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Wet Markets, Supermarkets and the "Big Middle" for Food Retailing in Developing Countries: Evidence from Thailand

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  • Gorton, Matthew
  • Sauer, Johannes
  • Supatpongkul, Pajaree

Abstract

Summary Drawing on the Big Middle theory of retail evolution, an analysis of secondary and primary survey data on Thai shopping behavior seeks to understand the shift away from wet markets to supermarkets. On all salient attributes affecting retail outlet choice, supermarkets outperform wet markets. While wet markets continue to account for the majority of expenditure on fresh produce their market share has eroded sharply. A bootstrapped bivariate ordered probit model identifies the characteristics of supermarket and wet market shoppers. The analysis questions previous work which perceived wet markets in East Asia as possessing a long-term competitive advantage in food retailing.

Suggested Citation

  • Gorton, Matthew & Sauer, Johannes & Supatpongkul, Pajaree, 2011. "Wet Markets, Supermarkets and the "Big Middle" for Food Retailing in Developing Countries: Evidence from Thailand," World Development, Elsevier, vol. 39(9), pages 1624-1637, September.
    • Handle: RePEc:eee:wdevel:v:39:y:2011:i:9:p:1624-1637
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    5. Meng, Ting & Florkowski, Wojciech J. & Sarpong, Daniel B. & Chinnan, Manjeet S. & Resurreccion, Anna V.A., 2014. "Consumer’s Food Shopping Choice in Ghana: Supermarket or Traditional Outlets?," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 17(A), pages 1-24, March.
    6. Wongprawmas, Rungsaran & Canavari, Maurizio, 2015. "Heterogeneity in consumer preferences for food safety lavel in Thailand," 143rd Joint EAAE/AAEA Seminar, March 25-27, 2015, Naples, Italy 202744, European Association of Agricultural Economists.
    7. Wongprawmas, Rungsaran & Canavari, Maurizio, 2017. "Consumers’ willingness-to-pay for food safety labels in an emerging market: The case of fresh produce in Thailand," Food Policy, Elsevier, vol. 69(C), pages 25-34.
    8. Alemayehu Dekeba Bekele & Joost Beuving & Ruerd Ruben, 2017. "How African Households Shop: Evidence from Dairy Chains in Ethiopia," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 29(4), pages 806-826, August.
    9. Minten, Bart & Tamru, Seneshaw & Reardon, Thomas, 2021. "Post-harvest losses in rural-urban value chains: Evidence from Ethiopia," Food Policy, Elsevier, vol. 98(C).
    10. Salnikova, Ekaterina & Grunert, Klaus G., 2020. "The role of consumption orientation in consumer food preferences in emerging markets," Journal of Business Research, Elsevier, vol. 112(C), pages 147-159.
    11. Ali, Ghaffar & Nitivattananon, Vilas & Abbas, Sawaid & Sabir, Muazzam, 2012. "Green waste to biogas: Renewable energy possibilities for Thailand's green markets," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(7), pages 5423-5429.
    12. Yuan, Yuan & Si, Zhenzhong & Zhong, Taiyang & Huang, Xianjin & Crush, Jonathan, 2021. "Revisiting China’s supermarket revolution: Complementarity and co-evolution between traditional and modern food outlets," World Development, Elsevier, vol. 147(C).
    13. Madhavan-Nambiar, Padmanand & Florkowski, Wojciech & Chinnan, Manjeet & Ressurrecion, Anna, 2015. "Shopping outlet choice and frequency in urban areas of the Republic of Uganda," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196821, Southern Agricultural Economics Association.
    14. Maruyama, Masayoshi & Wu, Lihui, 2014. "Quantifying barriers impeding the diffusion of supermarkets in China: The role of shopping habits," Journal of Retailing and Consumer Services, Elsevier, vol. 21(3), pages 383-393.
    15. Liang Lu & Thomas Reardon, 2018. "An Economic Model of the Evolution of Food Retail and Supply Chains from Traditional Shops to Supermarkets to E-Commerce," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(5), pages 1320-1335.
    16. Tiwary, A. & Williams, I.D. & Pant, D.C. & Kishore, V.V.N., 2015. "Emerging perspectives on environmental burden minimisation initiatives from anaerobic digestion technologies for community scale biomass valorisation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 883-901.
    17. Taiyang Zhong & Zhenzhong Si & Jonathan Crush & Zhiying Xu & Xianjin Huang & Steffanie Scott & Shuangshuang Tang & Xiang Zhang, 2018. "The Impact of Proximity to Wet Markets and Supermarkets on Household Dietary Diversity in Nanjing City, China," Sustainability, MDPI, vol. 10(5), pages 1-18, May.
    18. Zeng, Di & Umberger, Wendy J. & Rupa, Jesmin Ara, 2017. "Food Market Modernization and Diet-related Health Outcomes: Evidence from Urban Vietnam," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258470, Agricultural and Applied Economics Association.
    19. Liu, Zhen & Kornher, Lukas & Qaim, Matin, 2023. "Impacts of supermarkets on child nutrition in China," Discussion Papers 335389, University of Bonn, Center for Development Research (ZEF).

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