Markets Around Us
A market is an environment that allows buyers and sellers to exchange goods, services and information. Market interactions are defined by demand and supply. Buying and selling takes place in different ways, not necessarily through shops in the market. For example, a car factory purchases engine, gears, petrol tanks, axles, wheels, etc. from various other factories. There are different types of markets like weekly markets, wholesale markets, and retail markets. In a weekly market, traders set up their shops for a day and close them up in the evening. The next day, they may set up their shops at a different place. There are many shops that sell goods and services in our neighbourhoods. Besides, there are shopping complexes and malls in the cities, where we get both branded and non-branded goods.
People generally do not directly buy from the producer, but there is a chain of markets. Producers produce the goods and sell them in large numbers to the wholesale traders. The wholesale traders then sell them to retailers. Retailers are found in weekly markets, neighbuorhood shops, shopping complexes and malls. Consumer is the ultimate actor in the market. It is the consumer who creates the demand for a good in the market.
Shop owners in weekly markets and shopping complexes work differently and also earn differently. Small traders have little money to run a shop and profit margin is also small. Traders in malls and shopping complexes spend a lot of money on maintenance and advertising. There is inequality among sellers. The retailer who sells to the ultimate consumer makes the largest profit. Manufacturers, farmers and producers earn the least. There is inequality among buyers too. Some cannot even afford cheap good while others buy expensive goods in the malls.