Journal
JOURNAL OF AGRIBUSINESS IN DEVELOPING AND EMERGING ECONOMIES
Volume 13, Issue 1, Pages 36-52Publisher
EMERALD GROUP PUBLISHING LTD
DOI: 10.1108/JADEE-12-2020-0301
Keywords
Food; Shopping behaviour; Supermarkets; Small island developing states (SIDS); Fiji; Latent class cluster analysis
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This study aims to understand changes in urban Fijian food shopping behavior and its implications for the local food industry by identifying different consumer groups. Cluster analysis identified five distinct urban household clusters based on food shopping behavior, with the highest income cluster preferring to buy fresh fruit and vegetables from modern supermarkets rather than the traditional market. This growth in supermarkets raises concerns for local smallholder farmers who rely on traditional market channels. The study highlights the importance of understanding the transformation of the retail food industry and its impact on smallholder farmers in Fiji, providing insights for other small island developing states (SIDS).
Purpose The study aims to identify different consumer groups to better understand changes in urban Fijian food shopping behaviour and the implications for the local food industry. Design/methodology/approach The authors used a Latent class (LC) cluster analysis of survey data from 1,000 urban Fijian households to identify unique consumer segments based on household food shopping behaviour. Findings Five distinct urban household clusters were identified based on food shopping behaviour. The cluster with the highest income level spent significantly lower amounts on fresh fruit and vegetables (FFV) at the main traditional market, preferring to buy their FFV from modern supermarket outlets. Considering the vast majority of local smallholder farmers rely on traditional market channels to sell their produce, the growth and dominance of Fijian supermarkets are of some concern. Research limitations/implications Future research should consider repeating these types of detailed consumer surveys to better understand the implications of changes in shopping behaviour over time, and the role that key stakeholders can play in ensuring smallholder farmers is not excluded from the market. Social implications Smallholder-driven agriculture accounts for a significant share of Fiji's gross domestic product (GDP), so understanding how the retail food industry is transforming and how this is affecting smallholder farmers is critical to Fiji's social structure. Originality/value Research on food retailing and the role of the consumer is rare in small island developing states (SIDS), such as Fiji. Fiji has a somewhat unique set of circumstances. In the absence of significant foreign investment in food retailing, key factors such as urbanisation and rising urban income mean consumer preferences are important drivers of changes in shopping behaviour. The study provides insights into Fiji's changing food industry with implications for other SIDS, while contributing to the global literature in this field.
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