VENDING TRADE: TYPIFICATION, BENEFITS AND RISKS
Cite as APA style citation
P’jatnyc'ka G., Grygorenko O., Tarasjuk M. Vendyngova torgivlja: typizacija, perevagy ta ryzyky. Mizhnarodnyj naukovo-praktychnyj zhurnal "Tovary i rynky". 2021. № 1. S. 47-61.
Analysis of recent research and publications has shown that despite the not new practice of vending trade in Ukraine, so far insufficient attention has been paid to identifying trends in vending in the COVID crisis, identifying advantages, disadvantages and risks that should be considered by trade managers from the decision to startup and ending with the probability of deciding to exit the market of services in the segment of vending.
The aim of the article is to determine the main advantages and risks / disadvantages of vending trade in the conditions of its further development both during the COVID crisis and after it.
Materials and methods. In the course of the research the methods of comparative analysis, field research, questionnaire survey, analytical data processing, identification of advantages and risks were used.
Results. The advantages and disadvantages / risks of vending trade that affect the results of management of this activity are identified. The main advantages of vending trade include: fast payback period with successful placement of machines; low level of labor intensity; possibility of remote control and management; operation of machines in 24/7 mode. It is established that the main risks during the lockdown period are the risks associated with the breakdown or shortcomings of traditional supply chains and reduced sales due to the introduction of home quarantine and, consequently, increasing the likelihood of economically unjustified energy costs, costs of monthly maintenance, etc. Typification of vending by subjects of sales is carried out. It is proposed to distinguish ten main types of vending: product, artificial (non-product), services, gambling or event, medical, luxury, floral (flower and souvenir), environmental, printing, mixed, as well as – less common (or single) and vending to meet specific needs. Examples of the main types of vending in different countries of the world are presented. The general characteristics of vending machines are given and advantages from their activity are defined. An analysis of the change in the mood of the vending business operators based on the results of their survey in the spring and autumn of 2020, the period of the consequences of the COVID crisis, was carried out. The possibilities of medical vending development in Ukraine were evaluated.
Conclusion. It is established that for Ukraine, in addition to the general above-mentioned risks of vending trade, it is also risky that the vast majority of the country’s population does not have high-quality experience of buying and selling goods / services through vending machines (excluding food segment). It is concluded that in a pandemic, some segments of vending trade (in particular, medical vending) have prospects for sales growth.
In the future, the results of the study can be used to develop alternative development strategies of trade enterprises and enterprises with other economic activities for which vending trade can become a related service in the process of providing high quality service to consumers of their goods, creating comfortable working conditions for employees, etc.
Keywords: vending trade, vending machines, advantages, risks, typification, management of activity, trade enterprises, strategy, development.
P’jatnyc'ka G., Grygorenko O., Tarasjuk M. Vendyngova torgivlja: typizacija, perevagy ta ryzyky. Mizhnarodnyj naukovo-praktychnyj zhurnal "Tovary i rynky". 2021. № 1. S. 47-61.
| UDC 004.738.5:339 | ||
| JEL Classification: L81, L26, М21 | DOI: https://doi.org/10.31617/tr.knute.2021(37)04 | |
|
Galyna PIATNYTSKA, E-mail: Ця електронна адреса захищена від спам-ботів. вам потрібно увімкнути JavaScript, щоб побачити її. ORCID: 0000-0003-3463-133X |
Doctor of Economics, Professor, Professor at the Department of Management Kyiv National University of Trade and Economics 19, Kyoto str., Kyiv, 02156, Ukraine |
|
|
Oleh HRYHORENKO, E-mail: Ця електронна адреса захищена від спам-ботів. вам потрібно увімкнути JavaScript, щоб побачити її. ORCID: 0000-0002-2847-0149 |
Candidate of Technical Sciences, Associate Professor, Associate Professor at the Department of Engineering and Technical Disciplines Kyiv National University of Trade and Economics 19, Kyoto str., Kyiv, 02156, Ukraine |
|
|
Maryna TARASIUK, E-mail: Ця електронна адреса захищена від спам-ботів. вам потрібно увімкнути JavaScript, щоб побачити її. ORCID: 0000-0002-3336-6370 |
financial consultant of "FUIB" JSC, Bachelor of organizations management Kyiv National University of Trade and Economics 19, Kyoto str., Kyiv, 02156, Ukraine |
VENDING TRADE: TYPIFICATION, BENEFITS AND RISKS
Background. In the last two years modern business is developing in a high level of uncertainty, regardless of the country of its establishment and doing. Not every business entity (especially small in size and in such a specific for Ukraine type of business as vending) is able to quickly and adequately assess new development trends in the COVID crisis, to properly use their advantages, given the new risks.Analysis of recent research and publications has shown that despite the not new practice of vending trade in Ukraine, so far insufficient attention has been paid to identifying trends in vending in the COVID crisis, identifying advantages, disadvantages and risks that should be considered by trade managers from the decision to startup and ending with the probability of deciding to exit the market of services in the segment of vending.
The aim of the article is to determine the main advantages and risks / disadvantages of vending trade in the conditions of its further development both during the COVID crisis and after it.
Materials and methods. In the course of the research the methods of comparative analysis, field research, questionnaire survey, analytical data processing, identification of advantages and risks were used.
Results. The advantages and disadvantages / risks of vending trade that affect the results of management of this activity are identified. The main advantages of vending trade include: fast payback period with successful placement of machines; low level of labor intensity; possibility of remote control and management; operation of machines in 24/7 mode. It is established that the main risks during the lockdown period are the risks associated with the breakdown or shortcomings of traditional supply chains and reduced sales due to the introduction of home quarantine and, consequently, increasing the likelihood of economically unjustified energy costs, costs of monthly maintenance, etc. Typification of vending by subjects of sales is carried out. It is proposed to distinguish ten main types of vending: product, artificial (non-product), services, gambling or event, medical, luxury, floral (flower and souvenir), environmental, printing, mixed, as well as – less common (or single) and vending to meet specific needs. Examples of the main types of vending in different countries of the world are presented. The general characteristics of vending machines are given and advantages from their activity are defined. An analysis of the change in the mood of the vending business operators based on the results of their survey in the spring and autumn of 2020, the period of the consequences of the COVID crisis, was carried out. The possibilities of medical vending development in Ukraine were evaluated.
Conclusion. It is established that for Ukraine, in addition to the general above-mentioned risks of vending trade, it is also risky that the vast majority of the country’s population does not have high-quality experience of buying and selling goods / services through vending machines (excluding food segment). It is concluded that in a pandemic, some segments of vending trade (in particular, medical vending) have prospects for sales growth.
In the future, the results of the study can be used to develop alternative development strategies of trade enterprises and enterprises with other economic activities for which vending trade can become a related service in the process of providing high quality service to consumers of their goods, creating comfortable working conditions for employees, etc.
Keywords: vending trade, vending machines, advantages, risks, typification, management of activity, trade enterprises, strategy, development.
REFERENCES
- Pantanoa, E., Pizzib, G., Scarpib, D., & Dennisc, Ch. (2020). Competing during a pandemic? Retailers’ ups and downs during the COVID-19 outbreak. Journal of Business Research. (Vol. 116), (pp. 209-213) [in English].
- Niemeir, S., Zocchi, A., & Catena, M. (2013). Reshaping Retail: Why Technology is Transforming the Industry and how to Win in the new Consumer Driven World. Wiley [in English].
- Mazaraki, A. A., Lagutin, V. D., Gerasymenko, A. G. et al. (2016). Vnutrishnja torgivlja Ukrai’ny [Internal trade of Ukraine]. A. A. Mazaraki (Ed.). Kyi’v: Kyi’vs’kyj nacional’nyj torgovel’no-ekonomichnyj universytet [in Ukrainian].
- Zhukovs’ka, V. M. (2018). Social’ni vazheli vplyvu na rozvytok pidpryjemstv torgivli [Social levers of influence on the development of trade enterprises]. Biznes-navigator – Business navigator. (Issue 1-1), (pp. 118-123) [in Ukrainian].
- Pjatnyckaja, G. T., & Zhukovskaja, V. N. (2015). Razvytye vnutrennej torgovly: sovremennye transformacyy y pryorytety socyalyzacyy [Development of internal trade: modern transformations and priorities of socialization]. Aktual’ni problemy ekonomiky – Actual problems of economy, 11 (173), 106-119 [in Russian].
- Shymanovs’ka-Dianych, L. M., & Pedchenko, N. S. (2019). Pidhody do ocinky efektyvnosti ta rezul’tatyvnosti dijal’nosti torgovel’nogo pidpryjemstva: suchasnyj pogljad [Approaches to assessing the efficiency and effectiveness of a commercial enterprise: a modern view]. Social’no-ekonomichni problemy suchasnogo periodu Ukrai’ny – Socio-economic problems of the modern period of Ukraine. (Issue 1 (135), (pp. 71-77) [in Ukrainian].
- Il’chenko, N. B., & Garbaruk, I. M. (2018). Global’ni trendy rozvytku rozdribnoi’ torgivli [Global trends in retail development]. Naukovyj visnyk Mizhnarodnogo gumanitarnogo universytetu – Scientific Bulletin of the International Humanitarian University. (Issue 31), (pp. 32-38) [in Ukrainian].
- Barna, M. (2015). Koncepcija rozvytku systemy vnutrishn’oi’ torgivli Ukrai’ny v suchasnyh umovah transformacii’ [The concept of development of the system of internal trade of Ukraine in modern conditions of transformation]. Investycii’: praktyka ta dosvid – Investments: practice and experience, 10, 63-70 [in Ukrainian].
- P’jatnyc’ka, G., & Grygorenko, O. M. (2019). Elektronna komercija V2S: rozvytok u Shidnij Jevropi, ryzyky ta efekt instytucional’nogo vytisnennja [B2C e-commerce: development in Eastern Europe, risks and the effect of institutional displacement]. Menedzhment ta pidpryjemnyctvo v Ukrai’ni: etapy stanovlennja ta problemy rozvytku – Management and entrepreneurship in Ukraine: stages of formation and problems of development. (Vol. 1), 1, 122-130. L’viv: L’vivs’ka politehnika [in Ukrainian].
- P’jatnyc’ka, G., Grygorenko, O., & Shevchun, M. (2020). Vnutrishnja torgivlja Ukrai’ny: strukturno-dynamichnyj analiz [Internal trade of Ukraine: structural and dynamic analysis]. Mizhnarodnyj naukovo-praktychnyj zhurnal "Tovary i rynky" – International Scientific and Practical Journal "Commodities and Markets", 3, 5-21. DOI: https://doi.org/10.31617/tr.knute.2020(35)01 [in Ukrainian].
- Cardaci, R., Burgassi, S., Golinelli, D., Nante, N., Battaglia, M. A., Bezzini, D. et al.(2017). Automatic Vending-Machines Contamination: A Pilot Study. Global Journal of Health Science. (Vol. 9), 2, 63-67 [in English].
- Biljavs’ka, Ju. V., & Mykytenko, N. V. (2020). Vendyng v umovah pandemii’ COVID-19: zarubizhnyj ta vitchyznjanyj dosvid [Vending in the context of the COVID-19 pandemic: foreign and domestic experience]. Naukovyj visnyk Hersons’kogo derzhavnogo universytetu. Serija: Ekonomichni nauky – Scientific Bulletin of Kherson State University. Series: Economic Sciences. (Issue 40), (pp. 13-18) [in Ukrainian].
- Mazaraki, A. A., Psheslins’kyj, D. M., & Smolin, I. V. (2010). Torgovel’ne pidpryjemstvo: strategija, polityka, konkurentospromozhnist’ [Trading company: strategy, policy, competitiveness]. Kyi’v: Kyi’vs’kyj nacional’nyj torgovel’no-ekonomichnyj universytet [in Ukrainian].
- Gorbal’, N. I., Keller, Z. Ju., & Najchuk-Hrushh, M. B. (2017). Vendyngovyj startap na ukrai’ns’komu rynku [Vending startup on the Ukrainian market]. Naukovyj visnyk NLTU Ukrai’ny. Serija: Ekonomichna – Scientific Bulletin of UNFU of Ukraine. Series: Economic. (Issue 27), 2, 53-57 [in Ukrainian].
- European Vending Association Reports "Marked’ Improvement for Industry". Retrieved from https://www.vendingmarketwatch.com/management/news/21205631/european-vending-association-reports-marked-improvement-for-industry [in English].
- TOP-15 samyh neobychnyh vendingovyh avtomatov [TOP 15 of the most unusual vending machines]. Retrieved from https://infobus.eu/blog/top-15-samyh-neobychnyh-vendingovyh-avtomatov [in Russian].
- Latvia to Roll Out COVID Tests Through Vending Machines. Retrieved from https://www.planet-vending.com/latvia-to-roll-out-covid-tests-through-vending-machines [in English].
- Vending avtomaty s testami na COVID-19 ustanovjat v Mezhdunarodnom ajeroportu Oklenda [Vending machines with COVID-19 tests to be installed at Auckland International Airport]. Retrieved from https://kiosksoft.ru/news/2021/01/19/vending-avtomaty-s-testami-na-covid-19-ustanovyat-v-mezhdunarodnom-aeroportu-oklenda-10502 [in Russian].
- V Japonii nabory s PCR testami na COVID-19 prodajutsja v vending avtomatah [In Japan, PCR test kits for COVID-19 are sold in vending machines]. Retrieved from https://kiosksoft.ru/news/2021/02/04/v-yaponii-nabory-s-pcr-testami-na-covid-19-prodayutsya-v-vending-avtomatah-64311 [in Russian].
- Singapurskaja set’ fandomatov dokazala svoju jeffektivnost’ [Singapore fandom network has proven to be effective]. Retrieved from https://kiosksoft.ru/news/2020/12/30/singapurskaya-set-fandomatov-dokazala-svoyu-effektivnost-77296 [in Russian].
- V Kitae otkryli 20-metrovyj avtomat po prodazhe avtomobilej [20-meter car vending machine was opened in China]. Retrieved from https://rau.ua/ru/news/avtomat-po-prodazhe-avtomobiley [in Russian].
- Symonenko, K. (2019). Prodazhi bez prodavciv: torgovel’ni avtomaty vse chastishe zaminjujut’ ljudynu [Sales without sellers: vending machines are increasingly replacing people]. Oficijnyj sajt Asociacii’ rytejleriv Ukrai’ny RAU – Official site of the Association of Retailers of Ukraine RAU. Retrieved from https://rau.ua/novyni/prodazhi-torgovelni-avtomaty [in Ukrainian].
- Rynok vendyngu – odyn iz najbil’sh dynamichno zrostajuchyh rynkiv [The vending market is one of the fastest growing markets]. Vending-Solution Company Avangard. Retrieved from http://www.findglocal.com/UA/Vyshneve/112175550419685/VendingSolution [in Ukrainian].
- Market Information: Data from the official siteof European Vending & Coffee Service Association. Retrieved from https://www.vending-europe.eu/activities/market-information [in English].