Understanding urban logistics and consumer behavior in São Paulo city

Abstract

Making deliveries of Fast-Moving Consumer Goods (FMCG) to small retailers in dense areas is a challenge. This has different levels of impact between high-income and low-income neighborhoods. They are more evident in megacities in developing countries, where there is a clear division between classes. On the one hand, governments do not attend low-income neighborhoods where there are many unsafe areas, lack of planning, and infrastructure that hinders FMCG deliveries. On the other hand, traffic regulations in high-income neighborhoods make delivery processes more complex. This paper aims to analyze urban logistics, comparing low- and high-income areas in São Paulo city taking into account local markets, consumer buying behavior, and the distribution process. To achieve this, a questionnaire in loco was applied to the stakeholders involved (consumers, small retailers, and carriers). The data were analyzed by using descriptive statistics. The results from small retailers, consumers, and carriers reveal that in their point of view the delivery of products is different between Base of the Pyramid (BOP) and high-income consumers (HIC). Factors such as ‘time window regulation’ and ‘infrastructure of neighborhoods’ hinder the delivery of products from companies to small retailers in regions of HIC, while in BOP regions small retailers' security and infrastructure are the major problems from the point of view of the actors. Consumer behavior poses an important factor to guide urban freight transport planning in both regions.