7th Class Social Science Fundamental Rights and Duties Notes - Markets Around Us

Notes - Markets Around Us

Category : 7th Class

Markets Around Us

 

Where do you get your household articles from? Where do you get your stationery, cosmetics and clothes from? Where do you get fruit, vegetables and groceries from? Of course, you get all these things from the market. You get everything you need in your daily life from the market. You go there to shop. What is a market? How do goods reach there and from where? Who are the people and which are the agencies involved in producing an article and reaching it to you? We will get to know all this and much more in this chapter.

 

Markets are places of trade. They serve as a link between the producers and the consumers and ensure distribution of goods and services in a society. A market is a place that brings together a buyer and a seller to exchange goods or services at a fixed or flexible price that is agreeable to both.

 

Markets were first held in open places, usually in the centre of villages and towns. Bartering of farm produce, clothing and tools took place there. Barter is a system where goods or services are directly exchanged for other goods or services without using money, for example, trading a cow for some sacks of rice or wheat, or a bag of sugar for utensils and clothes. There was no standard unit of exchange. At times, it was not possible to swap goods for other goods in an equable way. Money was created as a tool to help man avoid this problem.

 

Barter system

 

Q. why do you think barter system did not work for long?

 

RETAIL MARKETS

 

Retail markets include shops at fixed locations such as weekly markets, local neighbourhood markets, supermarkets and malls. These are all consumer markets.

 

 

 

 

WEEKLY MARKETS

 

Weekly markets are set up in almost every district on different days of the week. They are called by different names such as Monday market, Shani bazaar, etc. One can buy fresh vegetables and fruits, clothes, stationery and many other things at very reasonable prices at these markets. The vendors of this market have stands, carts or even sell their goods spread on the ground. This is because they shift from one area to another. Farmers and craftspersons get an opportunity to sell their goods directly to the consumer at these markets. Such markets are also called haats.

 

A Weekly market

 

Haats or street markets are popular because they are affordable and colourful. They are set up everywhere and offer all goods ranging from food to clothes. The rates of the items are lower as the vendors make purchases from the wholesale markets or handicraft the goods themselves. These markets are also ideal for small and quick purchases where bargaining is noted a lot.

 

Know a Little More

A flea market is a type of bazaar where inexpensive or secondhand goods are sold.

 

NEIGHBOURHOOD MARKETS

Neighbourhood markets are commonly found in every neighbourhood. These markets are small family-run shops from where people buy everyday needs such as groceries, stationery, and toiletries. There are also a few speciality shops such as cycle shops and textile shops where people can choose the product. A large neighbourhood market might also have a department store with many floors and sections, each selling different types of goods. All neighbourhood markets have hawkers selling ice cream and vegetables on carts and cobblers, barbers and bicycle repairers, etc., sitting under trees.

 

Neighbourhood markets are useful as they are close to our homes and fulfil all our basic daily needs. The shops are run by people known to us so we can request for out of turn help and purchases.

 

SUPERMARKET

 

A supermarket is a form of self-service grocery store, offering a wide variety of household articles, food and beverages organised into departments. They offer a broad selection of goods under a single roof, at low prices. Supermarkets are usually situated near residential areas and are usually part of a chain of stores. Examples are the Big Bazaar and Spencers.

 

SHOPPING MALLS

 

Shopping malls are carefully landscaped complex of shops and showrooms that usually include restaurants, food courts and leading merchandisers with a system of enclosed walkways and escalators connecting the shops and a convenient parking area. Most shopping malls have franchises1 like Lifestyle, Westside and Shopper's Stop and branded stores such as Reebok and Nike. Variety stores or 'dollar stores' offering low-cost goods, with limited selection are also there. Many shopping malls have multiplexes2 for people to watch movies, and office spaces. Most shops at the mall provide the facility of cashless shopping where the consumers can buy goods using their debit cards or credit cards.

 

A Shopping mall

 

MARKET ON THE INTERNET

 

The act of purchasing products or services over the Internet is called online shopping. We use online markets such as eBay, Amazon and Flipkart to do online shopping. It is convenient and easy to make purchasing from the comfort of home or office. During holiday season, online shopping reduces the waiting in long lines. It also does not require going to different stores to search for the same item at a desired rate. Online shopping has grown in popularity over the years.

 

Know a Little More

The largest mall in South Asia is Mantri Square in Bengaluru, India. The largest mall in India is LuLu Mall in Kochi, Kerala.

 

Q. Which market do you like to visit-a local shop or a showroom in a mall? Why?

 

SUPPLY CHAIN: FROM PRODUCER TO CONSUMER

 

An entire network of entities is involved directly or indirectly in serving a product to the consumer or customer. It comprises a supplier that supplies raw material to the manufacturer or producer, a producer who converts the material into products, a warehouse that stores, a wholesaler that delivers the product to the retailer, and a retailer who brings the product to the ultimate user. This is called a supply chain.

 

Q. why do you think so many agents get involved between a producer and a consumer in a supply chain?

 

WHOLESALERS AND RETAILERS

 

The seller is of two main types: wholesaler and retailer. They are the middlemen between producers and consumers.

A wholesaler, also called distributor, takes goods from a manufacturer in large amounts and sells them to a retailer. The wholesaler has large warehouses for storing goods. The retailer purchases the goods in smaller quantities from the wholesaler. In addition to selling material to the retailer, a wholesaler also sells goods like large stocks of paper, etc., directly to the ultimate consumer. A wholesaler also sells materials used to make goods to other manufacturers. This may include raw material. Due to bulk order, the wholesaler is able to give a discount to the consumer or retailer.

 

Wholesale market is the market for the sale of goods to a retailer. The wholesaler receives large quantities of goods from a manufacturer and distributes them to retail stores, where they are sold to consumers. A wholesaler receives a better price than the manufacturer. The wholesale market is where the retailer accesses a wide range of products for making a profit. For example, a mandi is a wholesale market for vegetables and fruits. Sadar Bazaar in Delhi is a wholesale market for a variety of goods.

 

 

A Traditional Supply Chinn

 

A retailer buys goods or products in comparatively smaller quantities from the wholesaler and then sells them in still smaller quantities to the consumer at his shop with a profit margin. Customer satisfaction is of prime importance to a retailer. He displays his goods neatly on the shelves and has a ready stock of goods that are in high demand. We mostly buy our everyday needs from retailers. We can bargain with retailers of small shops, hawkers, etc. However, retailers at department stores and malls follow fixed prices. We can get better discounts at such places during seasonal sale.

 

Know a Little More

Shopping for fun is called window shopping. It may involve just taking pleasure by seeing the products in showrooms and malls. It does not always result in a purchase.

 

THE LINK BETWEEN WHOLESALE AND RETAIL MARKET

 

The wholesale market is the link between the manufacturer and the retailer while the retail market is the link between the wholesaler and the consumer. The wholesale market provides a wide range of products and reduces the effort of the manufacturer in distributing them to the consumers. The wholesale market provides delivery of the product. The wholesaler informs the producer about the products in demand and the retailer grievances. He also informs the retailer of new products and change in prices and sometimes sells goods on credit.

 

The retailer selects the products from the wholesale market and displays them for sale at the retail shops. He is responsible for after sale services and handling consumer grievances of the products that he sells at a profit from the retail outlet.

 

CHOICE OF MARKET

 

People's choice of different types of markets depends on factors like availability, convenience, Quality, price, credit, etc.

 

Availability is an important factor. People mostly go to the neighbourhood market to buy their daily needs. The neighbourhood market has shops selling articles of daily use. However, if a person wants a branded pair of jeans, it may not be available in the neighbourhood market. He or she might have to go to a department store or shopping mall. Convenience also affects people's choice of a market place. Markets that are closer to home and office are very convenient to visit. In summer, when it is very hot, it is comfortable to shop in an air- conditioned mall. Most people look at the price and quality when they have to buy a product. However, wealthy people may not consider the price. There are people who do not mind paying a little more for better quality. The affordability of a product depends on the budget and income of the buyer. Today, people do not like to carry large sums of money when they go shopping. Instead they prefer carrying credit or debit cards. A debit card enables them to shop and pay from their bank account. A credit card allows them to purchase goods and pay for it later as a monthly instalment. The credit facility is popular among urban population that buys expensive household appliances.

 

Swipe machine for debit and credit cards

 

The choice of the market reflects the prevailing inequality in the society. People who have low income prefer to make purchases by cash or debit card at local markets, or buy affordable brands. People of high income group do not bother before spending money on high-end brands and use credit card or cash at malls. They also do online shopping regularly.

Notes - Markets Around Us
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