Thai Business Logic

[thaiclan]

From a report in the business section of the Bangkok Post 14th November 2007.

"At a meeting to resolve conflicts between retailers and suppliers, brokered by the Thai Government Commerce Ministry, a spokesman for the Ministry said, "Retailers must not offer lower prices in an effort to beat rivals or to benefit consumers. Smaller retailers would be hurt most from discount sales, and while low prices would benefit the consumer in the short run, it could lead to overspending".

Can you think any other valid reason for shops not to compete with each other or offer goods at competitive prices ?

The Government now intends to pass new laws regulating the retail the sector. With this kind of attitude it makes one's mind boggle as to what restrictions will be included in these regulations.

[candoman89]

Sigh. Thai logic never ceases to amaze me. Thats why they call this amazing Thailand.

[Ski_Goong]

Sigh. Thai logic never ceases to amaze me. Thats why they call this amazing Thailand.

Well...since they can't compete with better service....they might as well compete on price

I LOOOOOOOOOOVVVVVVVEEEEEE THAILAND. 555555555555

Ski......

[Ulysses G.]

I recomended the Top North Hotel to britmaverick who is coming to Chiang Mai next week. One reason for recommending it was that they offer free airport pickup, but every time brit would ask them about picking him up, they would ignore the question.

Finally he asked me to go check with them and they told me that they don't do free pickup when all the other hotels are full because customers can't change their reservation.

Now THAT is Thai logic!

[ProThaiExpat]

It must be the same Thai logic that has new "shop houses" built next to rows and rows of shuttered ones or shop houses being built next to massive discount retailers that sell the same product at cheaper prices.

I do believe there is an ingrained "Thai cultural thing" about being a shop owner. So many live above, work a regular job and have mom ist in the shop below with a smidgen of merchandise to look after in hopes of someone buying something. Perhaps a couple hundred baht a day of sales is emotionally satisfying to a non-working senior Thai, but it certainly doesn't make financial sense.

Reminds me of the "mom & pop" owned fast food franchises in the west years ago which worked only when "mom and pop" didn't figure their long unpaid hours into the equation.

[OlRedEyes]

Yea. Just imagine how they're gonna make their nuclear power stations profitable

[tijnebijn]

Amazing Thailand keeps us amazed .

Next government in place and all the ' new regulations ' are of and

replaced with new ones .

[Dakhar]

The concept of a shop house is not new and can be found in many countries. In a world where gas prices are only getting higher and higher, the shop house concept is fairly good. But there needs to be variety, and this will only come through education. Currently the system is, a son or a tire store, marries and on a whim of independence open another tire store right next door from his parents. Then his brother does the same thing.... etc etc. It just keeps expanding without any variety... same junk, same lack of service. No knew concepts or products are ever introduced. Not too mention there also needs to be some level of manufacturing going on, otherwise there is no other forms of money generating machines... Just RICE!

Thailand has potential.... but I doubt it will ever be harvested due to govt policies.

Edited November 17, 2007 by Dakhar