The Private Village Shops: Private shops are the main channels in the rural market for a large variety of products. They are also the cheapest and the most convenient channel to align with.
The village shopkeeper is forced to deal in a large number of products in order to make his operations viable, which means a large inventory. The larger lead-time for replenishments from urban based production point enlarges the inventory holding further. And as his sales are not uniform throughout the year, he has to carry inventory over a longer period of time, leading to the blocking up of his capital.
Organizing one’s channel out of these private shops, however, requires assiduous efforts on the part of the firm. The choices are usually confined to-
- Existing traditional private shops.
- Moneylenders willing to branch off to trade.
- Land owners willing to branch off to trade.
- Educated unemployed persons.
The firm has to select personnel from the above group depending on the product line and other relevant factors and then train and develop them into competent dealers.
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