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LIS Team

Category: GT & MT Stores

GT and MT Stores LIS- A Comprehensive Guide to Offline Trade

Understanding the differences between General Trade (GT) and Modern Trade (MT) stores is crucial for navigating the retail landscape, especially in emerging markets like India.

The retail industry has undergone significant transformations in recent years, driven by changing consumer preferences, technological advancements, and evolving business models. Yet even today, 85% of retail shopping is offline.

With more than 13 million grocery stores in India, two primary trade channels that are shaping the contemporary retail landscape are - Modern Trade and General Trade

Modern Trade refers to the large-scale retail store where customers experience a range of products of the brand. It encompasses shop formats like supermarkets, hypermarkets, etc. 

On the other hand, General Trade refers to the traditional and smaller-scale retail shops where customers directly ask the shopkeeper for a specific product/brand. It encompasses small grocery stores, local departmental stores, etc. 

In this blog, let’s understand more about the Modern Trade Stores.

Modern Trade outlets are often spacious, well organized, and cover a variety of products and brands. Products ranging from groceries to electronics, consumers find every category of products under one roof. 

With a massive variety of products in the market, it is crucial for the brands to stay relevant all the time and be present in the eyes of the consumers at the point of purchase. One way to achieve this is through distribution, which is to make sure that products reach all the stores. But only distribution of the products is not sufficient, the brand needs to influence the customers into buying their products. 

One way to influence the customers is by media investment and advertising through digital media channels which turns out to be quite expensive for the company. The second and more cost-effective way is to invest in point of sale by appointing promoters in modern trade stores. 

Let’s understand the role of the promoters in the brand-building process for the company-

Brand-building process

Product Demonstration & Education- One of the prime duties of brand promoters is to demonstrate the features and benefits of the products. They provide customers with hands-on experience, explaining how the product works and how it can fulfill their needs. 

Building Brand Awareness- Promoters are like brand ambassadors in the store, actively promoting brand awareness. Promoters are not salesman but they understand the needs of the consumers and help them with the right product. 

Gathering Customer Feedback- Promoters in the store serve as a valuable source of feedback from the customers. They conduct product samplings in the store and collect customers’ opinions, preferences, suggestions, and feedback which is used for product improvement. 

Merchandising- Promoters maintain good relationships with the store staff and collaborate with them to ensure that the products are well-merchandised and easy for customers to find. These relationships are crucial for the brand to secure shelf space, and prime display locations, especially during festive seasons. 

Inventory Management- Promoters in the store also help in maintaining inventory, ensuring that no high-demand products go out of stock. They also ensure that all products are placed on the shelves and offers are displayed properly for better visibility. 

Promoters are unsung heroes of the modern trade, increasing sales and driving success for both the brand and the retail landscape. They play an important role in brand building, but it is crucial to appoint efficient resources and keep them motivated to sustain optimum performances. This is where the role of LIS comes into play.

At Love in Store, we hire optimum resources for the role of promoters for our clientele. To ensure the efficient performance of the appointed promoters, regular sessions are conducted for continuous learning.

Promoters Training

Promoters are one of the strong sources of marketing for the brand and we at LIS understand this. Our hired promoters are well-versed in marketing tactics and understand the needs of the consumers and the expectations of our brand. Professionals at LIS also keep track of the efficiency of the promoters and keep them updated with the latest marketing trends and information. Not only this, we also conduct internal competitions to boost the morale and motivation of the promoters to give their best.

FAQs -

What distinguishes General Trade (GT) from Modern Trade (MT) stores?

Answer: General Trade (GT) stores are traditional, small-scale retail shops offering personalized services. In contrast, Modern Trade (MT) stores, such as supermarkets, hypermarkets, and standalone outlets, provide an organized, large-scale shopping experience with a wide product range and standardized services. Modern trade stores in India are expanding, transforming the retail sector.

What is modern trade?

Answer: Modern trade refers to organized retailing in large formats like supermarkets, hypermarkets, and chain stores. These stores follow standardized processes, offer a wide range of products, and cater to urban or semi-urban consumers. Modern trade emphasizes efficient supply chains and customer experience.

What are modern trade stores?

Answer: Modern trade stores are large, organized retail outlets such as supermarkets, hypermarkets, and convenience store chains. These stores focus on product variety, consumer-friendly layouts, and promotions, offering a structured shopping experience.

How does modern trade differ from general trade?

Answer: Modern trade operates in organized, large retail formats with sophisticated supply chains and advanced technology. In contrast, general trade (GT) refers to traditional, small-scale retail outlets like kiranas, mom-and-pop stores, and local vendors, which cater to smaller customer bases with more personalized service.

What are GT and MT in marketing?

Answer: GT (General Trade) and MT (Modern Trade) represent two major retail formats in marketing. General trade is the traditional retail model involving small stores, while modern trade refers to organized retail chains. Marketing strategies vary significantly between the two, with modern trade relying on data-driven promotions and general trade focusing on localized approaches.

What are the benefits of modern trade stores?

Answer: Modern trade stores offer several advantages, including:

  • Wide product range and availability
  • Enhanced shopping experience with organized layouts
  • Frequent promotions and loyalty programs
  • Standardized pricing and product quality
  • Better customer service and returns management

What is general trade in marketing?

Answer: General trade (GT) is the traditional retail model characterized by small, independent retailers like neighborhood shops, kiranas, and street vendors. It typically operates on informal, one-to-one interactions and serves a smaller, localized customer base.

How do modern trade stores impact FMCG sales?

Answer: Modern trade stores play a critical role in increasing sales for fast-moving consumer goods (FMCG) companies by providing:

  • Larger shelf space for product displays
  • Greater product visibility
  • Opportunities for promotions and in-store branding
  • A wider customer reach, especially in urban areas

Which is more effective: general trade or modern trade?

The effectiveness of general trade versus modern trade depends on the product, target market, and region. General trade works well in rural and semi-urban areas where personal relationships with shop owners play a key role. Modern trade is more effective in urban areas due to its organized format, diverse product range, and technological advancements in inventory and customer management.

How does modern trade help in brand visibility?

Answer: Modern trade helps improve brand visibility through better product placement, in-store advertising, and frequent promotions. Organized retail chains also provide brands with valuable consumer insights to create personalized marketing strategies and loyalty programs.

How do FMCG companies use GT and MT strategies?

Answer: FMCG companies use a combination of GT (General Trade) and MT (Modern Trade) strategies to reach diverse consumer groups. GT strategies are focused on building strong relationships with small retailers, offering personalized service, and managing stock-keeping units (SKUs). MT strategies involve leveraging modern retail chains for large-scale product distribution, promotions, and data-driven decision-making.

If you also want to enhance your presence in the offline marketplaces, get in touch with us @ info@loveinstore.com

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