Meeting the challenge of consumer demand

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Karantina Market, Kenya {photo credit: Niti Bhan}

Understanding consumer demand is an inherent part of the informal trader’s expertise. In the cash economy, unsold inventory is sunk cost. The balance between risk and return is a constant juggling, interwoven with the need for incoming cash flow to meet outgoing expenses.

This tabletop – informal retail – caught my attention for its unexpected juxtaposition of products for sale. Day old chicks which you would purchase to raise for eggs or meat and toilet paper. Mama had X amount of surplus cash available to invest in inventory, and one guesses that she’s not a regular market woman or trader so much as someone who saw an opportunity one market day to make some extra cash.

Neither product is a risk, yet in a sense they are both discretionary purchases the customers milling around the market might make if they had some surplus cash of their own. This is an example of opportunity in the margins, for both buyer and seller.

What observations can you add to this?

This entry was posted in African Consumer Market, Analysis, Base of the Pyramid, Business Models, Consumer Behaviour, Frugality, Informal & Flexible, Mama Biashara, Marketing, Perspective, Prepaid Economy & Informal Sector, Risk, Strategy and tagged , , , , . Bookmark the permalink. Trackbacks are closed, but you can post a comment.

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