What is MT? What is the difference between MT and TT?

MT or MT channel is one of the terms mentioned a lot in the marketing field. It is also seen as a new sales method, significantly different from other traditional distribution channels. So what is MT? Let’s find out with FPT Shop.

What is MT?

MT stands for Modern Trade, or you can simply understand it as a modern distribution channel or modern commerce. In contrast, TT, or Traditional Trade, refers to traditional-oriented commerce.

To fully understand what MT is, you first need to grasp information about TT. TT (or Traditional Trade) refers to distribution channels that we commonly see every day, such as markets, grocery stores, or retail shops. With TT channels, the choices for products are usually limited. The payment method for TT is mainly cash-based, and buyers are required to physically go to the store to make a purchase.

MT is the modern alternative to the traditional TT distribution channels, which have many limitations in stimulating the process of choosing and buying products for customers. The sales systems on MT distribution channels are highly sophisticated, convenient, and can save a lot of costs compared to traditional stores or mini supermarkets. And to implement this distribution channel, businesses need to have clear and standardized regulations in each stage, from product distribution to post-sales activities. Operations on MT channels are usually diverse and can provide goods both online and offline. However, most brands currently focus on MT channels in large supermarkets or supermarket chains.

The fundamental difference between MT and TT distribution channels

As mentioned above, these two modern (MT) and traditional (TT) distribution channels have relatively different ways of operating. Therefore, these two channels have a lot of differences in work method and effectiveness. First, you can see that MT channels require a more professional approach in terms of intermediary processes as well as activities at the point of sale. Everything needs to adhere to a strict working process and must have clear steps. In contrast, the TT channel does not require employees to be too meticulous and professional.

When customers purchase products through MT distribution channels, they do not necessarily have to go to physical stores like in TT channels. All transaction activities and product selection can be done online, and the payment methods in MT channels are often diverse. There are no limitations on the time for customers to make purchases; they can make payments and purchase goods anywhere and anytime. On the other hand, with TT channels, the traditional market still operates based on simple principles: customers come to stores, like something, and then they make a purchase by exchanging cash at the point of sale.

MT distribution channels take place everywhere, even when you are traveling or on a business trip. They are extremely convenient for customers to shop comfortably. On the other hand, TT channels depend on factors such as time and location.

Applying MT in payment methods at supermarkets

MT is widely applied by many supermarkets or shopping centers. To do this, large brands such as Winmart, Aeon mall, Tops Market, etc., have encountered numerous difficulties. The biggest challenge they face is undoubtedly the dependence on retail units, which leads to all rights being concentrated towards the retailers.

Product display and arrangement also depend heavily on the point of sale, making it difficult to make your products and brand stand out when all other brands have the same desire. Therefore, each business needs to establish strategies, including both main and backup strategies at each individual point of sale. At the same time, deploying MT channels in supermarket chains also requires brands to have a sufficient volume of products to meet all customer needs. If not, your brand will gradually become less attractive in the eyes of buyers.

In conclusion

Above are the most easily understandable details about what MT is. Hopefully, this article has helped you gain a better understanding of this highly effective distribution channel. Stay tuned to FPT Shop for more new knowledge.

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