merchant

Etymology

The English term, merchant comes from the Middle English, marchant, which is derived from Anglo-Norman marchaunt, which itself originated from the Vulgar Latin mercatant or mercatans, formed from present participle of mercatare ('to trade, to traffic or to deal in'). The term refers to any type of reseller, but can also be used with a specific qualifier to suggest a person who deals in a given characteristic such as speed merchant, which refer to someone who enjoys fast driving; noise merchant, which refers to a group of musical performers; and dream merchant, which refers to someone who peddles idealistic visionary scenarios.

Types of merchants

Broadly, merchants can be classified into two categories:

A wholesale merchant operates in the chain between the producer and retail merchant, typically dealing in large quantities of goods. In other words, a wholesaler does not sell directly to end-users. Some wholesale merchants only organize the movement of goods rather than move the goods themselves.

A retail merchant or retailer sells merchandise to end-users or consumers (including businesses), usually in small quantities. A shop-keeper is an example of a retail merchant.

However, the term 'merchant' is often used in a variety of specialised contexts such as in merchant banker, merchant navy or merchant services.

History

Merchants in antiquity

Merchants have existed as long as humankind has conducted business, trade or commerce. A merchant class operated in many pre-modern societies. Open-air, public markets, where merchants and traders congregated, functioned in ancient Babylonia and Assyria, China, Egypt, Greece, India, Persia, Phoenicia and Rome. These markets typically occupied a place in the town's centre. Surrounding the market, skilled artisans, such as metal-workers and leather workers, occupied premises in alley ways that led to the open market-place. These artisans may have sold wares directly from their premises, but also prepared goods for sale on market days. In ancient Greece markets operated within the agora (open space), and in ancient Rome in the forum. Rome's forums included the Forum Romanum, the Forum Boarium and Trajan's Forum. The Forum Boarium, one of a series of fora venalia or food markets, originated, as its name suggests, as a cattle market.

Trajan's Forum was a vast expanse, comprising multiple buildings with shops on four levels. The Roman forum was arguably the earliest example of a permanent retail shop-front.

In antiquity, exchange involved direct selling through permanent or semi-permanent retail premises such as stall-holders at market places or shop-keepers selling from their own premises or through door-to-door direct sales via merchants or peddlers. The nature of direct selling centred around transactional exchange, where the goods were on open display, allowing buyers to evaluate quality directly through visual inspection. Relationships between merchant and consumer were minimal often playing into public concerns about the quality of produce.

The Phoenicians became well known amongst contemporaries as "traders in purple" – a reference to their monopoly over the purple dye extracted from the murex shell. The Phoenicians plied their ships across the Mediterranean, becoming a major trading power by the 9th century BCE. Phoenician merchant traders imported and exported wood, textiles, glass and produce such as wine, oil, dried fruit and nuts. Their trading necessitated a network of colonies along the Mediterranean coast, stretching from modern-day Crete through to Tangiers (in present-day Morocco) and northward to Sardinia. The Phoenicians not only traded in tangible goods, but were also instrumental in transporting the trappings of culture. The Phoenicians' extensive trade networks necessitated considerable book-keeping and correspondence. In around 1500 BCE, the Phoenicians developed a script which was much easier to learn than the pictographic systems used in ancient Egypt and Mesopotamia. Phoenician traders and merchants were largely responsible for spreading their alphabet around the region. Phoenician inscriptions have been found in archaeological sites at a number of former Phoenician cities and colonies around the Mediterranean, such as Byblos (in present-day Lebanon) and Carthage in North Africa.

Merchants in the medieval period

Medieval England and Europe witnessed a rapid expansion in trade and the rise of a wealthy and powerful merchant class. Blintiff has investigated the early medieval networks of market towns and suggests that by the 12th century there was an upsurge in the number of market towns and the emergence of merchant circuits as traders bulked up surpluses from smaller regional, different day markets and resold them at the larger centralised market towns. Peddlers or itinerant merchants filled any gaps in the distribution system. From the 11th century, the Crusades helped to open up new trade routes in the Near East, while the adventurer and merchant, Marco Polo stimulated interest in the far East in the 13th century. Medieval merchants began to trade in exotic goods imported from distant shores including spices, wine, food, furs, fine cloth (notably silk), glass, jewellery and many other luxury goods. Market towns began to spread across the landscape during the medieval period.

Merchant guilds began to form during the medieval period with a fraternity formed in 1020 in Tiel in the present-day Netherlands, believed to be the first example of a merchant guild. The term, guild was first used for gilda mercatoria and referred to body of merchants operating out of St. Omer, France in the 11th century. These guilds controlled the way that trade was to be conducted and codified rules governing the conditions of trade, which incorporated into town charters. By the 13th and 14th centuries, merchant guilds had sufficient resources to have erected guild halls in many major market towns.

During the thirteenth century, European businesses became more permanent and were able to maintain sedentary merchants and a system of agents. Merchants specialised in financing, organisation and transport while agents were domiciled overseas and acted on behalf of a principal. These arrangements first appeared on the route from Italy to the Levant, but by the end of the thirteenth century merchant colonies could be found from Paris, London, Bruges, Seville, Barcelona and Montpellier. Over time these partnerships became more commonplace and led to the development of large trading companies. These developments also triggered innovations such as double-entry book-keeping, commercial accountancy, international banking including access to lines of credit, marine insurance and commercial courier services. These developments are sometimes known as the commercial revolution.

Luca Clerici has made a detailed study of Vicenza's food market during the sixteenth century. He found that there were many different types of merchants operating out of the markets. For example, in the dairy trade, cheese and butter was sold by the members of two craft guilds (i.e., cheesemongers who were shopkeepers) and that of the so-called 'resellers' (hucksters selling a wide range of foodstuffs), and by other sellers who were not enrolled in any guild. Cheesemongers' shops were situated at the town hall and were very lucrative. Resellers and direct sellers increased the number of sellers, thus increasing competition, to the benefit of consumers. Direct sellers, who brought produce from the surrounding countryside, sold their wares through the central market place and priced their goods at considerably lower rates than cheesemongers.

Merchants in the modern era

The modern era is generally understood to refer to period that started with the rise of consumer culture in seventeenth- and eighteenth-century Europe.

As standards of living improved in the 17th century, consumers from a broad range of social backgrounds began to purchase goods that were in excess of basic necessities. An emergent middle class or bourgeoisie stimulated demand for luxury goods, and the act of shopping came to be seen as a pleasurable pastime or form of entertainment. 16th century Spanish and 17th century English nobles had been enticed into participating in trade by the profitability of colonial expeditions. In the 17th century, members of the nobility in many European countries like France or Spain still disliked engaging in merchant activities, but such attitudes changed in the 18th century with governmental encouragement of nobles to invest in trade, and the lifting of old bans on nobles engaging in economic activities.

As Britain continued colonial expansion, large commercial organisations came to provide a market for more sophisticated information about trading conditions in foreign lands. Daniel Defoe (c. 1660–1731), a London merchant, published information on trade and economic resources of England, Scotland and India. Defoe was a prolific pamphleteer. His many publications include titles devoted to trade, including: Trade of Britain Stated (1707); Trade of Scotland with France (1713); The Trade to India Critically and Calmly Considered (1720) and A Plan of the English Commerce (1731); all pamphlets that became highly popular with contemporary merchants and business houses.

Armenians operated as a prominent trade nation during the 17th century. They stood out in international trade due to their vast network – mostly built by Armenian migrants spread across Eurasia. Armenians had established prominent trade-relations with all big export players such as India, China, Persia, the Ottoman Empire, England, Venice, the Levant, etc. Soon they captured Eastern and Western Europe, Russia, the Levant, the Middle East, Central Asia, India, and the Far East trade routes, carrying out mostly caravan-trade activities. A significant reason for Armenians' massive involvement in international trade was their geographic location – the Armenian lands stand at the crossroads between Asia and Europe. Another reason was their religion, as they were a Christian nation isolated between Muslim Iran and Muslim Turkey. European Christians preferred to carry out trade with Christians in the region.

In art

Elizabeth Honig has argued that artists, especially the painters of Antwerp, developed a fascination with merchants from the mid-16th century. The wealthier merchants also had the means to commission artworks with the result that individual merchants and their families became important subject matter for artists. For instance, Hans Holbein the younger painted a series of portraits of Hanseatic merchants working out of London's Steelyard in the 1530s. These included including Georg Giese of Danzig; Hillebrant Wedigh of Cologne; Dirk Tybis of Duisburg; Hans of Antwerp, Hermann Wedigh, Johann Schwarzwald, Cyriacus Kale, Derich Born and Derick Berck. Paintings of groups of merchants, notably officers of the merchant guilds, also became subject matter for artists and documented the rise of important mercantile organisations.

In 2022, Dutch photographer Loes Heerink spend hours on bridges in Hanoi to take pictures of Vietnamese street Merchants. She published a book called Merchants in Motion: the art of Vietnamese Street Vendors.

In architecture

Although merchant halls were known in antiquity, they fell into disuse and were not reinvented until Europe's medieval period. During the 12th century, powerful guilds which controlled the way that trade was conducted were established and were often incorporated into the charters granted to market towns. By the 13th and 14th centuries, merchant guilds had acquired sufficient resources to erect guild halls in many major market towns. Many buildings have retained the names derived from their former use as the home or place of business of merchants: