CHARACTERISTICS OF THE NEPALESE MARKET

1. Rural Nature:
The Nepalese market is predominantly rural as more than four fifth of the total population live in villages. The temporary markets popularly known as Hat Bazzar still play dominant role in the village economy. These village general stores serve much of the consumers living in the rural areas. These local stores have limited supply capabilities. Many consumers have to travel long distance to local markets in order to buy essential products and services. Some parts of the country still practice barter exchange and pay in kinds to the services of tailors, blacksmiths and farm labors.

2. Sellers market to buyers market.
A large part of the Nepalese market is supply- driven and controlled by the sellers. The Nepalese market is slowly moving to become the buyers market. Establishment of several industries in the area of consumer goods has introduced competition in the market. This has benefited the general consumer.

3. Low Consumer awareness.
Nepalese consumers have low product and brand awareness. They are more sensitive to price than in quality of the product. The legal protection of consumer from product failure risk and untruthful advantage is very weak. The consumer associations are city- based and almost non- functional.

4. Credit transaction:
A large part of the market practices are suffering from long payment cycle of distributors and dealers. Although the payment cycle of the retailers are normal the payment cycle of the distributors and dealers are very long. This has hampered the smooth functioning of the marketing system.

5. Push selling.
Nepalese firms heavily believe in push selling. They try to persuade, motivate and reward the channel members to move the product towards the final customer.

6. Technology weakness.
Nepalese firms are reluctant to use the services of marketing experts in the areas of new product development quality control and promotions.