Paolo Domingo

MARKDIS K32 16-17

745-915 PM

To start things off, let us first differentiate the two main trades being discussed,
traditional and modern trade. Traditional trade (also known as preservation trades) like its
namesake, is focusing on trading goods and services aimed on preserving history, heritage,
or the current meta. These traders include vendors that go by various names in many
countries, particularly here in South East Asia. They go by sari-sari store here in the
Philippines, Kedai Runcit in Thailand, all going to show how they are all about preserving
their nationality, or their culture. The trade network and infrastructure of traditional traders
of course are different from modern ones and more primitive as people would say.
Traditional trade is more prevalent in poor or developing countries, including the Philippines
due to the price ranges that they offer with their products. In stores like these, a measly 20
peso bill would have buying power over large high-end groceries which are more catered
leaning towards the first-world or developed countries. Shoppers in this sector belong to the
C to D bracket levels which lean on the lower side of the salary proportions.

Now, modern markets still exist in the Philippines, however not as widespread as
traditional trades such as the trademark Sari-sari stores. These are represented by the big
supermarkets and retail chains that are spread throughout the metro, and also use modern
technology to their advantage such as the Internet. Modern trade is more prevalent in first-
world or developed countries such as the United States. Shoppers in this sector belong to
the middle-class persons and above, most of us may belong here. Modern trade isnt limited
to only the store, but can extend throughout the world, through the usage of the internet,
social media and modern technology. This is a major development from traditional trading
wherein a customer must be physically present and the products as well in order for a
transaction to take place. Self-service is also another by-product of modern trading, as
compared to traditional trading that requires a middleman in the person of a shopkeeper or
a salesman.

In my opinion, traditional trade in South East Asia is dominant due to the fact that
most of the ASEAN countries are comprised of developing countries. Traditional trade in Asia
is dominated by a huge 48% of the market, only to be seconded by hypermarkets at 14%.
Not to mention that proximity is a huge factor in purchasing for South East Asian countries
which traditional trading totally caters to. Chances are that when you get out of your house,
there are street vendors selling food, or a nearby sari-sari store that carries immediate
needs such as soaps, canned goods, or small cooking items at the comfort of your nearby
vicinity. Also, Filipinos are huge coffee-lovers. Some people are just simply fueled by coffee,
or always start their day with a daily dose of caffeine. Not to mention that most products
after coffee that are being sold are laundry products, shampoos and biscuits. Most of these
products are for immediate use or consumption primarily in traditional markets. However, in
hypermarkets and supermarkets, the dominant purchases are for normal monthly routine
shopping and for topping up and replenishing items back at home. The traditional trade has
an edge in this due to the fact that the purchases are impulse in nature and

As a manufacturer, it is important to understand the psyche of your consumer in

order to understand their needs and wants. Knowing is half the battle as some people say.
Knowing what your consumers want can aid you in your distribution. It makes your job easier
by knowing exactly what they want, how they want it, when they want it. Little things such
as understanding the demographics and the preferences of a consumer can aid and go a
long way for a producer or distributor, especially in a fierce market such as a traditional
trading market which relies on word-of-mouth, proximity and reputation to gain an edge in
the competition.