E-grocery is the distribution of groceries via the online channel. It includes all fast-moving consumer goods such as fresh food or beauty and personal care items. Over the last years, it has become a global phenomenon. Consumers benefit from higher convenience, a wider range of product, potentially better deals and lower search costs.
Additionally, in certain emerging markets, expats mention increased food safety and familiarity with foreign goods as major advantages. Kevin Stettner gives an overview of e-grocery activities across 23 emerging markets. He identifies major players, their strategies and the underlying market structure.
Stettner’s analysis is complemented by taking into account the respective market environment. He identifies prototypical countries and compares them with developed markets. Which markets evolve better than developed markets? Which ones require further development in basic external conditions? Kevin Stettner describes the status quo of e-grocery.
In this book:
- Consumer Behavior;
- Competitive Strategies;
- E-Commerce;
- Internet;
- Online Shopping
Table of Contents
1 Introduction
2 E-Grocery Business Framework
2.1 Business Environment
2.2 Business Models
2.2.1 Last Mile Delivery Options
2.2.2 Assortment Strategies
2.2.3 Other Business Design Possibilities
3 Review of Developed Markets
3.1 Market Conditions
3.2 Consumer Behavior
3.3 Competitive Strategies
4 Review of Emerging Markets
4.1 Asia
4.1.1 Market Sizes
4.1.2 Social Structure
4.1.3 Legal Framework
4.1.4 Availability of Enablers
4.1.5 Consumer Behavior
4.1.6 Competitive Strategies
4.1.7 Assortment Strategies
4.1.8 Last Mile Delivery
4.1.9 Other Business Design Possibilities
4.2 Europe
4.2.1 Market Sizes
4.2.2 Social Structure
4.2.3 Legal Framework
4.2.4 Availability of Enablers
4.2.5 Consumer Behavior
4.2.6 Competitive Strategies
4.2.7 Assortment Strategies
4.2.8 Last Mile Delivery
4.2.9 Other Business Design Possibilities
4.3 Latin America
4.3.1 Market Sizes
4.3.2 Social Structure
4.3.3 Legal Framework
4.3.4 Availability of Enablers
4.3.5 Consumer Behavior
4.3.6 Competitive Strategies
4.3.7 Assortment Strategies
4.3.8 Last Mile Delivery
4.3.9 Other Business Design Possibilities
4.4 Africa & Middle East
4.4.1 Market Sizes
4.4.2 Social Structure
4.4.3 Legal Framework
4.4.4 Availability of Enablers
4.4.5 Consumer Behavior
4.4.6 Competitive Strategies
4.4.7 Assortment Strategies
4.4.8 Last Mile Delivery
4.4.9 Other Business Design Possibilities
5 Prototypical Emerging Markets
5.1 China
5.2 Argentina
5.3 Czech Republic
6 Summary
Research Objectives & Key Themes
This paper aims to bridge the research gap regarding e-grocery developments in emerging markets by providing an extensive overview of current activities, major players, strategies, and market structures. The research evaluates various national markets and compares them to developed ones to identify prototypical patterns for success.
- Analysis of external market framework conditions (social, legal, infrastructural).
- Classification of business models within the global e-grocery sector.
- Evaluation of competitive and assortment strategies across diverse continents.
- Identification of key enablers and barriers for online grocery adoption.
- Derivation of prototypical emerging markets for benchmarking against developed economies.
Excerpt from the Book
1 Introduction
E-grocery, which is the distribution of groceries including all fast moving consumer goods such as fresh food or beauty and personal care items via the online channel, has become a global phenomenon over the last years (Kantar Worldpanel 2017b; Nielsen 2017b). It has changed the way many people shop for groceries and at the same time challenged established offline businesses while opening up new opportunities (Darley et al. 2010).
Consumers benefit from higher convenience (Cagliano et al. 2015), for instance since they do not need to take their children with them when buying groceries or when being physically handicapped (Morganosky and Cude 2000), a wider range of products (Ramus and Nielsen 2005), potentially better deals (Brynjolfsson and Smith 2000) and lower search costs (Agatz, Fleischmann et al. 2008). Additionally, in certain emerging markets, expats mention increased food safety and familiarity with foreign goods as major advantages.
To satisfy its customers, an e-grocer has to deliver both, service and product quality, enabling customers to simultaneously save time and still receive a high product quality (Boyer and Hult 2006). This results in major logistical challenges (Agatz, Fleischmann et al. 2008). However, companies benefit from a strengthened customer relationship (Dickey and Lewis 2009), thus higher customer loyalty (Wallace et al. 2004), the value of gathered customer data (Credit Suisse 2017) as well as typically attracting the most profitable customer groups (Lopez et al. 2014).
Within the stream of e-grocery, the focus of press, industry blogs, and many researchers is biased towards developed markets in Europe and North America (e.g. Punakivi and Saranen 2001; Agatz, Campbell et al. 2008; Morganti et al. 2014). However, until now, no paper has been published focusing on the development in emerging markets. Thus, this paper aims to fill the gap.
Summary of Chapters
1 Introduction: Introduces the topic of e-grocery as a global phenomenon, identifies the research gap regarding emerging markets, and defines the paper's primary goals and structure.
2 E-Grocery Business Framework: Elaborates on the external and internal factors, such as business environment, models, and logistics, that shape the operational scope of e-grocery businesses.
3 Review of Developed Markets: Provides a brief analysis of current market conditions, consumer behavior, and competitive strategies in major developed countries like France, Germany, and the USA.
4 Review of Emerging Markets: Offers an extensive, continent-based analysis of emerging markets, covering market sizes, social structures, legal frameworks, enablers, and competitive strategies.
5 Prototypical Emerging Markets: Identifies and analyzes three specific countries—China, Argentina, and the Czech Republic—as prototypes to compare their development with established markets.
6 Summary: Summarizes the study’s findings, including the categorization of markets based on their readiness for e-grocery and recommendations for future investment.
Keywords
E-grocery, Emerging Markets, Business Models, Logistics Performance Index, Last Mile Delivery, Assortment Strategies, Consumer Behavior, Online Retail, Market Structure, Infrastructure, Smartphone Penetration, Convenience, Digital Commerce.
Frequently Asked Questions
What is the core focus of this publication?
The work primarily examines the development, business models, and competitive strategies of e-grocery companies across 23 emerging markets, filling a significant research gap that has traditionally favored developed Western markets.
Which specific themes are central to this research?
Central themes include the evaluation of external framework conditions like social structure and legal environments, logistical hurdles, consumer behavior regarding online grocery shopping, and the strategic positioning of market players.
What is the primary objective or research question?
The primary goal is to provide a comprehensive overview of e-grocery activities in various emerging markets and to identify prototypical countries that can be compared against established developed markets.
Which scientific methods are employed?
The research is based on an extensive internet-based market study, utilizing secondary data from industry reports, World Bank indicators, and existing scientific literature to assess market maturity and characteristics.
What topics are discussed in the main part of the book?
The main part covers the conceptual framework of the e-grocery business, a detailed comparison between developed and emerging markets, and an in-depth look at specific prototypical countries (China, Argentina, Czech Republic).
Which keywords characterize this paper?
Key terms include e-grocery, emerging markets, market structures, competitive strategies, logistics performance, and consumer behavior.
How does the e-grocery market in China differ from other regions?
China is characterized by an exceptionally high proportion of pure online players and a tech-savvy consumer base, with the government actively supporting infrastructure to foster e-commerce growth, even in rural areas.
Why is Argentina considered a unique case in this study?
Argentina serves as a prototype for a highly localized market, where e-grocery activity is geographically concentrated in specific neighborhoods of Buenos Aires, driven by socioeconomic factors rather than nationwide expansion.
- Quote paper
- Kevin Stettner (Author), 2019, E-Grocery in Emerging Markets. Major Players, Strategies, and Market Structures, Munich, GRIN Verlag, https://www.grin.com/document/458870
