markets

Markets

Learning Goals:

• Meaning of market
• Types of market
• Buyer and seller

Market is a place where the goods are offered by the sellers in exchange for money from buyers. We go to the market to buy everyday essentials, comfort goods and luxury goods. In other words, we purchase staples, apparels, footwear, housekeeping items, home appliances, stationery, artefacts, etc. from the market. The kinds of markets we visit for our basic needs and comfortable living include:

• Weekly markets
• Neighbourhood shops
• Shopping complex and malls

Weekly market

A weekly market is held on a specific day of the week. Permanent shops are not there in weekly markets. Traders set up a shop for the day and in the evening they close it. They set up the shops in another location the next day. In India, there are thousands of such shops. These cater to the everyday requirements of the people. These have the following salient features:

• Cheaper Rates: Many items are available in the weekly markets at cheaper rates. This is because since these shops are not permanent, they save on expenses such as rent, electricity and fees to the government.
• Family run: The shop owners store the items they sell at home. Mostly, they are helped by the family members and do not employ outside people and hence also save the money spent on wages to workers.
• High Competition: Since these markets have a large number of shops selling the same item, there is high competition among them. Hence if a seller charges a higher amount for an item, buyers will buy from another seller who either charges a lower rate or allows the buyer to bargain to some extent.

Advantages of weekly markets

• One stop shop: All the items are available under one roof. Buyers do not have to go to different places for different goods. This saves their time and money. Whether they want groceries, vegetables, clothes or footwear- all are available at one place.
• More choice for buyers: Since there are many sellers selling the same product, the buyer has a choice regarding who to buy from.
• Convenience: Since a high variety of goods is available, it is very convenient for the buyer.

Shops in the neighbourhood

Many shops sell goods and services in our neighbourhood. For example;

• The dairy, selling milk and related products
• Departmental stores; selling groceries, stationery, eatables, etc.
• Pharmacies; selling medicines

These are a mix of permanent shops and roadside stalls. Roadside stalls are that of eateries, vegetable hawkers, mechanic, etc.

Advantages of shops in the neighbourhood

• Proximity: As the name suggests these shops are in our neighbourhood and hence close to our homes.
• Open all days: These shops, unlike weekly markets, operate on all days. Hence we can go for our purchases on any day of the week at our convenience.
• Flexibility: Since the buyer and seller know each other these shops give goods on credit also. Hence payment can be made later also. In other words, there is flexibility regarding payment.
• Personal touch: Since the buyer and seller know each other, the transaction has a personal touch to it. It is not a purely commercial transaction.

Shopping complexes and malls

Shopping complexes are the markets in the urban areas that have many shops. Malls are large multi-storeyed air-conditioned buildings with shops on different floors. We get both branded and non-branded goods. As mentioned in the chapter on advertising, branded goods are more expensive than non-branded goods. The branded goods are sold by the companies through shops in large urban markets and at times, through special showrooms also. Because of the high costs of these due to packaging, advertising, etc. many people cannot afford to buy them.

Note Compare and contrast a weekly market and a shopping complex on the following:

Answer:

Market	Kinds of goods sold	Price of goods	Sellers	Buyers
Weekly markets	Unbranded	Very reasonable	Earn less	Cannot afford even the cheapest of goods
Shopping complex	Both branded and unbranded but mainly branded	Expensive	Very rich and earn well	Very rich and elite

Markets and equality

Since markets are a platform for buying and selling, more demand for goods and hence more sales would boost the production and the opportunities for people to earn. The characteristics of sellers and buyers of a small shop and big malls are as follows:

Sellers: There is a difference between the small shop owners we see in the weekly market and the ones in a big shopping complex. The former is a small trader with little money whereas the latter is very rich and can spend a huge amount of money to set up the shop. The difference in their earnings is also substantial.

Buyers: The buyers of the weekly market cannot afford even the cheapest of goods whereas the buyers visiting the malls are able to afford the branded goods and other luxury items on sale there.