The distribution channel of goods in the Vietnamese market is known for two channels MT and GT. In order to help many shop owners and investors not clearly understand and distinguish between MT and GT forms, the following article riclix.com will provide the most important information to help you choose the right distribution channel for your store.

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We will introduce the concept of MT channel and GT channel, analyze the pros and cons of each of these channels. From there, you can decide which channel model to choose.

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Goods distribution channel

What is MT channel and GT channel

?To connect goods between producers and consumers, the distribution channel is the most important bridge to consume goods. Depending on the products consumed and the target customers, companies can choose an appropriate distribution channel to bring revenue benefits to the production unit. For FMCG retail channels, the two most used concepts are GT and MT.

GT channel: GT stands for General Trade term, this is a method of distributing goods according to a traditional multi-level system. Because of its tradition, GT is the most used channel on the market today in Vietnam that companies apply to bring goods to domestic consumers.

With a hierarchical system from distributors to wholesalers, retailers to wholesale markets, traditional markets, retail stores and finally to consumers.

MT channel: MT channel stands for Modern Trade, this is a modern sales distribution channel, compared to traditional sales, MT has been streamlined, cutting down the retail sales stages, to focus on distribution sales. Distributing large goods to save costs.

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The MT sales channel concentrates a variety of goods with many types of goods in one location with professional managers to help bring products to consumers directly by means such as supermarkets, convenience stores. , grocery.

Conclusion

It can be understood simply that GT is a multi-level sales system and MT is a centralized sales channel with large supermarkets and hypermarkets with business brands.

GT form can be known to traditional market places such as Cho Lon, Kim Bien Market (HCMC), Dong Xuan market, Ninh Hiep market (Hanoi).

MT channel can be known for convenience stores and supermarkets such as CitiMart, Supermarket, Hypermarket G7, Family Mart…store system with investment from foreign enterprises such as Guadian, 7 Seven…

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Advantages and disadvantages of MT and GT

GT sales channel :

– Advantages: The system has many levels, so it has a large number of members, but the manufacturer only needs to manage sales staff. The price is cheaper than selling at MT channels or showrooms.

– Disadvantages: Because of the multi-level sales system, the product is difficult to control in terms of discounts and prices in the market through each distribution level. Conflict of prices and sales areas often occurs in the process of approaching customers. The management team has been around for a long time, so it is easy for disputes and competition between distributors in the same system.

MT sales channel:

– Advantages: With MT channel, manufacturers or businesses can directly manage. Can identify and reach consumers easily. MT also uses professional retail locations and channels with separate brands.

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– Disadvantages: Members are concentrated in big cities and provinces, the number of which is unevenly distributed. Because it is newly formed and has little experience, MT has to spend a lot of money and time to market.

Should choose MT channel or GT channel for supermarket business

Should you choose MT channel or GT . channel?

In order to bring profits and help their supermarket store system to work at its best, investors need to consider choosing an import model that brings initiative. On the market today, there are 3 model channels for you to choose from:

– Enter 100% GT channel for small and retail grocery stores

– Enter 100% of MT channels, applicable to large supermarkets and hypermarkets

The combination of MT and GT is used in mini supermarkets, small and medium sized supermarkets.

Investors and traders of consumer and retail systems need to understand the supply channels and characteristics of each channel to choose the correct MT or GT.

Conclusion

There are obvious advantages of MT channel in the current 4.0 technology era. However, it also comes with great challenges for managers. If you don’t have much experience, just develop from GT channel in parallel with MT. Gradually convert to MT completely.

This will be the optimal solution to help you bring your business to sustainable development.

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Hope the article has brought you important and useful information.

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