Expanding the shopping cart or improving its contents: A study on “Modern” retail in India

Several factors (including rising incomes, urbanization, a young population, and more women in the labor force) have influenced retailing in India in recent years, with the emergence and rapid spread of supermarkets being the most dramatic change. Without disputing the high growth rates of organized...

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Main Authors: Roy, Devesh, Joshi, Pramod Kumar, Karandikar, Bhushana, Joshi, Shwetima, Sonkar, Vinay Kumar
Format: Journal Article
Language:Inglés
Published: Walter de Gruyter GmbH 2014
Subjects:
Online Access:https://hdl.handle.net/10568/151467
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author Roy, Devesh
Joshi, Pramod Kumar
Karandikar, Bhushana
Joshi, Shwetima
Sonkar, Vinay Kumar
author_browse Joshi, Pramod Kumar
Joshi, Shwetima
Karandikar, Bhushana
Roy, Devesh
Sonkar, Vinay Kumar
author_facet Roy, Devesh
Joshi, Pramod Kumar
Karandikar, Bhushana
Joshi, Shwetima
Sonkar, Vinay Kumar
author_sort Roy, Devesh
collection Repository of Agricultural Research Outputs (CGSpace)
description Several factors (including rising incomes, urbanization, a young population, and more women in the labor force) have influenced retailing in India in recent years, with the emergence and rapid spread of supermarkets being the most dramatic change. Without disputing the high growth rates of organized retail in the food sector, in this study we test whether supermarket growth is associated with greater demand for nonprice attributes such as food safety and customization of products. Using on-site surveys at supermarkets in three Indian cities of different population sizes and income levels, and using ordered models for consumer choice, we find that nonprice attributes remain subordinate to price for consumers in supermarkets. At the same time, rising import penetration in supermarkets creates an outlet where some consumers can satisfy their demand for nonprice attributes that are not provided by domestic products. The fact that such attributes are not demanded of domestic products and that imports fill in to provide these nonprice attributes implies that demand pull for back-end development is weak in Indian food retail. This is important, because a command approach by the government to induce back-end development will work only if enforcement is strong, which seems unlikely.
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spelling CGSpace1514672024-10-25T07:58:53Z Expanding the shopping cart or improving its contents: A study on “Modern” retail in India Roy, Devesh Joshi, Pramod Kumar Karandikar, Bhushana Joshi, Shwetima Sonkar, Vinay Kumar models supermarkets Several factors (including rising incomes, urbanization, a young population, and more women in the labor force) have influenced retailing in India in recent years, with the emergence and rapid spread of supermarkets being the most dramatic change. Without disputing the high growth rates of organized retail in the food sector, in this study we test whether supermarket growth is associated with greater demand for nonprice attributes such as food safety and customization of products. Using on-site surveys at supermarkets in three Indian cities of different population sizes and income levels, and using ordered models for consumer choice, we find that nonprice attributes remain subordinate to price for consumers in supermarkets. At the same time, rising import penetration in supermarkets creates an outlet where some consumers can satisfy their demand for nonprice attributes that are not provided by domestic products. The fact that such attributes are not demanded of domestic products and that imports fill in to provide these nonprice attributes implies that demand pull for back-end development is weak in Indian food retail. This is important, because a command approach by the government to induce back-end development will work only if enforcement is strong, which seems unlikely. 2014 2024-08-01T02:57:31Z 2024-08-01T02:57:31Z Journal Article https://hdl.handle.net/10568/151467 en Limited Access Walter de Gruyter GmbH Roy, Devesh; Joshi, Pramod Kumar; Karandikar, Bhushana; Joshi, Shwetima; Sonkar, and Vinay Kumar. 2014. Expanding the shopping cart or improving its contents: A study on “Modern” retail in India. Journal of Agricultural and Food Industrial Organization 12(1): 159-180. https://doi.org/10.1515/jafio-2013-0012
spellingShingle models
supermarkets
Roy, Devesh
Joshi, Pramod Kumar
Karandikar, Bhushana
Joshi, Shwetima
Sonkar, Vinay Kumar
Expanding the shopping cart or improving its contents: A study on “Modern” retail in India
title Expanding the shopping cart or improving its contents: A study on “Modern” retail in India
title_full Expanding the shopping cart or improving its contents: A study on “Modern” retail in India
title_fullStr Expanding the shopping cart or improving its contents: A study on “Modern” retail in India
title_full_unstemmed Expanding the shopping cart or improving its contents: A study on “Modern” retail in India
title_short Expanding the shopping cart or improving its contents: A study on “Modern” retail in India
title_sort expanding the shopping cart or improving its contents a study on modern retail in india
topic models
supermarkets
url https://hdl.handle.net/10568/151467
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