Displacement Effect on Local Traders by Emerging Markets: Durban Townships

Machawe Victor Dlamini,Thokozani Patmond Mbhele

doi:10.6000/1929-7092.2019.08.121

Abstract

The propounded omnipresent of township malls and aggressive suppliersâ€™ expansion into the emerging markets epitomises the greater potential to create jobs and improve the economic transformation. However, it is important to note that these developments could trammel local tradersâ€™ economic prosperity than abrupt veracity of growth and symbiotic trajectory. While the encroachment of mainstream retailers into South African township markets offers business opportunities and economies of scope to consumers. The objectives which underpinned this study: to explore local township tradersâ€™ perceptions on the displacement effects from shared value-creation in emerging markets; and to establish the extent of the transformation of retail enterprise development and the displacement of local traders. The study used quantitative methods to analyse the data collected from 301 respondents to amass primary data. The study found that, while local traders appreciate the transformation and development of the townships brought about by shopping mall development, their businesses have been displaced by the emergence of township malls.

Highlights

The emerging markets resemble modern South African reconfigured economy with local urban township traders and mainstream or formal sector
It could be assumed that due to township malls development, entrepreneurs would seize the opportunity to open new stores in order to cater for the influx of consumers visiting the mall
This paper found that some owners closed up shop as they could not survive the increased competition

Summary

Introduction

The emerging markets resemble modern South African reconfigured economy with local urban township traders and mainstream or formal sector. The local township traders include micro, medium and small scale businesses in the townships, while the mainstream formal sector includes commercial large scale businesses. This paper seeks to establish the local township traders’ perceptions on the influence of emerging markets whether these markets tend to transform landscape of township operations or displace the small scale operations in the emerging economy. The distribution interlinkage in the extended supply chain enterprises includes the tier-based and lead supplier, the intermediary/distributor, the retailer and the consumer. The distribution volume determines the scalability between a small scale to the emerging markets and large scale in the mainstream economy. According to Strydom (2011, 164) traditionally, “suppliers used intermediaries to distribute their

Methods

Findings

Discussion

Conclusion