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Increasing Competitiveness of Nanostore Business Models for Different Socioeconomic Levels

Supply Chain Management and Logistics in Emerging Markets

ISBN: 978-1-83909-333-3, eISBN: 978-1-83909-331-9

Publication date: 20 November 2020


This chapter explores how customer's attributes, shopping behavior, and preferences affect the retail choice in fiercely competitive retail environments of megacities from developing countries. We study how small, family-owned retailers (i.e., nanostores) compete against organized chains from the modern channel (i.e., convenience stores and supermarkets) at different socioeconomic levels in 9 out of 16 boroughs from Mexico City. Primary data were collected using a combination of instruments (i.e., observation, interviews, and surveys) that were applied to relevant stakeholders of the retail footprint where nanostores develop their operations. We analyze the data via statistical tools such as descriptive statistics and independent nonparametric tests to understand the significant factors of the competitive landscape in which nanostores are immersed. We supplement our research methodology by using causal loop diagrams to identify opportunities in the way suppliers, shopkeepers, competitors, and customers interact with each other and new business models for the nanostore supply chains. By breaking down our result analysis into low-, middle-, and high-income areas, we provide insightful recommendations to increase nanostores' survival, improve their operations, and grow them in Mexico City by addressing issues from the supply, store management, and customer service.




The authors would like to acknowledge Professor Jan Fransoo in their guidance at the beginning of this work. We would also like to thank all students from Industrial Engineering from Monterrey Tech Campus Ciudad de Mexico, who collected data and applied all instruments during the fall of 2016 and all 2017. We also thank Monterrey Tech authorities for allowing us to perform high-impact research together with its highly engaged, talented students. We also thank Miguel Alexis Muñoz Chavez for providing the picture of the nanostore. This research was partially funded with the scholarship granted to Dr. Mejia-Argueta under the call 291121 of 2016 from the National Council of Science and Technology (CONACyT).


Rangel-Espinosa, M.F., Hernández-Arreola, J.R., Pale-Jiménez, E., Salinas-Navarro, D.E. and Mejía Argueta, C. (2020), "Increasing Competitiveness of Nanostore Business Models for Different Socioeconomic Levels", Yoshizaki, H.T.Y., Mejía Argueta, C. and Mattos, M.G. (Ed.) Supply Chain Management and Logistics in Emerging Markets, Emerald Publishing Limited, Leeds, pp. 273-298.



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