25 Jun The Informal Customer
The main difference between formal and informal customer interactions is how the relationship is built and maintained. The formal trade market’s interactions are established and grounded on integrity, shopper experience and location convenience. Whilst the informal traders’ interaction is less prescriptive, but relies on a more personalised approach to grow their customer base.
Female predominantly, Males as well
23-60+ years old
Informal settlements, high density urban dwellings and outlying rural areas
$420 or less
Daily informal customer spend (per informal trader):
Depending on the size and the development of a region, informal customers can generate between USD$17 – USD$105 daily income for an informal trader.
The informal market customer has many purchase opportunities in an average day from street and table top hawkers to walk-in stores. So the questions are, when do they buy what products and why do they choose that informal trader?
The customer is most likely to purchase:
Previously, large FMCG brands have found it challenging to establish proper avenues of distribution for their products in the informal market. But, establishing a distribution avenue is only the beginning. Brands need to promote their products in the cluttered informal market environment. This is where the importance of choosing the right Point of Sales Merchandise (POSM) comes in.
In modern trade, POSM primarily serves as a temporary function for disruption. In the informal market environment, traders look to develop their presentation of products on sale. By nature an uncontrolled environment, traders seeks organisation and functionality from their POSM.
Characteristically unique to the informal market, POSM assets must add functional value to the informal trader. The question you must ask yourself is, what piece of POSM can a trader continue using after the initial sale/promotion?