristics are:

1. There is no process of bargaining the price to buy an item

2. The price of each item is listed, and a kind of barcode will be given to identify it.

3. many types of goods are sold with the best quality.

4. This modern market is usually located in one building where the services are carried out independently.

5. This market condition will usually maintain cleanliness and comfort by being equipped with air conditioning and janitors.

6. Generally, market conditions are cleaner and more comfortable because they are equipped with Air Conditioners and cleaners.

7. There is government intervention in economic activities in this market.

8. Product payment is made at the cashier.

9. The services provided in this market can satisfy its consumers.

Advantages and Disadvantages of the Modern Market

1. Advantages of the Modern Market

– Selling Quality Products

Every product traded in this market must be able to pass specific quality standards to provide good quality. Each merchant will also generally offer discounts for some of their quality goods to continue selling.

– Clean and Comfortable Market Conditions

Environmental cleanliness in this market is mandatory because it closely relates to convenience and consumer satisfaction with shopping. In fulfilling this, generally, this market will provide cleaners and air conditioners.

– Opening Jobs

This market will require a lot of employees to serve every customer, such as cleaners, security, cashiers, customer service, etc. This, of course, will open up many job opportunities for the people living around the market area.

– Increase GDP

As we all know, gross domestic product or GDP is the total value of the total production of goods and services in a country at a particular time. With the presence of this modern market, the country’s economy will also be helped.

2. Disadvantages of Modern Markets

– Consumers Switch to Modern Markets

With the several advantages in this market, it will undoubtedly attract the attention of many consumers, so many traditional market consumers switch to modern needs and automatically reduce buyers in traditional markets.

– There is an Economic Gap

The shift of existing consumers from traditional markets to modern markets will reduce the income of traders in conventional markets. Moreover, most traders are from the lower middle class, while the contemporary market owners generally come from the upper middle class. Thus, it will give birth to a higher economic disparity.

– There is Exploitation of Suppliers

Usually, modern markets in an area can be counted on the fingers, while the number of suppliers is vast. The existence of competition between suppliers or distributors is often used and exploited by this market to aim that the market can demand the products from these suppliers.

– There is a reduction in the country’s foreign exchange

Because the potential resources of the domestic market tend to be large, foreign markets will also enter the Indonesian market. Investment activities or investments in Indonesia by foreign parties have continued to this day.

The effect that can occur in the long term is that the foreign party can reduce the country’s foreign exchange earnings, such as increased import activity, and interest profits and funds contained in it can also be sent to other countries.

Characteristics of the Modern Market

Modern Market
Modern Market

– Location Selection

Location is very directly related to the target market to be obtained. For this reason, each modern market has a different target market.

– Item Layout and Design

The layout and arrangement of goods in the modern market will usually be grouped by product type.

– Shopping Service Facilities

The form of services provided in modern markets usually begins with the presence of salespeople and shopping facilities. These facilities typically have a cash register, a dressing room, and a bag or shopping basket. These three things are commonplace and exist in the modern market.

These facilities will make it easier for every consumer to shop, so they can get all the products they want faster. On the other hand, if these facilities and services are disrupted, consumers will become uncomfortable.

This modern market will provide great flexibility to the consumer to choose goods, both in terms of size, model, price the integrity of the goods, so that the consumer will select his interests to his heart’s content.

This will also minimize the occurrence of damage to goods. Even so, the modern market usually provides services in the form of customer service as an after-sales service.

– Goods Procurement System

Usually, there will be a team that is responsible for making purchases of goods and meeting each store’s needs. The purchasing team will use the annual purchase budget, which will then be adjusted to the monthly control system to get a clear picture of the number of goods purchased.

In addition, the team will also negotiate the purchase price with the distributor and determine the right selling price.

– Sales system

Sales of existing products in the modern market will usually be carried out directly by consumers. The product has been given a price tag, so there is no bargaining process for goods like in traditional markets. The sales process in small quantities in this market will generally be done in cash or cash, either by credit or debit card.

– Goods Distribution

Every modern market has a relatively comprehensive network of stores, so the distribution of goods will be critical. This is done to avoid stockpiling in the warehouse, which can increase costs. Usually, these products have been centered in the central warehouse before being distributed by the goods distribution team.

After going through quality checks, the goods will then be quickly distributed to other stores. As for the inspection of goods, usually, it will be carried out centrally in several warehouses so that the negotiation process with suppliers becomes faster and more efficient.

– Payment system

Payment for products in modern markets will be made in cash or using a credit card. The credit card can be issued by a bank issuer or the current market.

– Item Security System

Theft of merchandise in the modern market is a severe problem and can affect the profitability of a department store. Some of the highest forms of theft usually occur in women’s clothing, men’s clothing, and certain accessories.

While some places prone to theft are the area around the entrance, the clothing testing room, and the reception or delivery room, to overcome this, every modern market has various ways, such as installing convex mirrors, CCTV cameras, etc.

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