Mae Sai Retailers Rally Against Tesco Lotus Store

[george]

Mae Sai retailers rally against Tesco Lotus store

MAE SAI: -- Hundreds of protesters blocked a road in Chiang Rai's Mae Sai district yesterday to protest against the construction of a Tesco Lotus store.

The protesters, who were mainly small retailers and representatives of non-governmental organisations, gathered outside a market on Phaholyothin Road at Ban Pamuad, not far from the Thai-Burmese border.

They symbolically burned a coffin with "foreign retailer" written on the side.

The protest was organised more than a month ago, during which construction workers paved 4.8 hectares of land ready for the new Tesco Lotus branch, which is scheduled for completion next year.

Sukit Kunkongkapan, who heads the Mae Sai Border Retailer Shops Club, threatened to protest outside Government House if the government ignored local retailers' demands to stop the store construction.

He said he would submit a three-point demand to the Cabinet during its meeting in Phayao today. It would ask that the government support local business operators; stop the construction of the Tesco Lotus store; and adjust free-trade policies to lessen their adverse impact on local businessmen.

Silarit Kwangthong, the president of Tambon Wiangpangkam Administrative Organisation, told the protesters that the local administration could not stop the store from opening. "We can warn them if their construction plan is wrong,'' he said. Chalermpol Piansupap, an honorary adviser to the Uttaradit Chamber of Commerce, said that small retailers in Uttaradit had been unable to survive after Tesco Lotus opened a branch there. Like the Mae Sai protesters, they had tried to stop the store opening, but without success.

"They were forced to close down their shops and turn to other business,'' he said.

Darani Chanityakul, managing director of Mark Four Plaza in Phrae, said that since Tesco Lotus had opened a branch in Phrae, sales at Mark Four Plaza had dropped sharply.

She said local retailers were engaged in a fierce price war and could not make a profit on some products. "They sell soft drinks, for example, at a price lower than cost.'' She said some foreign investors were getting into the retail business by renting space from local retailers so

they didn't have high investment costs. Then they set up in a good location and took customers away from existing retailers.

She said a foreign investor had offered to rent her supermarket as well as areas of her department store to operate a retail consumer-products business, but she refused.

"We foresee that these foreign investors will monopolise the retail business and, in the end, local people will suffer by having to pay higher prices,'' she said.

She insisted that she would continue to operate her business even though she faced tougher competition.

--TNA 2005-06-13

[Thetyim]

Darani Chanityakul, managing director of Mark Four Plaza in Phrae, said that since Tesco Lotus had opened a branch in Phrae, sales at Mark Four Plaza had dropped sharply.

Darani would get all the Falang business simply by putting 2kg cheese on the shelf. It is a 340 km round trip to get it from Phitsanalok.

[Thetyim]

"They sell soft drinks, for example, at a price lower than cost.''

"We foresee that these foreign investors will monopolise the retail business and, in the end, local people will suffer by having to pay higher prices,'' she said.

Make up your mind.

Is she complaining about low pricing or high pricing

Or is she being racist ?

[PeaceBlondie]

Of course Tesco Lotus is a subdivision of some small company on some small island in the North Sea, but isn't the Thai company 'Tesco Lotus' a Thai company?

[The Dan Sai Kid]

I think the woman is quite right. No matter what country they are in large supermarket chains kill small businesses. They are anti-competitive, they run parts of their business at a loss to bring people in.

In Loei province the council refused to allow Tesco (let's call a spade a spade shall we?) permission to build a new supermarket for fears of destroying local businesses.

They operate un-ethical forms of business practice and get away with flouting all sorts of rules. eg. Did you know in the UK they are not policed by the environmental health? Unlike small businesses who are being smothered by EU regulations.

Good luck to anyone who wants stand in their way, though I fear unless you have the backing of a generous billionaire you are fighting a losing battle...

[Limbo]

Before 'Big C' came to Chiangrai about five Chinese-Thai families decided WHAT you could buy in Chiangrai and AT WHAT PRICE.

The opponents came with texts as 'buy only Thai products' and 'buy from Thai'.

As if the percentage of Thai products would be significant lower in the Big C than in the Thai-Chinese shops. As if Big C was not Thai owned for at least 51 %. As if Big C didn't pay more tax to the Thai nation as the Thai-Chinese did. As if Big C didn't create hundreds of decent jobs to hundreds of Thai people.

The Thai population of Chiangrai voted with their feet: 'En masse' they went to Big C. And they loved it! They saw products they never had seen before. They saw products of good quality and not more expense than they were used to pay for the low-quality Chinese imports of the traditional Chinese-Thai shops.

If you look at the arguments of the protesters, there is only one:

We are getting serious competition which is going to cost us money.

Their monopoly is threatened, that's why they cry.

The big malls are perfect: You can buy almost everything you need at reasonable prices in a pleasant and air-conditioned environment. And you can buy it all at once.

It is a general development which took place in the western world as well.

Also there the crocodile-tears flooded.

The 'Tante Emma'-shops as they were called in Germay, the 'buurtwinkels' as they were called in Holland (I don't know the English name), they didn't know how to react. Chains like Seven/Eleven did: choosing for an additional assortiment to the big malls.

Times change: people have cars now and less time. And refrigrators to store what they don't eat the day they buy it.

They can do the shopping for a week in one hour where they needed seven hours before.

[Limbo]

I think the woman is quite right.  No matter what country they are in large supermarket chains kill small businesses.  They are anti-competitive, they run parts of their business at a loss to bring people in.

They operate un-ethical forms of business practice and get away with flouting all sorts of rules.  eg.  Did you know in the UK they are not policed by the environmental health?  Unlike small businesses who are being smothered by EU regulations.

... a worryful Mr. Grant explained to us.

These are serious accusations Mr. Grant.

The last decades a lot of new regulations concerning (for instance) handling of food have been introduced. By national health departments mostly. European regulations concentrate mostly on the production side of goods.

To keep their license many improvements (for instance concerning hygiene) were forced upon shop-keepers, is that what you mean?

Large supermarkets don't 'kill' small businesses.

Large supermarkets however force small businesses to adopt to changing consumer behaviour.

As a consumer I am very happy with the new situation. Many older small shop keepers probably not. And specially the (mostly Thai-Chinese) owners of middle-sized supermarkets not.

----------

Good luck to anyone who wants stand in their way, though I fear unless you have the backing of a generous billionaire you are fighting a losing battle...

.... Mr. Grant went on.

Do you mean the village people who were trucked in to demonstrate, gor a free cap, a meal, some bottles of Mekong and 50 Baht each?

Or do you mean the organizers of this rally who at the same time were prepared to stop all protests for a certain nice amount of money?

Could you be more clear? Thank You!

[TokyoT]

I think the woman is quite right.  No matter what country they are in large supermarket chains kill small businesses.  They are anti-competitive, they run parts of their business at a loss to bring people in.

In Loei province the council refused to allow Tesco (let's call a spade a spade shall we?) permission to build a new supermarket for fears of destroying local businesses.

They operate un-ethical forms of business practice and get away with flouting all sorts of rules.  eg.  Did you know in the UK they are not policed by the environmental health?  Unlike small businesses who are being smothered by EU regulations.

Good luck to anyone who wants stand in their way, though I fear unless you have the backing of a generous billionaire you are fighting a losing battle...

<{POST_SNAPBACK}>

While I can agree with the basic statement that large supermarket chains kill small businesses. I can not however agree that it would be justifiable to stop Tesco Lotus from building the new store to provide protection to these small businesses if they are showing no signs of improving the level of products and services they supply to the customers. Never forget the golden rule – “The customers rule”

When looking at the case of this killer stores in Thailand I find it hard to take any position that would prevent them from building more and more stores all over Thailand. The existing stores simply are not moving in any pace to provide a better level of products to customers. While the large stores certainly have price advantage issues. I think the biggest benefit to be had by the Thai population is drastic increase in the products that will now be readily available.

[maerim]

When looking at the case of this killer stores in Thailand I find it hard to take any position that would prevent them from building more and more stores all over Thailand. The existing stores simply are not moving in any pace to provide a better level of products to customers. While the large stores certainly have price advantage issues. I think the biggest benefit to be had by the Thai population is drastic increase in the products that will now be readily available.

I quite agree small stores and shops are on the way out here one of the reasons is the superstores another is the landlords grip on the properties here they can do what they want with impunity.

My wife has a shop, the rent has been increased twice in 18 months of course no improvements to the place one lady, a pork butcher died recently of dengue fever ( see Chiang Mai mail ) I am not surprised, the market is filthy.

The big stores are at least hygenic, cool and well lit parking is free they take credit cards with no surcharge and I like shopping there as does my wife.

It is a fact of life love them or loathe them they are here to stay so the detractors and the protesters had better get used to them quick.

[Rinrada]

Of course Tesco Lotus is a subdivision of some small company on some small island in the North Sea,      but isn't the Thai company 'Tesco Lotus' a Thai company?

<{POST_SNAPBACK}>

Believe TESCO Lotus is 100% owned and run by Tesco.

The lotus part/name was an offshoot of the C.P.Group (shrimps to go)and they still supply the "shop"with a few goodies ...chooks,vegs and fruit etc.

They only keep the "Lotus"name to give the impression that it aint completly "foreign"

Also now that Tops (again....farang)are hooking up with Waitrose and m&S are looking at adding to their portfolio its only a matter of time before we will have Asda (Wal Mart)Morisons (safeways)and maybe even a couple of Budgens.

[Donnyboy]

Also now that Tops (again....farang)are hooking up with Waitrose and m&S are looking at adding to their portfolio its only a matter of time before we will have Asda (Wal Mart)Morisons (safeways)and maybe even a couple of Budgens.

<{POST_SNAPBACK}>

Let them all come and open I say, hopefully, we'll get some good price wars going and more employment for the Thais. Might be alot less crowded at Tescos on the weekend too!

[naammanow]

Instead of asking the shopkeepers, why not ask the customers what they want? I am sure their reply will be, a definitely YES; please let them built and come and the sooner the better.

[loong]

Darani Chanityakul, managing director of Mark Four Plaza in Phrae, said that since Tesco Lotus had opened a branch in Phrae, sales at Mark Four Plaza had dropped sharply.

Prior to Tesco Lotus opening, Mark four Plaza ( a very grand name, not reflected in reality) had the monopoly on one-stop shopping in Phrae. Now they have competition and will have to smarten up their act. The Mk 4 is very old fashioned and the competition will do it good.

Tesco Lotus in Phrae is relatively small compared to in most cities and doesn't carry anywhere near the range as in Bangkok, Pattaya etc. However is pleasant and welcomed by most locals.

Mark 4 , wake up and give your customers what they want.