Supermarket Channel Research Articles

Traditional and Modern Distribution Channels for Vegetables in Vietnam: A Case Study in Hanoi City

This study aimed to provide a clear overview of the vegetable distribution system in Hanoi city which is dominated by traditional combined with the emergence of modern distribution channels, including supermarkets. The analysis was based on secondary data sources, a primary survey among 60 vegetable farmers, and in-depth interviews with other marketing system stakeholders including two agribusiness farms, four agricultural cooperatives, trade intermediaries (five collectors, three wholesalers, and three trading companies), and three supermarkets. Comparative and descriptive statistics were applied to get the full picture of vegetable distribution system, including traditional and modern channels. While traditional distribution channels involved various intermediaries, supermarket channels tended to be shorter due to direct producer-buyer relationships. In addition, while supermarket distribution channels focused on safe vegetables, including VietGAP and organic certified vegetables, there was no difference between safe and conventional vegetables in traditional channels. Therefore, producers may get 50% higher prices when supplying supermarkets compared to traditional channels. Recommended solutions to strengthen the distribution system of vegetables are to encourage the development of agricultural cooperatives, raise vertical integration, and develop sustainable cooperation among stakeholders in the supply chain.

Supermarket contracts, opportunity cost and trade-offs, and farm household welfare: Panel data evidence from Kenya

• Panel data models of the effects of supermarket contracting on farmers’ welfare. • Supermarket suppliers have higher income and dietary diversity than traditional channel suppliers. • Supermarket channel stayers sustain higher income gains than dropouts or newcomers. • Positive spill-over effects of supplying supermarkets on other sources of income. • Wider supermarket participation can improve household nutrition. While previous studies analyzed the welfare effects of smallholder participation in supermarket channels, little is known about the effects over time of supplying supermarkets on farm household incomes and diets, possible trade-offs, and opportunity costs of supermarkets on different income sources. We use panel data from smallholder vegetable farmers in Kenya to address these research gaps. The results show that supermarket contracts increase overall income by 61% and the dietary diversity score of nutritious foods by 4%, on average. Supermarket contracts also increase farm income without sacrificing income from other sources. In terms of participation dynamics, supermarket stayers and dropouts achieve overall income gains, but newcomers do not immediately benefit, due to their huge initial capital investment. Supermarket participation is not a panacea for all smallholder marketing and livelihood challenges but benefits farmers who can meet contractual requirements.

Measuring the access of Greek agricultural cooperatives to the supermarket channel

Measuring the access of Greek agricultural cooperatives to the supermarket channel

Measuring the Access of Greek Agricultural Cooperatives to the Supermarket Channel

Measuring the Access of Greek Agricultural Cooperatives to the Supermarket Channel

Market Segmentation and Dynamic Analysis of Sparkling Wine Purchases in Italy

AbstractThe Italian market of sparkling wines increases as volume and assortment (such as brands, appellations, typologies) mainly because of sparkling Prosecco consumption. We investigate the repeated purchase behavior of sparkling wines in two years within the supermarket channel through scanner data collected from a consumer panel. We propose a Hidden Markov Model to analyze these data, assuming an unobservable process to capture consumers’ preferences and allowing us to consider purchases sparsity over time. We consider multivariate responses defining types of purchases, namely price, appellation, and sugar content. Customers’ covariates influence the initial and transition probabilities of the latent process. We identify five market segments, and we track their evolution over time. One segment includes Prosecco-oriented consumers, and we show that loyalty to Prosecco changes strongly over time according to the region of residence, income, and family type. The findings improve the understanding of the market and may provide evidence to design successful marketing strategies. (JEL Classifications: C33, C51, D12, L66)

Supermarket procurement and farmgate prices in India

Abstract Supermarkets have gained in importance in the food systems of many developing countries, with profound implications for smallholder farmers. Several studies analyzed effects of selling to supermarkets on smallholder productivity and income. However, no previous work systematically analyzed effects of supermarkets on farmgate prices, even though prices are important determinants of farmers’ profits and livelihoods. Here, we use data from smallholder vegetable growers in India to compare output prices received in supermarket and traditional market channels. We also quantify farmers’ transport and transaction costs in both channels. Even after controlling for quality differences, prices are significantly higher in supermarket channels. Positive price effects are confirmed through hedonic price models and propensity score matching. Average effects of supermarkets on farmgate prices are in a magnitude of 20% or more. Higher farmgate prices are due to fewer intermediaries and lower transaction costs in supermarket channels. In the absence of binding contracts, supermarkets also need to pay higher prices to ensure regular supply of high-quality vegetables. These results suggest that the rise of supermarkets can contribute to increased market efficiency with positive effects on farmgate prices and revenues.

Whither the pin factory? Modern food supply chains and specialization in India

AbstractWhat is the relationship between smallholder participation in modern food supply chains and their degree of economic specialization? We investigate this research question by looking at whether there is a systematic relationship between whether a household grows crops for a supermarket chain—participation in the supermarket channel—and how concentrated among fewer crops are that household's total landholdings and its output. Using longitudinal data from India, we find that there is no relationship between whether a household participates in the supermarket channel and that household's Herfindahl–Hirschman index for land, but there is a robust statistically significant and negative relationship between whether a household participates in the supermarket channel and that household's Herfindahl–Hirschman index for output. These findings hold true at both the extensive margin (i.e., when considering whether a household participates in the supermarket channel) and the intensive margin (i.e., when considering how much of a household's marketed output is sold through the supermarket chain). This suggests that instead of fostering a greater degree of specialization, participation in modern food supply chains might lead to greater diversification.

Factors influencing the decision to buy fruits and vegetables from supermarket channel of consumers in Nha Trang

Vegetables are indispensable foods in people's daily meals. Today, with the improvement of living standard, the demand for fruits and vegetables increases not only in terms of quantity but also quality. Thus, the emergence of modern sales channels such as supermarkets and convenience stores for consumers’ greater access to clean, safe and convenient vegetables is inevitable. The objective of this study is to determine the factors influencing the decision to choose supermarket channels when buying fruits and vegetables of consumers in Nha Trang. Based on qualitative and quantitative research methods, this study proposes a model consisting of eight factors. The final result showed that 6 factors affect the decision of the consumers, including: Technical characteristics, convenient location, characteristics of the shop, promotions, health concerns and trust. This is one of the important bases in proposing solutions to attract and increase the number of consumers buying vegetables at supermarkets.

Characteristics of Business Models, Business Diversification and Price Segmentation Strategies of Wineries in the Wine Route of Baja California, Mexico

This study examined the characteristics of business models used by wineries in Baja California, Mexico wine route. It also identified strategies being used regarding price segmentation and business diversification, and how business diversification relates to production performance. The results showed a limited presence in the supermarket channel, vineyard/land and wine-making facilities/machinery being considered as the most valuable resources, a growing tendency of companies having lodging facilities, a low differentiation in key activities performed, high differentiation regarding revenue generation structure, three revenue generation clusters containing the majority of the companies, companies with a diversification strategy outperformed those with single business strategies in regards to case production during a five year period, and the price segments from $251 to $600 Mexican pesos for 750ml bottles of wine being the most popular ones. This study used a non-random sampling technique to collect primary data in the form of surveys and face-to-face structured in-depth interviews. A total of 65 companies, accounting for approximately 55% of the total wine producers in the area, were interviewed during the data 1-month data collection period (July 2018). Out of these 65 companies, 50 provided complete useable data.

Small-Scale Vegetable Farmers’ Participation in Modern Retail Market Channels in Indonesia: The Determinants of and Effects on Their Income

The rise of supermarkets in Indonesia since the end of the 1990s have been transforming the food retail sector and providing further market opportunities for small-scale farmers, in which most of Indonesia’s farmer falls into this category. The aim of this paper is to examine the supermarket participation and its effect on the well-being of small-scale farmers. We compare the differences between participants and non-participants in supermarket channels in order to explore the constraints on supermarket participation. By applying a treatment effects model which allows capturing the possibility of selection bias, we examine the factors that determine farmers’ participation as well as the effect on their income. The results show that younger farmers with higher levels of education, irrigated land, who have packaging equipment and storage facilities, and are located near paved roads, are more likely to participate in the supermarket channels. On the other hand, farmers who have sprayer equipment are more likely to participate in the traditional market channels. The effect analysis shows that small-scale farmer participation in the supermarket channels can boost their income.

Issues in Mutual Fund Distribution

This article provides an in-depth discussion of important issues related to mutual fund distribution. The first two topics are fund distribution channel characteristics and Rule 12b-1 fees and distribution. Distribution channel characteristics discuss direct channel, advice channel, retirement channel, institutional channel, supermarket channel, and multiple-share classes. Rule 12b-1 fees and distribution discuss the adoption of Rule 12b-1, Rule 12b-1 after adoption, current 12b-1 fees, issues with 12b-1 fees, and a summary of 12b-1 fees attributes. The remaining topics include directsold and broker-sold services, Rule 12b-1 fees and revenue sharing, revenue sharing issues, “soft-dollar” trading, distribution and flows, opacity and agency conflicts, expenseshifting agency conflicts, and intermediated distribution and portfolio managers.

Determinants and Effects of Small Chilli Farmers’ Participation in Supermarket Channels in Indonesia

The number of supermarkets in Indonesia is increasing, but small-scale farmers may be at risk of being excluded from these emerging marketing channels. Drawing on data from our survey of 600 small-scale chilli farmers in West Java, we examine the factors that influence farmers’ decisions to participate in supermarket channels. We use a treatment-effect model to examine the effect of supermarket participation on income, while controlling for the possibility of selectivity bias. Our results indicate that participation in the supermarket channel significantly increases farm income, even after we controlled for differences in education, chilli-farming experience, storage-house ownership, and the distance from the farmer's house to a bitumen road.

Influencia de la estrategia promocional sobre las ventas de la Marca de Distribución versus Marcas de Fabricante en los canales supermercado e hipermercado: Un análisis a partir del método de regresión por pasos sucesivos

The current study aims to research the promotional strategies targeted to the consumer of a single-product category. Primarily, it focuses on the study of the influence made by the promotional strategies of Manufacturer brands (MB) in the sales of the whole category in general and, in the Private Label (PL) in particular. We use the Method of Stepwise Regression to obtain a Promotional Mix suited for the category of energy drinks in both distribution channels, the hypermarket and the supermarket. With a significance level of 95%, the display of the leader MB is the promotional strategy that exercises the most influence in the same, that being an 86% in the supermarket channel and a 66% in the hypermarket channel. Likewise, the display of the leader MB is the promotional strategy that makes a greater influence in the sales of the PL, that being an 83% and a 64% in the supermarket and hypermarket channels, respectively. Keywords: Manufacturer brand, Private label, Promotional strategy, Promotional Mix.

Impacts of Supermarkets on Farm Household Nutrition in Kenya

Summary Many developing countries experience a food system transformation with a rapid growth of supermarkets. We analyze impacts of supermarkets on farm household nutrition with survey data from Kenya. Participation in supermarket channels is associated with significantly higher calorie, vitamin A, iron, and zinc consumption. We use simultaneous equation models to analyze impact pathways. Supermarket-supplying households have higher incomes, a higher share of land under vegetables, and a higher likelihood of male control of revenues. Furthermore, income and the share of land under vegetables have positive impacts, while male control of revenues has negative impacts on dietary quality. Policy and further research implications are discussed.

Following Up on Smallholder Farmers and Supermarkets in Kenya

In many developing countries, supermarkets are expanding rapidly. This affects farmers’ marketing options. Previous studies have analyzed welfare effects of smallholder participation in supermarket channels from a static perspective, using cross‐section data. We develop a conceptual framework and use panel data to better understand participation and impact dynamics. The analysis focuses on vegetable producers in Kenya. Participation in supermarket channels is associated with income gains. However, many farmers have dropped out of the supermarket channel due to various constraints. The initial income gains cannot be sustained when returning to the traditional market. Organizational support may be needed to avoid widening income disparities.

Selected Topics in Mutual Fund Distribution

This chapter working paper examines the channels through which mutual fund shares are distributed to investors: (1) direct, (2) advice, (3) retirement plan, (4) supermarket, and (5) institutional. The first four channels mainly serve individual investors. In the direct and institutional channels, fund distributors transact directly with investors in the sale and redemption of fund shares. In the other indirect channels, fund shareholders transact with funds through financial intermediaries. In 1980 the Securities and Exchange Commission adopted rule 12b-1, which emphasizes the role of independent fund directors in monitoring fund use of assets for distribution. The rule also addresses conflicts of interest between funds and fund advisers when funds pay distribution fees to grow fund assets. This chapter investigates whether introducing and adopting 12b-1 plans have benefitted shareholders and fund managers.This chapter provides an in-depth discussion of important issues related to mutual fund distribution. Two major topics are fund distribution channel characteristics and rule 12b-1 fees and distribution. Distribution channel characteristics discussed include direct channel, advice channel, retirement channel, institutional channel, supermarket channel, and multiple-share classes. Rule 12b-1 fees and distribution discuss adoption of rule 12b-1, rule 12b-1 after adoption, current 12b-1 fees, and issues with 12b-1 fees. A final major topic discussed direct sold and broker-sold services.The 12b-1 fee compensates brokers for initial sales of fund shares, ongoing servicing of fund shareholder accounts, and advertising and promotion expenses. Higher broker sales increase fund adviser assets under management (higher inflows) and adviser profits−primary motivations. Additionally, higher fund share sales increase broker profits, while higher broker fund share sales increase the size and cost of fund portfolio trades, amounts of broker commissions, and execution fees. Higher 12b-1 fees increase fund outflows, but higher share sales increase fund inflows. 12b-1 fees are transparent direct line-item costs in fund expense ratios that motivate using multiple share classes in direct and broker (and other intermediary) sold funds, including sales of fund shares to large individual and institutional investors. Payments reduce current fund net asset values (NAVs) and shareholder returns. Lastly, 12b-1 fees provide major agency conflicts with shareholder interests and returns.

Contractual arrangements and commitment in the Indonesian supermarket channel

Purpose – The aim of this paper is to examine the nature of contractual relationships between farmers and buyers in the traditional and supermarket channels, and to explore determinants of farmers' commitment in the two channels. Design/methodology/approach – The paper reports the results of a field study of 602 chili farmers in the largest chilli production area in Indonesia, West Java Province. The contractual arrangements were analyzed using descriptive statistics, while determinants of farmers' commitment were examined using factor analysis and Ordinary Least square (OLS) regression. Findings – The contractual arrangements between farmers and traders in both traditional and supermarket channels are characterized by verbal agreements. Price is the main aspect of the contract in the traditional channel, while grading aspects are the most important aspects in the supermarket channel. Trust and satisfaction have significant influence on farmers' commitment in the two channels, while the actual price has no influence. Practical implications – To improve farmers' commitment, traders should not only focus on absolute price, but also on building trust and satisfaction. Trust can be improved by providing payments on time and following through with their promises. Satisfaction can be improved by offering fair prices for farmers' products and providing quicker responses in handling farmers' concerns. Originality/value – This study compares the trade relationships between traditional and supermarket channels. It incorporates actual price and behaviour variables in the analysis of farmers' commitment.

The role of input vouchers in modernizing the fresh fruit and vegetable market in Turkey

AbstractContractual arrangements between farmers and traders aiming at providing input/credit in return for output selling have been widely studied in the literature on agricultural economics. Nonetheless, there is one issue, which is barely mentioned in the literature: how to enforce the contract terms when traders offer credit in cash rather than input advances? This article aims to describe an innovation in farming contracts, used by fresh fruit and vegetable wholesalers in Turkey, which involves a kind of private voucher system. Drawing on original data collected from wholesalers—a segment in the supply chain hardly covered in the literature—we investigate the factors determining contract adoption using a two‐limit Tobit model. Our results suggest that this private voucher system contributes to supply chain coordination and facilitates smallholder farmer participation in export and supermarket channels, which are growing rapidly in this developing country.

Supermarkets and agricultural labor demand in Kenya: A gendered perspective

Many developing countries are experiencing a rapid expansion of supermarkets. New supermarket procurement systems could affect farming patterns and wider rural development. While previous studies have analyzed farm productivity and income effects, possible employment effects have received much less attention. Special supermarket requirements may entail intensified farm production and post-harvest handling, thus potentially increasing demand for hired labor. This could also have important gender implications, because female and male workers are often hired for distinct farm operations. Building on data from a recent survey of vegetable farmers in Kenya, a double-hurdle model of hired labor use is developed and estimated. Farmer participation in supermarket channels increases the likelihood of hiring labor by 20%, and demand for hired labor by 61%. A gender disaggregation shows that positive employment effects are especially pronounced for female laborers, who often belong to the most vulnerable population groups. Rural employment generation can be an important vehicle for poverty reduction.

The fruit and vegetable marketing chains in Thailand: policy impacts and implications

PurposeThe main objective of this paper is to identify and study the marketing chains of fresh fruit and vegetables (FFV) in Thailand, the linkages of FFV farmers with supermarkets, and an evaluation of supermarket procurement systems. Another aim is to discuss the policies and implications relating to FFV and the connection of farmers with supermarkets in the context of Thailand.Design/methodology/approachThe paper uses both secondary and primary data. Public agencies' documents and published reports were used to describe retailing and FFV policy of Thailand. The supermarket managers and chain stakeholders were interviewed about the FFV marketing chains and supermarkets' procurement system. Policy issues were discussed with policymakers, and extracted from relevant documents.FindingsThe government has made various attempts to improve the FFV market by promoting both domestic and export markets simultaneously thus improving production efficiency. Supermarkets play important roles in connecting farmers to markets through direct procurement while improving cultivation practices of participating farmers in order to enhance quality of produce. A number of policy gaps still exist to protect the interests of the farmers in maximizing their benefits, and in the areas of participation between public and private sectors.Practical implicationsThe findings, which are derived from FFV stakeholders and comparative studies in developing countries, are that FFV policy gaps exist.Originality/valueThis paper can help policymakers, private sector and researchers to formulate appropriate policies in the future and catalyse the FFV marketing through supermarket channels while protecting farmers' interests.