TY - CHAP
T1 - Omnichannel and Traditional Retail
T2 - Platforms to Seamlessly Connect Retail, Service, and Delivery
AU - Fransoo, Jan C.
AU - Zhao, Lei
AU - Martinelli, José Larco
N1 - Publisher Copyright:
© 2019, Springer Nature Switzerland AG.
PY - 2019
Y1 - 2019
N2 - Millions of nanostores, small, independent and family-owned and operated stores, flock the cities in emerging markets and other developing countries. Fransoo et al. (2017) estimate that there are about 50 million nanostores globally. In developing markets in Central and Latin America, Africa, and Asia, they represent a large share of the consumer market. In this chapter, we focus in particular on consumer packaged goods. Nielsen (2015) estimates that in these markets on average about 50% of the sales of consumer packaged goods reach the consumer via this traditional retail channel. The market share, however, varies widely: in countries like China and Brazil, the organized channel has captured well over half of the CPG sales, while in countries in Sub-Saharan Africa, along with the likes of Pakistan and Bolivia, the nanostore share exceeds 80%. In particular, consumers at the base of the pyramid (Prahalad and Hammond 2002), which in many developing countries represent more than two-thirds of the population, buy at nanostores. Since most of the growth in sales of CPG is in this market segment, the large manufacturers and brand owners of this world, ranging from Coca Cola to Heineken, and from Unilever to Danone, spend considerable effort serving this channel.
AB - Millions of nanostores, small, independent and family-owned and operated stores, flock the cities in emerging markets and other developing countries. Fransoo et al. (2017) estimate that there are about 50 million nanostores globally. In developing markets in Central and Latin America, Africa, and Asia, they represent a large share of the consumer market. In this chapter, we focus in particular on consumer packaged goods. Nielsen (2015) estimates that in these markets on average about 50% of the sales of consumer packaged goods reach the consumer via this traditional retail channel. The market share, however, varies widely: in countries like China and Brazil, the organized channel has captured well over half of the CPG sales, while in countries in Sub-Saharan Africa, along with the likes of Pakistan and Bolivia, the nanostore share exceeds 80%. In particular, consumers at the base of the pyramid (Prahalad and Hammond 2002), which in many developing countries represent more than two-thirds of the population, buy at nanostores. Since most of the growth in sales of CPG is in this market segment, the large manufacturers and brand owners of this world, ranging from Coca Cola to Heineken, and from Unilever to Danone, spend considerable effort serving this channel.
KW - Emerging markets
KW - Nanostores
KW - O2O
KW - Platforms
KW - Traditional retail
UR - http://www.scopus.com/inward/record.url?scp=85083489585&partnerID=8YFLogxK
U2 - 10.1007/978-3-030-20119-7_14
DO - 10.1007/978-3-030-20119-7_14
M3 - Chapter
AN - SCOPUS:85083489585
T3 - Springer Series in Supply Chain Management
SP - 341
EP - 353
BT - Springer Series in Supply Chain Management
PB - Springer Nature
ER -