Retailing Environments in Developing Countries

By Allan M. Findlay; Ronan Paddison et al. | Go to book overview
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Chapter three

Impediments to progress in retailing in developing nations
Saeed Samiee
Introduction
The role of marketing in economic development is a crucial one. If marketing is defined as the delivery of goods and services from manufacturer or producer to the user or consumer, then any improvement in the standard of living of a society must be channelled through its marketing system. Therefore, channels of distribution must have the capability to accommodate timely and efficient flows of goods and services that improve a society's standard of living. But distribution functions represent portions of marketing that are complex, tradition bound, and cannot rapidly be changed. Additionally, distribution functions and institutions are adaptive to the demands placed on them by the system, but are subject to environmental constraints.There are a host of conditions that impede development, research, and analysis of institutions within the distribution network in developing nations. They include economic, cultural and life-style, government regulations and controls, scarcity of information, and others. The objective of this study is to discuss influences upon retailing and provide some guidelines for examining retailing and retail institutions in developing nations.Because of the inherent dependency of retailing and economic development, it is important to make a distinction between varying levels of development. In this study developing nations are categorised into three groups:
1. The very poor without much financial backing or prospect of near-term development (for example, many African nations).
2. Those with financial resources (for example, oil) striving to develop the nation as quickly as possible (for example, many Middle Eastern nations).
3. The newly-industrialising nations (Argentina, Brazil, and so on).

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