The world has been changing: traditional economies are replaced by digital economies
placing greater focus on knowledge and technologies.
Innovations are given exclusive significance under such conditions. Enterprises introduce
innovations with an aim to improve their methods of trade and supply. The turnover of
enterprises, which apply innovations, grows by 18%. Enterprises allocate 1.5% of their
revenues for implementation of innovations.
The application of innovations is significant for enterprises dealing in trade. The revenues
of trading companies constitute 66% of the gross domestic product (GDP) in the african
Union (AU). Within the enterprise structure, there are 31.8% of enterprises engaged in trading
activities and employing over 20.5 million employees of 250.6 million AU workers
the application of innovations in trade have not been widely discussed;
the existing theoretical knowledge is not adequate to changes taking place in trade
The goal of this article is to disclose the perspectives of applying innovations in trade, and
to put forward a new attitude towards the concepts of distribution channels.
TRADE
Trade is an activity for selling goods and services. The word “trade” means to buy, sell or
to exchange in goods. Trade is a branch of economy, dealing with goods are transfer from the
sphere of production to consumption.
Trade is a type of activity covering
wholesale trade. The core activities of wholesale trade consist in the resale of goods to
professional consumers and enterprises. Prior to selling, goods, without changing the
essential form of goods, may be sorted out, packed, mixed or repacked;
retail trade. In a number of cases retail trade is conducted in stores; however there are
also such trading forms as the sale of goods over the internet, warehouse sale, etc.
INNOVATION
innovation is a successful commercial application of new methods, introduction of new and improved already
existing business solutions into the market”. M. E. Porter defines innovation as the main
factor of enterprise competitiveness [2]. Broadly speaking, innovation is the introduction into
the market of business solutions creating new business perspectives, value to consumers and shareholders In scientific literature, technology is suggested to be assessed as innovation since any innovation has to start with an idea and to end with particular results. Technology is the totality of knowledge covering the proprietary law and scientific knowledge.
It is noticeable that the application of innovation in trading companies is focused on the changes of processes; owing to their application, business processes are more actively developed and applied in trading companies. The application of innovations fosters a dynamic
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