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Consumers who participated in our focus groups very rarely used credit cards. This is the wrong way to evaluate emerging consumer characteristics. Even though emerging consumers may have a relatively homogenous profile in terms of demographic and socioeconomic variables, their behaviors can be differentiated by psychographic variables that range between two extremes: practicality-control-traditionalism and emotion-impulse-innovation. Some emerging consumers have incomes that enable them to stock goods at home and experiment more with different products and stores. Others focus on basic needs, and tend to stick with familiar brands and stores.

Classic marketing value drivers such as place, product assortment, price versus value, people, and services were examined along with selected ratios from the Strategic Resource Model, a long-standing method for evaluating operating performance in the retail industry. The results of our analysis were consistent with the six myths we uncovered in focus groups and secondary research. They reveal much about why and how small retailers have retained a strong market share.

First, most small retailers have a stronger value proposition for emerging consumers than do current supermarket competitors. Location is one of the compelling value propositions small retailers offer emerging consumers, especially for daily shoppers. But other factors keep emerging consumers loyal to their local shopkeeper. What emerging consumers do care about is hygiene, and most sole proprietors we talked to were careful to provide it.

Traditional stores and self-service retailers know how to optimize the mix of products for their micromarket, offering only the main categories, brands, and sizes their unique customer base demands. In most countries, leading brands dominate this assortment, especially in the traditional stores, where approximately 80 percent or more of the SKUs are first-tier brands, compared with 60 to 70 percent of the SKUs in chain stores which stock comparably more value brands and private-label products.

In many countries, the smallest size of powdered laundry detergent available in large chain supermarkets is grams. Small retailers commonly carry sizes as small as or grams.

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In categories that matter greatly, such as fresh foods, street vendors trump supermarkets by offering better prices because they can buy direct from farmers, and by lowering prices over the course of the day. Emerging consumers also appreciate that the open-air retailers offer several grades of fresh products, at different stages of maturity, whereas supermarkets offer only the highest grade.

Local shopkeepers also benefit from their personal touch. We interviewed many shopkeepers who claimed to recognize, even know by name, more than 60 percent of their customer base. Most said they shared neighborhood news with their customers and many made it a point to greet and talk with nearly every customer who entered the shop, inquiring after their families. Second, small-scale retailers have a sustainable business model predicated on a strong value proposition for emerging consumers and a business model centered on the quick conversion of inventory into cash.

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Small businesses operate completely differently than large chain stores. They focus on cash flow; their concern is whether they can cover their costs each month and have money left to replenish inventory. As a result, they typically do not manage according to such metrics as return on invested capital, sales per employee, or inventory turnover. That said, standard analytical frameworks that apply to modern retail stores are useful to highlight some distinct advantages of the small-scale retail business model.

We found that the monthly gross margin return on inventory for small shops is more than double that of large chain supermarkets. See Exhibit 2. Even if small retailers lack sophisticated inventory management tools, they commonly receive help from distributors and direct-delivery manufacturers, so they can keep accurate records and determine appropriate order size. Yet inventory management is not the secret of their resilience. There is a lower risk of theft, and evasion of employment and other social taxes is easier since there is little threat of a family member filing an employee grievance.

However, even if informality were totally eliminated, only truly poorly performing traditional shops would fail. The stronger ones would simply absorb the costs of operating according to formal business rules by raising their prices. Small retailers can also save on such general expenses as security, cleaning, marketing services, and administrative costs, which account for 3 to 10 percent of sales for larger chain retailers, because store owners or employees handle these tasks themselves.

Energy costs are low since there usually are no air conditioners or large banks of refrigerators and freezers in the small stores, and lighting is kept low. One well-known chain in Argentina reported operating expenses as 32 percent of net sales — more than double the 14 percent observed at selected small-scale retailers.

One is to target subsegments of emerging consumers in certain geographic areas, and to develop a business model that can be replicated in an extended network of stores. Small retailers in Latin America have proved they are formidable competitors. Our study shows that they have a good business model — one based on efficient inventory management, low operating costs, and attention to the daily purchasing needs of emerging consumers and their personal preferences. Retailers that try to open new supermarkets closer to target neighborhoods but use modern retail formats are likely to have lower gross margins and higher costs.

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Supermarkets can also address the concerns of low-income consumers who feel intimidated when they shop in those stores. The value proposition of the small stores is to make products accessible, and to offer friendly, helpful service. Large stores can do this better than they do. Respectful and supportive treatment of low-income customers goes a long way to getting them to return regularly. Just as in the case of large retailers, consumer-goods companies face significant challenges to profit from serving emerging consumers.

Typically, manufacturers have reacted to this opportunity by adjusting their value propositions and reconfiguring their business models along three dimensions, each representing increasing business transformation.

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The transformation can be company centered and product centered, affecting important variables like price, package size and design, and branding. This involves repositioning of products and brands as well as adjustments to promotions and distribution. Or a specific consumer segment can be targeted, which requires a redesign of product attributes, production, and distribution. Significant business process change is introduced through changes in business objectives, performance metrics, and channels.

In some cases, this could lead to acquisitions. A third route is redefining the entire industry value chain. Supply chain relationships may change or be eliminated. Major production and technology changes may be introduced. This can lead to strategic business transformation. Whether the company is a retailer or a manufacturer, these initiatives represent an important shift in the paradigm for serving low-income consumers.

Companies that successfully make this shift not only are likely to profit from their new business models, but also will be making an important contribution to the economic growth and social welfare of emerging nations in Latin America, and around the world.

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The council, which includes a group of major retail leaders in Latin America, devotes itself to studying issues of relevance to the retail industry in the region. The primary qualitative research used four focus groups conducted in each country for a total of participants.

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Target participants were emerging consumers and women who typically make the bulk of household purchases in the food, beverage, personal care, and cleaning products categories and shop regularly in at least one type of small-scale retail outlet. Secondary sources consulted included SES profiles from local marketing research associations and previously published, relevant consumer studies.

Fieldwork in each country included store checks and in-depth interviews with small retailers. Comparisons with the large-scale retail trade are based on selected players in each country for which financial information is publicly available. What could go wrong? Well, the toads became a major nuisance themselves, spreading across the continent and eating the local fauna except for, ironically, the cane beetle. To avoid blundering into disaster, the errors of the past should be acknowledged. The world recently witnessed the devastating effects of disease outbreaks, in the form of Ebola and the Zika virus — but those were natural in origin.

The malicious use of biotechnology could mean that future outbreaks are started on purpose. Whether the perpetrator is a state actor or a terrorist group, the development and release of a bioweapon, such as a poison or infectious disease, would be hard to detect and even harder to stop. Unlike a bullet or a bomb, deadly cells could continue to spread long after being deployed. The US government takes this threat very seriously , and the threat of bioweapons to the environment should not be taken lightly either. Developed nations, and even impoverished ones, have the resources and know-how to produce bioweapons.

And new gene editing technologies are increasing the odds that a hypothetical bioweapon targeted at a certain ethnicity , or even a single individual like a world leader, could one day become a reality. While attacks using traditional weapons may require much less expertise, the dangers of bioweapons should not be ignored. It might seem impossible to make bioweapons without plenty of expensive materials and scientific knowledge, but recent advances in biotechnology may make it even easier for bioweapons to be produced outside of a specialized research lab.

And the openness of science publishing, which has been crucial to our rapid research advances, also means that anyone can freely Google the chemical details of deadly neurotoxins. In fact, the most controversial aspect of the supercharged influenza case was not that the experiments had been carried out, but that the researchers wanted to openly share the details.

On a more hopeful note, scientific advances may allow researchers to find solutions to biotechnology threats as quickly as they arise. Recombinant DNA and biotechnology tools have enabled the rapid invention of new vaccines which could protect against new outbreaks , natural or man-made.

For example, less than 5 months after the World Health Organization declared Zika virus a public health emergency , researchers got approval to enroll patients in trials for a DNA vaccine. While humans have been altering genes of plants and animals for millennia — first through selective breeding and more recently with molecular tools and chimeras — we are only just beginning to make changes to our own genomes amid great controversy.

For instance, if gene therapy in humans is acceptable to cure disease, where do you draw the line? Many others lie somewhere in between. How do we determine a hard limit for which gene surgery to undertake, and under what circumstances, especially given that the surgery itself comes with the risk of causing genetic damage? And what about ways that biotechnology may contribute to inequality in society? Advances in biotechnology are escalating the debate, from questions about altering life to creating it from scratch. For example, a recently announced initiative called GP-Write has the goal of synthesizing an entire human genome from chemical building blocks within the next 10 years.

The project organizers have many applications in mind, from bringing back wooly mammoths to growing human organs in pigs. But, as critics pointed out, the technology could make it possible to produce children with no biological parents , or to recreate the genome of another human, like making cellular replicas of Einstein. In response, the organizers of GP-Write insist that they welcome a vigorous ethical debate, and have no intention of turning synthetic cells into living humans.

Since virtually all of biology centers around the instructions contained in DNA, biotechnologists who hope to modify the properties of cells, plants, and animals must speak the same molecular language. Since the publication of the complete human genome in , the cost of DNA sequencing has dropped dramatically , making it a simple and widespread research tool. Benefits: Sonia Vallabh had just graduated from law school when her mother died from a rare and fatal genetic disease. DNA sequencing showed that Sonia carried the fatal mutation as well.

But far from resigning to her fate, Sonia and her husband Eric decided to fight back, and today they are graduate students at Harvard, racing to find a cure. For example, researchers were able to track the Ebola epidemic in real time using DNA sequencing. And pharmaceutical companies are designing new anti-cancer drugs targeted to people with a specific DNA mutation. Entire new fields, such as personalized medicine , owe their existence to DNA sequencing technology.

Risks : Simply reading DNA is not harmful, but it is foundational for all of modern biotechnology. As the saying goes, knowledge is power, and the misuse of DNA information could have dire consequences. Finally, DNA testing opens the door to sticky ethical questions, such as whether to carry to term a pregnancy after the fetus is found to have a genetic mutation.

Recombinant DNA tools allow researchers to choose a protein they think may be important for health or industry, and then remove that protein from its original context. Modern biomedical research, many best-selling drugs , most of the clothes you wear , and many of the foods you eat rely on rDNA biotechnology. Benefits: Simply put, our world has been reshaped by rDNA.

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An increasing number of vaccines and drugs are the direct products of rDNA. For example, nearly all insulin used in treating diabetes today is produced recombinantly. Additionally, cheese lovers may be interested to know that rDNA provides ingredients for a majority of hard cheeses produced in the West.

Many important crops have been genetically modified to produce higher yields, withstand environmental stress, or grow without pesticides. Risks : The inventors of rDNA themselves warned the public and their colleagues about the dangers of this technology. Roles and Responsibilities of other School Staff. For emerging needs it may be appropriate to speak to the Learning Mentor with Safeguarding Responsibilities, who will decide whether she can deal with it herself or whether to refer to the Designated Safeguarding Lead DSL.

In more serious cases it may be more appropriate to speak directly to the DSL to agree a course of action. If staff members are unsure they should always speak to the Designated Safeguarding Lead DSL or the Learning Mentor with Safeguarding Responsibilities to clarify the situation and agree if any action is needed. Staff have a responsibility to record all concerns using the school concerns form Appendix 4 and forward this to the Designated Safeguarding Lead DSL or their deputy.

All concerns should be recording in writing as soon after the event as possible. All staff, including volunteers and temporary staff must have an understanding of how the school safeguards and promotes the welfare of children, including the school child protection policy, their role and responsibilities in this and how to report any concerns. Named Arboretum Primary School staff with specific safeguarding responsibilities. Other Key Safeguarding Contacts. Clinic Education Welfare Service. Ashtree House. DE23 8JX.

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