Hi,
The vendor can have an address which are stored thanks to the "vendor custom fields".
When there is a vendor registration, HikaMarket will copy the user address into the vendor.
About the category, by default HikaMarket place all vendors under the same category but it is possible thanks to a little custom plugin to select another parent category when the vendor is created (or updated).
If you want more details about it ; I know that I already provide some code sample in this forum.
Using such kind of custom plugin, you can, depending the vendor address, create a tree structure.
And you can even create a dynamic structure, where your plugin could create categories if the state or the city is not there.
After that, if your vendor registration is manual, you might no need some custom plugin and you can create the vendor yourself and move the vendor category where you want (by changing his parent category)
Around the vendor address, we also have an integration with "my maps location" which can display the vendors in a map and allow the customer to make some search for products around his current location.
The vendor zones are useful if you want to have "sales rep".
When a customer buy a product which doe snot have vendor assignation, HikaMarket will dynamically assign the product to a vendor depending the customer address and the vendor zones.
So, I don't think that feature will be what you're looking for.
Regards,