Time to end this game of THAI MONOPOLY

[webfact]

EDITORIAL
Time to end this game of THAI MONOPOLY

CONSUMERS AND SMALL BUSINESSES HAVE LONG BEEN VICTIMS OF THE UNBRIDLED POWER OF BIG CORPORATIONS

BANGKOK: -- Users of the social media are up in arms over what they call |bullying behaviour by a retail giant. A blogger's revelations about an allegedly unfair deal between a small bakery and a massive retail chain has ignited concern that the latter's power in the marketplace is spiralling out of control. The worries are well-founded.

The same could happen anywhere: You successfully pitch a product to a big retail chain, but as part of the deal you must reveal your recipe and techniques. You acquire a loan to expand capacity and are poised to start production, but then you find that a nearly identical item is being produced by a different company under the retail giant's umbrella. You are told that your deal is intact, but that your goods will be sold at 200 upmarket branches, while theirs will be sold in 8,000 convenience stores.

The problem is that, while this might be unfair practice, it is not illegal. It seems that big businesses still get an easy ride from the Thai justice system. As such, cases like these hardly ever reach the public's ear. Disputes between small-time suppliers and giant retailers, or between mom-and-pop stores and leading chains, usually end quietly with victory for the big corporations.

But this time consumers have been alerted.

It is time lawmakers looked into this matter.

The country needs stronger legislation to control the enormous power of big corporations. Law enforcement must be effective and fair if it is to provide justice to all. But this issue has never been debated in any Thai parliament, whether elected or unelected.

To regain some control over the situation, political leaders must show vision, determination and the

courage to shun any vested interest. The close relationship between politics and business in Thailand has always led to conflicts of interest and abuse of power. The resulting monopolistic practices make victims of both the consumers and those businesspeople who are "outside the loop".

Rather than favouring corporate interests, laws should serve the wider community, including those who produce the "raw materials" on which big corporations depend. The law must also ensure that small suppliers are protected against the predatory practices of large conglomerates.

In other words, policies, laws and their enforcement must serve the "upstream" producers - including the farmers - as much as they do the large corporations "downstream".

In developed countries, authorities keep a close watch on big business since they know that healthy competition is a prerequisite for a strong, growing economy. When the big fish are allowed to eat all the minnows, serious problems occur. If large corporations use their economies of scale to undercut and prevail over smaller businesses, they end up in a position where they can dominate and dictate in the marketplace.

Consumers are often lulled into the trap, happy to benefit from cheap products but failing to see they will lose out from the lack of competition in the long run, as big corporations dictate the prices for both suppliers and buyers.

The bigger these giants grow, the less bargaining power consumers and suppliers have. Consumer protection becomes an uphill task. And in the long run, the country's economy suffers. Alerted to the threat, the Thai public is making its voice heard on the social media. It's time that our policymakers and legislators took this issue seriously too.

Source: http://www.nationmultimedia.com/opinion/Time-to-end-this-game-of-THAI-MONOPOLY-30259379.html


-- The Nation 2015-05-06

[givenall]

Two word fat chance

[canuckamuck]

or - Too late!

[jerojero]

Yes Thai legislators must act. And the laws will be upheld and enforced. Ya right! 555

[clockman]

This is called, Thainess. Unique in the world. And they are trying to export it. I think the days of Teflon Thailand are nearly over.

[shirtless]

what a joke never give your trade secrets to these corps the moment your contract expires they will copy your product,

[Crash999]

I would have more sympathy if the product was particularly original but it's just a bakery product. And the small Thai company copied the concept from the Japanese original, making it cheaper using local ingredients. The large retailer has made it much cheaper than that.

[toybits]

To many Human Trash. Much too Much!!! Thinking they can make a dent in the domain rich and beautiful.

[northernjohn]

what a joke never give your trade secrets to these corps the moment your contract expires they will copy your product,

That along with the fact that you should know how the product will be handled before entering the deal. Did your contract state 200 outlets or over 8,000?

This sounds to me like a proposition that could happen in any country in the world if the contract is not specific as to the way the product will be handled.

If you have sold the recipe to the large corporation they are free to do with it as they wish in any country. It is there property.

[butch333]

no chance for the owner of the small bakery , but as said he copy the receipt form a japan bakery , like many articles you can buy in thailand , land of copy , so the big copy the copy of the small . anyway , what about this law in thailand who say that you canot have exclusivity ??? still applicate or not ? what about the fact that the thai are loocking at your business and if they see that it work good , one month after you have a lot of them who make the same as you in the same street and near you as possible ? even if you try to expain them that if you have one cake enough for one and you cut the same in 10 parts , it ll be not enough for 10 people , but no way ,you speak to a wall . it's crazy but it's like this in thailand , no protection , so when they can take benefit they agree and when they lose they are not agree . business have 2 way , you canot win all the time . since now , with the politic of protectionism of the thai governements , they are under protection with their production , but if it stop and all the export goods stop to be under important income taxes , what will happend for their industries and compagnies ? this sis the problem of thaland - i can do but the others canot .

[Bluespunk]

"you find that a nearly identical item is being produced by a different company under the retail giant's umbrella. You are told that your deal is intact, but that your goods will be sold at 200 upmarket branches, while theirs will be sold in 8,000 convenience stores."

If it's anything like the Pepsi rip off EST, then the near identical copy ceases to be so once you taste it.

[Bakseeda]

cough, cough (clearing throat) If I knew you were coming I'd have baked a cake..........

[monkeycountry]

"you find that a nearly identical item is being produced by a different company under the retail giant's umbrella. You are told that your deal is intact, but that your goods will be sold at 200 upmarket branches, while theirs will be sold in 8,000 convenience stores."

If it's anything like the Pepsi rip off EST, then the near identical copy ceases to be so once you taste it.

Agree, even Thais don't like EST.

[monkeycountry]

Although I do not know if it covers bakery products, I assume it is possible to patent products in Thailand!

[Srikcir]

"about an allegedly unfair deal between a small bakery and a massive retail chain"

This is an alleged article of news.

READ THE FINE PRINT OF ANY CONTRACT.

If you don't like the deal, don't make it. If you don't understand the deal, don't make it. If you think a massive retail chain cares about your financial survival, go somewhere else.

[FangFerang]

The Wal-mart Syndrome.

[Cats4ever]

Some may consider that the deal between the conglomerate and the small business, in the first place, was not between equals. Honour runs second to the dollar.

[maidee]

this story is a week old ...

what the wife said: thai woman say japanese thing, she COPIED, had an idea, no patent, no lawyer, no businessplan ...

she go pitch her stolen idea to a big retailer, that than says, good idea ... thank you, see you !!!!!!!!!!!!!!

[Thai at Heart]

I would say that having to reveal your recipe is an unfair practice and he should never have released it.

The little guy needed to have a lawyer, but of course the big guy probably has standard terms and conditions, which is another aspect that needs regulation.

[elgordo38]

Two word fat chance

David will never win this battle Goliath has got him by the gonads.

[FlorC]

"you find that a nearly identical item is being produced by a different company under the retail giant's umbrella. You are told that your deal is intact, but that your goods will be sold at 200 upmarket branches, while theirs will be sold in 8,000 convenience stores."

If it's anything like the Pepsi rip off EST, then the near identical copy ceases to be so once you taste it.

Agree, even Thais don't like EST.

I like EST and I like it that my money goes to a thai company and not to those 2 big ones.

So are they talking in the OP about Farmhouse ?

[Katipo]

I loathe CP group. They epitomise everything that is wrong with corrupt big business.

[fgmr]

Perhaps the reason why these cases do not make the news is because that Thai media are afraid of losing their advertising revenue!

[Prbkk]

The robber barons have been doing this for decades. Their behaviour is ( at best) anti-competitive and in most countries their empires would have been broken up. They operate as cartels. Mexicans, of the headless corpse set, could learn from them . And they just get away with it: no matter which group of irrelevant groupies is in 'power'

[Baerboxer]

This is called, Thainess. Unique in the world. And they are trying to export it. I think the days of Teflon Thailand are nearly over.

No it's not unique to Thailand and nor is a Thai idea. Try researching how the big supermarkets have been treating their suppliers in the UK over the last 30 years.

Utter bullies.

[Baerboxer]

The robber barons have been doing this for decades. Their behaviour is ( at best) anti-competitive and in most countries their empires would have been broken up. They operate as cartels. Mexicans, of the headless corpse set, could learn from them . And they just get away with it: no matter which group of irrelevant groupies is in 'power'

The UK supermarkets ain't much better in the way they treat suppliers. And they've been getting away with it for years despite successive legislation. Simple, rock the boat and you don't get any more orders, and you're "blacklisted" by the others. Tasty - albeit a bad taste.

[rametindallas]

If you can't run with the big dogs, you'd better stay on the porch

You can't pee like a puppy if you wanna run with the big dogs.

[Jeffreyake]

I agree. authorities should strength up anti monopoly legislation. big retail chains, especially foreign ones, (Casino Group Thailand, for example), should be forcibly split. Not because of "human rights" or "fairness" or other BS, but because it's better for the economy to have ten small sellers than one big.

[BSJ]

I tasted EST cola once, never again. It tastes like a 4 letter word that rhymes with Hit.

There's no nice guys in a business deal. It's a battle ground to see who can win the most.

[Yunla]

I agree with earlier posters that this is a global problem, perhaps the biggest global problem of the 21st century. Massive predatory Corporatosaurus Rex stomping around and everything else hiding in the shrubbery.

Family businesses have existed since the very first settlements were built, a long time ago. We can actually state that the family business model has led to all the positive progress of the human race. Those little workshops and stalls have been the backbone of our entire civilisation. It remains to be seen what will become of said civilisation when the last small businessperson is gobbled up by C-Rex, but I think human progress will be the first casualty of it.