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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.

For nanostores, striving to become the community group-buying leader is gaining prominence. This paper aims to construct Hotelling linear models to investigate whether nanostores should be registered as leaders and their decisions in a competitive environment.

This paper constructs three Hotelling linear models: neither nanostore registers as community leader, only one nanostore registers as community leader and both nanostores register as community leader. The competitive operation strategies of two general nanostores under three scenarios are solved.

The study finds that nanostores without a cost advantage may benefit from being the first leader. The nanostore's preferred decisions depend on the investment cost parameters of its own and competitors which may lead to market share competition. Furthermore, consumers' sensitivity to community group-buying service has a negative effect on nanostores' profit.

The study is one of the few to consider the competition between community leaders. Besides, the study considers that the utilities functions of consumers are concurrently impacted by the service decisions, along with the price in different nanostores. It can provide nanostores useful implications in the dynamic industry.

In the context of increasing competition between chained retailers and family-owned retailers, it is key to understand the customer's format choice. Using a logistics regression (i.e., binary logit) model, we explain customers' preference to buy in supermarkets or in small-scale, mom-and-pop stores like nanostores. We collect a representative sample of over 110 surveys from customers in the district of Surco, Lima, Perú, which is a representative area of the features of Lima's residents. We asked customers to focus on analyzing their preference between two retail formats: modern channel (i.e., big-box retailers, supermarkets, and hypermarkets) and traditional channel (i.e., mom-and-pop stores, nanostores). Our surveys included factors pertaining retail format attributes as well as factors related to the purchasing process. The results showed that time available for purchase and a comparatively better perceived service at a mom-and-pop store (i.e., nanostore) are significant factors that explain a higher probability of selecting these retailers, while a better store's ambience benefits more supermarkets. The overall discrete choice model is able to explain 65% of the variance using pseudo R-squared of the actual format choice decisions.

Although e-wallet adoption has grown in recent years, there are some countries like Peru with low penetration rates. Contrary to prior studies that focused on customers' adoption of e-wallets, this study focuses on merchants' adoption to fully understand the use of these services. Additionally, considering that e-wallets are two-sided markets with the co-existence of two distinct economic agents (customer and merchants) interacting through these platforms, this study is the first to assess the dynamics of inter-side benefits from the merchants' perspective. Finally, interoperability was also included to determine its role in countries where the interaction between different e-wallets is limited.

Based on two-sided markets and social cognitive theory, a model was proposed including merchants' perceived benefits associated with the use of e-wallets, for them and for their customers (inter-side). Additionally, technical issues such as interoperability were measured. Data were collected from nanostore owners in Lima in 2022. A structural equation modeling technique was used to determine the impact of both types of benefits and technical features on merchants' adoption of e-wallets. Finally, a polynomial regression with response surface methodology was used to assess the interaction of the benefits for both sides of the platform from the merchants' perspective.

The two-sided-market features of e-wallets were validated. From merchants' view, the use of these platforms is the result of balancing the benefits for them and for their customers, and the interaction between these two types of benefits varies according to the socio-economic level in which the nanostore operates. Additionally, interoperability was found to be important for merchants, so future policies should commit to achieve an ecosystem that facilitates the interoperability not only among e-wallets but also between e-wallets and third-party services. Finally, since service availability is also important for merchants, e-wallet providers should invest in improving their infrastructure's scalability.

Prior studies have mainly focused on the customer side of e-wallets, with little research about the adoption of digital payment methods by the merchant side. In addition, no study has focused on the effect of one of the sides of the platform on the other side (inter-side benefits) when adopting these services. Finally, the effect of interoperability across platforms has not been addressed in detail yet. This study aims to fill these gaps by proposing a framework to understand the adoption of these services by merchants in terms of inter-side benefits and technical issues.

In recent decades, there has been an important growth of Latin American cities; therefore, the demand for resources and services has increased for cities to function and meet the needs of their inhabitants. Latin American cities are growing rapidly and this process affects the quality of life of citizens. The purpose of this paper is to characterize the logistics of an area of the city of Lima, Peru; through the analysis of the practices of the last mile distribution, and in this way, contribute with information that can be used for decision-making and for the proposal of public policies that improve the efficiency of logistics operations in the area.

Regarding the methodology applied, first, we identified the district to be analyzed using marketing information from the districts of Lima. Next, the authors collected information using forms following the methodology of the last Mile/Km²-MIT. Finally, the project planning finished in 15 days.

It was found that most of the stores in the area are nanostores that sell diverse products, the community does not have parking lots or loading and unloading areas and the majority of deliveries are made to wholesalers and supermarkets. In addition, a relationship between business density and the traffic congestion was identified and taxis are the most widely used means of distribution of goods. Most of the streets do not have signage, they are mainly one-way and do not have exclusive routes for public transportation.

Due to not having georeference information about the specific stores location and statistics data about its suppliers, the research results may show a primarily scope. Based on the results, the authors are encouraged to do more research using data analytics as in the next steps.

The paper reinforces the importance and challenge of working collaboration between suppliers, owners and local government.

The paper provides opportunities to create new policies, as well as an incentive plan for personal workers, suppliers and ecosolution proposals.

Currently, as per the authors’ knowledge, there is no varied literature that characterizes and analyzes the logistic profile of the districts of Lima city and serves as a basis for the implementation of solutions and public policies.

El objetivo de esta investigación es caracterizar la logística de un área de la ciudad de Lima, Perú; a través del análisis de las prácticas de la distribución de la última milla y, de esta manera, contribuir con información que se puede utilizar para la toma de decisiones y para la propuesta de políticas públicas que mejoren la eficiencia de las operaciones logísticas en el área.

Con respecto a la metodología aplicada, primero, se identificó el distrito a analizar utilizando información de mercadeo de los distritos de Lima; a continuación, se recopiló información utilizando formularios siguiendo la metodología de la última milla/Km²-MIT; finalmente, la planificación del proyecto terminó en 15 días.

Se encontró que la mayoría de los establecimientos son pequeñas tiendas que venden productos diversos, no tienen estacionamientos o áreas de carga y descarga y la mayoría de las entregas se realizan a mayoristas y supermercados. Además, existe una relación entre la densidad comercial y la congestión de tráfico, siendo los taxis los medios de distribución más utilizados. La mayoría de las calles no tienen señalización, son de un solo sentido y no tienen carriles exclusivos para el transporte público. Estos hallazgos son relevantes para la implementación de políticas públicas para la mejora de la infraestructura y eficiencia de las operaciones logísticas.

Actualmente no existe una literatura variada que caracterice y analice el perfil logístico de los distritos de la ciudad de Lima y sirva de base para la implementación de soluciones y políticas públicas.

Palabras clave Planificación, Planeamiento urbano, Distribución, Submegaciudades, Megaciudades, Urbanismo, Recursos

Artículo de investigación

O objetivo desta investigação é caracterizar a logística de uma área da cidade de Lima, Peru; através da análise das práticas de distribuição da última milha e, desta forma, contribuir com informações que possam ser utilizadas na tomada de decisão e pela proposição de políticas públicas que melhorem a eficiência das operações logísticas na área.

Com relação à metodologia aplicada, primeiro, o distrito a ser analisado foi identificado usando informações de marketing dos distritos de Lima; em seguida, as informações foram coletadas por meio de formulários seguindo a metodologia da última milha/Km²-MIT; finalmente, o planejamento do projeto terminou em 15 dias.

Constatou-se que a maioria das lojas comercializa diversos produtos, não possui estacionamentos ou áreas de carga e descarga e sendo a maioria das entregas realizadas para atacadistas e supermercados. Além disso, existe uma relação entre a densidade comercial e o congestionamento de tráfego, sendo os táxis os meios de distribuição mais utilizados. A maioria das ruas não possui sinalização, são de sentido único e não possuem pistas exclusivas para o transporte público. Essas constatações são relevantes para a implementação de políticas públicas para melhorar a infraestrutura e a eficiência das operações logísticas.

Atualmente não existe uma literatura variada que caracterize e analise o perfil logístico dos distritos da cidade de Lima e sirva de base para a implementação de soluções e políticas públicas.

Palavras-chave Planejamento, Planejamento urbano, Distribuição, Sub megacidades, Megacidades, Planejamento urbano, Recursos

Artigo de pesquisa

The field of Supply Chain Management (SCM) has mainly focused on applications for large firms, where significant amount of theory has been developed in the last decades. Little attention has been received by micro and small enterprises (MSEs) that in Latin America represent approximately 99% of all businesses and are the key for the development of the economy, employment, and growth of the region. Due to MSEs' lack of productivity, only a fraction of them survive and thus contribute to Latin America's economic growth. In this chapter, we discuss the connection between MSEs' productivity growth and SCM. We present key takeaways from the literature and summarized different research approaches used to study this emerging field, specifically related to the impact of the size of the company, the use of surveys to gather data, and the importance of field interventions. We also present a large-scale project (i.e., MIT GeneSys) that focuses on improving survival of MSEs in developing countries and discuss some preliminary learnings gained via conducting shadowing/immersion of ∼250 MSEs from Mexico, Colombia, Chile, Ecuador, Peru, and Bolivia. We conclude the chapter by presenting some recommendations for the future research agenda for the emerging field of SCM for MSEs in Latin America.