Trust: The Missing Dimension in the Food Retail Transition in Thailand

C Banwell,M Kelly,J Dixon,S-A Seubsman,A Sleigh

doi:10.1080/00664677.2016.1174101

C Banwell, M Kelly + Show 3 more

Open Access

https://doi.org/10.1080/00664677.2016.1174101

Copy DOI

Abstract

ABSTRACTThailand has experienced dramatic growth of large national and international modern food retailers, such as supermarkets, hypermarkets and convenience stores in large cities and regional centres in the last two decades. Nevertheless, Thai consumers continue to purchase perishables (fruits, vegetables and animal products) from fresh markets (wet markets, talat sot) contradicting predictions from analysts that modern food retail chains will rapidly replace fresh markets as the preferred venue for purchasing all types of foods. This paper examines trust in food retail systems as an under-explored dimension lying behind the continued patronage by Thais of fresh markets to purchase perishable items. It derives from a research program commenced in 2005 that includes fieldwork visits, interviews and questionnaires. In the context of the Thai food retail transition, we propose that trust affects relationships between consumers and (1) individual fresh market-based vendors, (2) the food products sold at fresh markets and (3) the food retail system more broadly. If fresh markets can be maintained in the face of sustained pressure from modern national and international food retailers, Thais will continue to use them. Meanwhile, trust is a relatively unrecognised dimension that is supporting the continued existence of traditional food retail formats.

Highlights

This paper examines trust in food retail systems as an under-explored dimension lying behind the continued patronage by Thais of fresh markets as a source of perishable items despite the fact that Thailand has experienced a spectacular growth of large national and international modern food retailers
Economists, and others, who believe that supermarkets will inevitably take over food retail due to their technological and marketing strengths have been surprised at the tenacity of fresh markets (Reardon, Timmer, and Minten 2012)
This paper describes contradictory trends relating to the role of trust in food retail

Summary

Introduction

This paper examines trust in food retail systems as an under-explored dimension lying behind the continued patronage by Thais of fresh markets as a source of perishable items despite the fact that Thailand has experienced a spectacular growth of large national and international modern food retailers. Despite the rapid growth and spread of supermarkets in Thailand, many Thai consumers continue to purchase perishables – fruits, vegetables and animal products – mainly from fresh markets, while processed and packaged foods are purchased mainly from supermarkets This pattern of behaviour supports the contention that a bifurcated retail system is developing in the country (Kelly et al 2014). This bifurcation, to some extent, expresses a financial divide in which poorer Thai consumers on low incomes are more likely to purchase fresh products from fresh markets, while wealthier consumers purchase most of their food from modern retail formats where the quality of perishables may be better, but prices are higher (Schipmann and Qaim 2011a).

Objectives

Methods

Findings

Discussion

Conclusion