Non-Store Retailing: Unraveling Potential and Challenges in Emerging Markets

What is the current Landscape of Retailing in Emerging Markets?

The retail landscape in emerging markets is evolving rapidly. Traditional, brick-and-mortar retailing remains a formidable force, but there is a notable shift towards non-store retailing. This transition, powered by increasing digitalization, individualization, globalization, and a burgeoning middle-class, has led to a surge in e-commerce companies, home shopping models, direct selling platforms and teleshopping, thereby transforming the retail practices in these regions.

What Opportunities Exist in the Non-Store Retail Setting?

Non-store retailing presents a plethora of opportunities for both existing businesses and start-ups. Given the rising internet penetration and smartphone usage, e-commerce is the most apparent beneficiary. However, other formats like direct selling and teleshopping also have significant growth potential. Non-store retailing offers convenience, wide product range and price comparison opportunities, which appeals highly to the evolving consumer behavior. The businesses not only get a broader and more diverse customer base, but also benefit from the low overhead costs due to the absence of physical stores.

What are the Challenges for Non-Store Retailing?

While the potential for non-store retailing in emerging markets is enormous, there are notable challenges. Foremost among these is the lack of infrastructure and digital disparity; while urban areas tend to be well-served, rural areas often fall behind due to limited internet access. Trust also remains a major issue, especially in terms of online payments and quality assurance of goods. Integration of supply chain, logistics and delivery issues due to geographical complexities further compound the challenges. Policy’s ambiguity and rapidly changing regulatory rules pose another set of issues.