Vending trade: typification, benefits and risks

Abstract

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.