Reaching 50 million nanostores : retail distribution in emerging megacities

Abstract

With urbanization sprawling in emerging economies, retail opportunities abound. City structures, income distributions, and shopping patterns in emerging megacities are however very different from the ones we know from developed markets. One of the most dominant characteristics is the presence of millions of very small, family-owned and operated stores. We call these "nanostores". In this paper, we define and characterize these nanostores, and the associated logistics and channel strategies to reach them as the next opportunity in global retailing. We argue that structures and characteristics are fundamentally different of the developed economies organized big-box retail, and hence new research opportunities can be identified.

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