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Low-income consumers at the base of the global pyramid paradoxically often pay more for their daily groceries than middle-income consumers in the same countries. Much of this paradox is due to the high fragmentation of the retail channel where they buy their goods, leading to high supply chain cost. Smartphone-based technologies can close this gap, reduce the cost of living for these low-income consumers, and continue to provide a livelihood to the millions of shopkeepers that serve them. Using granular transactional data of delivery vehicles, sales agents, and replenishment orders, the researchers study the impact of this rapid digitization.
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