Main Topic: Normal Food Shopping for Chinese Consumers in the Wet Market

Hosts: Clyde Warden , James Stanworth

Chinese cuisine's emphasis on freshness drives consumer behavior in grocery shopping and the channels that supply them. Unfortunately, supermarkets and hypermarkets are commonly perceived as "modern" and wet markets as traditional, out of date, and fading away. In reality, wet markets are modern, up-to-date, end points of JIT (Just In Time) logistic systems. Western researchers and managers often overlook this important channel. In this episode, Antony meets up with Clyde and James for a walk through a typical wet market in Shanghai, enjoying the fresh food, kaleidoscope of colors, and variety of products--truly a one stop shopping experience. This is one of the most exciting retail landscapes we have ever experienced, yet it is off the map of Westernized retailers and researchers. Come to see the very successful wet market that is inherently modern by responding with an experience and products that customers want.

Sign describing logistics

Shanghai wet markets are located for ease of access. Hypermarkets, like Carrefour have countered with free buses to and from their stores, but daily purchasing of food in small fresh amounts creates high demand for many local locations. As in Taiwan, competing with fresh emphasis has been difficult for hypermarkets to deal with. This walk through shows what is so attractive about wet markets. Fresh food, open for inspection is the main advantage. Since so many people will be shopping for their daily food needs, other retailers open within and around the wet market. Ready to eat food (take away), dry goods, and even medical supplies and treatments are available.

In the West, an emerging emphasis on a more sustainable food distribution system can bee seen in books like The Omnivore's Dilemma and In Defense of Food by Michael Pollan . It is unclear how wet markets like this one score on such a goal, but it is clear that buying one's food fresh, touching it, building a relationship with stall owners, getting input on cooking techniques, and even choosing the chicken you want for dinner gets you closer to the whole process. Wet markets, like this one, are not necessarily totally local. In fact, the USDA scored big in Taiwan in the 1980s by helping US fruit exporters to link up with Taiwan's wet market distribution channel. This channel clearly has benefits and fits very well with the Chinese emphasis on fresh ingredients.  The servicescape is more colourful, the location more convenient, and the prices often lower, than the international hypermarkets we often read about. Contrary to popular belief, these markets are competing and present a stiff challenge to hypermarkets.

It's really about using all the senses to judge the product you are getting--sight, touch, smell . . . you are invited to participate, to get closer.

Photos:

• (1) Entrance to market. (1) Entrance to market.
• (2) Organized by product category. (2) Organized by product category.
• (3) Cleaning goes on constantly. (3) Cleaning goes on constantly.
• (4) Small shops surround the fresh produce area. (4) Small shops surround the fresh produce area.
• (5) Some shops have elaborate servicescapes. (5) Some shops have elaborate servicescapes.
• (6) Touching and digging are encouraged behaviors. (6) Touching and digging are encouraged behaviors.
• (7) Every purchase is inspected closely for freshness. (7) Every purchase is inspected closely for freshness.
• (8) A wide selection. (8) A wide selection.
• (9) Very alive. (9) Very alive.
• (10) A customer choose a live chicken, which is promptly prepared. (10) A customer choose a live chicken, which is promptly prepared.
• (11) Poultry processing area is walled off with transparent plastic. (11) Poultry processing area is walled off with transparent plastic.
• (12) The staff tells us they are inspected every three days. (12) The staff tells us they are inspected every three days.
• (13) An overview of the second floor, mostly fresh vegetables. (13) An overview of the second floor, mostly fresh vegetables.
• (14) Employee performance board. (14) Employee performance board.
• (15) Thanks for visiting. (15) Thanks for visiting.
• (16) The first floor is mostly fresh seafood and meats. (16) The first floor is mostly fresh seafood and meats.
• (17) Live fish prepared for customers. (17) Live fish prepared for customers.
• (18) A description of the logistics channel hangs in the middle of the market. (18) A description of the logistics channel hangs in the middle of the market.
• (19) Dry goods retailers tucked in around the market. (19) Dry goods retailers tucked in around the market.
• (20) A medical device promotion going on. (20) A medical device promotion going on.
• (21) A fruit shop with a colorful servicescape that plays on the bright fruit colors. (21) A fruit shop with a colorful servicescape that plays on the bright fruit colors.
• (22) Ready to eat take away duck near the market entrance. (22) Ready to eat take away duck near the market entrance.
• (23) If you were not a local, you would have walked right by and missed it. (23) If you were not a local, you would have walked right by and missed it.
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ConsumerCam:

Show Links:

• Wikipedia's comments show how wide spread these markets still are.
• What is a wet market? Great comment: a demographic that rarely shops there.
• Customer focus at its best. This market ready for Chinese New Year.
• SARS and Bird Flu drove people away from markets. However there is no evidence of anything more than a short term behavior change.

Bottom Line:

• Customers come every day.
• Fresh and healthy food is very important.
• Fresh means killed on the spot.
• Regulation and an inherent Chinese tendency creates a clean market.
• Stall holders aren't friends with customers but build relationships with discounts.
• Traffic peaks early in the morning and late afternoon.
• The market is easily accessable to the large local customer base.
• Carrefour, with comparable prices is very near. But customers still come here for fresh produce.