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Understanding the fragmented demand for transportation – Small traditional retailers in emerging markets

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  • Boulaksil, Youssef
  • Fransoo, Jan C.
  • Blanco, Edgar E.
  • Koubida, Sallem

Abstract

The demand for goods transportation in emerging markets is fragmented, mainly due to the unstructured and informal ordering behavior of the many small, traditional retailers in these markets. In this paper, we study such small traditional retailers located in the neighborhoods of big cities in emerging markets. We call them nanostores. Although modern retailing has grown in the last two decades in these markets, the number of nanostores is still increasing and serving a substantial part of the daily demand for many basic products, such as bread, milk, and cooking oil. We thus conduct an empirical study to understand the business environment of these nanostores in emerging markets by collecting data from 333 nanostores, spread over eight large cities in Morocco. We analyze the data, conduct a cluster analysis, and describe their business environment with a focus on their order behavior, which typically triggers the transportation decisions upstream in the supply chain. We find that the order information from these retailers may not be the best information to rely on when making transportation decisions. Our study also provides several interesting insights that may help organize transportation toward these nanostores in a fundamentally different way. We also discuss a number of opportunities to improve the efficiency of the supply chains that serve them.

Suggested Citation

  • Boulaksil, Youssef & Fransoo, Jan C. & Blanco, Edgar E. & Koubida, Sallem, 2019. "Understanding the fragmented demand for transportation – Small traditional retailers in emerging markets," Transportation Research Part A: Policy and Practice, Elsevier, vol. 130(C), pages 65-81.
    • Handle: RePEc:eee:transa:v:130:y:2019:i:c:p:65-81
    DOI: 10.1016/j.tra.2019.09.003
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    References listed on IDEAS

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    1. Youssef Boulaksil & M. Jaafar Belkora, 2017. "Distribution Strategies Toward Nanostores in Emerging Markets: The Valencia Case," Interfaces, INFORMS, vol. 47(6), pages 505-517, December.
    2. Y. Boulaksil & A.C.C. van Wijk, 2018. "A cash-constrained stochastic inventory model with consumer loans and supplier credits: the case of nanostores in emerging markets," International Journal of Production Research, Taylor & Francis Journals, vol. 56(15), pages 4983-5004, August.
    3. Harvey, Michael & Novicevic, Milorad M., 2000. "Staffing global marketing positions: What we don't know can make a difference," Journal of World Business, Elsevier, vol. 35(1), pages 80-94, April.
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    Cited by:

    1. Camilo Andrés Mora-Quiñones & Leopoldo Eduardo Cárdenas-Barrón & Josué C. Velázquez-Martínez & Karla M. Gámez-Pérez, 2021. "The Coexistence of Nanostores within the Retail Landscape: A Spatial Statistical Study for Mexico City," Sustainability, MDPI, vol. 13(19), pages 1-17, September.
    2. Viktor E. Kovalev & Ksenia V. Novikova & Ekaterina A. Antineskul, 2022. "Cluster analysis of food retailers in Russia," Upravlenets, Ural State University of Economics, vol. 13(2), pages 70-84, May.
    3. Sun, Shuxing & Zhang, Bin, 2022. "Operation strategies for nanostore in community group buying," Omega, Elsevier, vol. 110(C).
    4. Onjewu, Adah-Kole Emmanuel & Olan, Femi & Nyuur, Richard Benon-be-isan & Paul, Salima & Nguyen, Ha Thanh Truc, 2023. "The effect of government support on Bureaucracy, COVID-19 resilience and export intensity: Evidence from North Africa," Journal of Business Research, Elsevier, vol. 156(C).
    5. Fransoo, Jan C. & Cedillo-Campos, M. Gaston & Gamez-Perez, Karla M., 2022. "Estimating the benefits of dedicated unloading bays by field experimentation," Other publications TiSEM 2a1a802f-012c-4d11-93de-e, Tilburg University, School of Economics and Management.
    6. Fransoo, Jan C. & Cedillo-Campos, M. Gastón & Gámez-Pérez, Karla M., 2022. "Estimating the benefits of dedicated unloading bays by field experimentation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 160(C), pages 348-354.
    7. Abel Kebede Reda & Girma Gebresenbet & Lori Tavasszy & David Ljungberg, 2020. "Identification of the Regional and Economic Contexts of Sustainable Urban Logistics Policies," Sustainability, MDPI, vol. 12(20), pages 1-19, October.

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