Agriculture Reference
In-Depth Information
MotherDairychaininIndia—startedinthe1970sanddevelopingbythelate2000sinto
adairykioskchainwith$200 millioninsalesinDelhialone(Reardonet al.2010).
hird,insomecountriestherearestate-ownedenterprises(SOE)thatmadeatransi-
tion from a staples stores or coop chains to SOE supermarkets. Such is the case of the
number-2chainsinVietnam(SaigonCoop)andChina(Lianhua,with$10billionin
salesin2009) today(calculatedfromdatafrom
www.planetretail.net)
.heyweremod-
ernizedandcapitalizedandre-launchedtocompeteinthissegment.hisindicatedthe
importanceofretailasamodernizationmechanisminthetransitioncountries.Someof
thesehavebeenprivatized.
Insum,thesheersizeandtheearlyincidenceofthestateandcooperativecumstate
sectors in initiating retail transformation has been neglected in the literature but has
been significant and continues in some countries today as a significant impetus to
modernization.
Second Stage of Transformation of Food Retail in the
1990s-2000s—Driven Mainly by the Private Sector
1
. The Rapid Rise of Supermarkets
heretailsectorinmanydevelopingcountrieshasbeentransformed—consolidated
andmultinationalized—ina“supermarketrevolution,”startingintheearly1990sand
continuing to present. This was firmly predicted to be impossible by the retail literature
inthe1980sandbefore.Itssurprisingtakeofinthe1990sisdocumentedbyabodyof
literatureemergingmainlyinthe2000s(e.g.,Reardonetal.2003,Traill,2006).
Inbroadstrokes,thedifusionofmodernfoodretailhasrolledoutinthreewaves
overcountries: (1) theirstwave,withtake-ofintheearly1990s,wasinEastAsia(out-
sideJapanandChina),SouthAmerica,SouthAfrica,andCentralEurope;theshareof
modernretailinfoodretailwentfromroughly5-10 percentin1990tosome50-60 per-
centbythelate1990s;(2) thesecondwave,inthemid-late1990s,wasinSoutheastAsia
(outsidetransitioncountrieslikeVietnam),andCentralAmericaandMexico;theshare
reachedsome20-50 percentbythelate1990s;(3) thethirdwave,inthelate1990sand
2000s,hasbeenmainlyinChina,Vietnam,India,andRussia.heshareclimbedto
some5-20 percentbyend2000s,inarapidrise.InAfricaoutsideSouthAfrica,mainly
in Eastern/Southern Africa, modern retail is just starting in some countries.
There has been a steep crescendo in modern retail growth in the third-wave countries
inthe2000s.Forexample,usingrawdatafromtheleadingretaildatasource,Planet
Retail,wecalculatedleadingmodernretailsales(forchainssellingfood)growthrates
in representative Asian countries in the three waves. The rates of growth vary over the
“waves” as one would expect: the East Asian “first-wave” countries (South Korea and
Taiwan)indeedshowslowermodern-retailsalesgrowthrates(acompoundgrowth
rateof11.2percentoverthe8yearsfrom2001to2009),thesecondwave(Indonesia,
Malaysia,Philippines,hailand)inthemiddle(acompoundgrowthrateof17.9percent
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