Crackdown On Tesco Lotus, Carrefour, Big C, 7-11

[cclub75]

They secure the owners of the small shope to vote for them and lose 6 million votes from the people who were looking forward to shopping in them. Thai logic, a contradiction in terms.

Not really : the minister just put a hold on the creation of new stores.

So :

-they keep the votes of the people who are already shopping in Tesco/Carrefour etc. (and you're right to say that they're happy with that)

-and they keep the vote of small retailers (who are really angry, we can understand)

After the election, of course, it will be "back to business". The small retailers will eventually loose.

The governement will draft a "cosmetic" regulation. Face will be saved. And more importantly : foreign investments will be saved...

The move is obvious : this is why the multinationals were very fast to say "khrap mai mi pen ha" to the lunatic minister. Because they know that it's pure thai bullshit.

[gharknes]

well if I was a big store and had invested loads of money in a partial finnished site I'd be on my way to court with a law suit.........I wonder how they would respond to that one ?

[unforgiven]

Such protectionist policies are only bad in the long run for Thailand.

I mean if you give planning permission to build a hypermart and then pull the plug before it's competition you're going to seriously damage the confidence of foreign investors.

True, but street vendors are the life blood of thailand...........look what walmart did to the USA

[Fire]

As much as I hate protectionism, this is good news for us!!!

This country will continue to remain cheap for us for a long long time...

And I will continue to shop at Tesco Lotus, Carrefour, Big C, 7-11 and avoid the small stores at all cost

[Fire]

They secure the owners of the small shope to vote for them and lose 6 million votes from the people who were looking forward to shopping in them. Thai logic, a contradiction in terms.

Not really : the minister just put a hold on the creation of new stores.

So :

-they keep the votes of the people who are already shopping in Tesco/Carrefour etc. (and you're right to say that they're happy with that)

-and they keep the vote of small retailers (who are really angry, we can understand)

After the election, of course, it will be "back to business". The small retailers will eventually loose.

The governement will draft a "cosmetic" regulation. Face will be saved. And more importantly : foreign investments will be saved...

The move is obvious : this is why the multinationals were very fast to say "khrap mai mi pen ha" to the lunatic minister. Because they know that it's pure thai bullshit.

We share the same opinion.

[astor]

I agree with thai government, (well done) these multinationals has knock it off.

We have to remember that the multinationals brings poverty not wealth.

[ianf]

I agree with thai government, (well done) these multinationals has knock it off.

We have to remember that the multinationals brings poverty not wealth.

Well said Astor, but we appear to be in the minority around here.

[LaoPo]

I agree with thai government, (well done) these multinationals has knock it off.

We have to remember that the multinationals brings poverty not wealth.

You must be an economist...I can't be wrong....can I?

You're right: let's 'kill' all multinationals...worldwide ...EUREKA...and everybody will become wealthy!

LaoPo

[Lone Wolf]

Never mind the consumer!

[thai_time]

I agree with thai government, (well done) these multinationals has knock it off.

We have to remember that the multinationals brings poverty not wealth.

I agree with you. There is no end to the rampant expansion of huge multi-national coporations into everyday life. I am not just talking about Thailand. I think the Thai governmant should be applauded for this action. No country in the west seems to want to stop the destruction of small scale shops and butchers ..etc. by the hypermarkets. Yes we will all get cheaper rice and sugar but at what cost. Most towns are losing thier identity and small busineses to unrelenting greed of these coperations. I wish other countries would take Thailands example and least try and acknowledge that this is a problem rather than just saying 'this is the capitalist way' and hiding thier heads in the sand.

[Captain Ron]

I agree that halting those projects already under construction is massively stupid. As farangs in Thailand, we really benefit from these large chains, mainly because we are treated fairly and equally at those places. I don't agree that the dynamics of these stores is exactly the same phenom as Walmarts in the US, but the part about damaging local retailers sounds similar. Walmart often competes with other quite organized and established large retailers, at least outside of small towns.

If they don't protect the local mom and pops they will dissappear just like walmart in the U.S. In the long run it's bad for the people. Just getting cheaper prices from big chains does n ot improve the economy on.ly the big businesses who become more infuential.

We love thailand because it's so different from the west-why would you want to change it.

No problem having some big stores just can't let them take over everywhere-they destroy the middle class.

Halting stores in progress is certainly unfair-I suspect it's a bargaining chip to get them to hold back on development.

Bottom line is there should be both. But let's keep Thailand as much like it is rather than making it become like the west we left.

JMHO

[Cuban]

No comments about the Western owned Cash & Carry's, where most Thai smaller "Mom & Pa" stores already buy from. The smaller villages have these M&P stores and cater to those without cars or can't travel to the next town to visit a daily/weekly market, these people make a good mark up on the Tesco prices - but they offer a local service like the corner shops the world over. Run a local slate etc.

I recently "discovered" the local independant supermarket run by the local Thai Cash & Carry (nextdoor), although not nice and shiny like Big C/Tesco etc. the product range was good and all priced. The basic items I know the price of when comparing 7-11 vs Tesco etc. were either a Baht or two BELOW the Tesco price. Nescafé cans for example 9 Baht each sold per can, in date.

Although some Tescos have good fish counters their meats are dire, Big C or local markets are by far better.

[Bangkokbob]

Such protectionist policies are only bad in the long run for Thailand.

I mean if you give planning permission to build a hypermart and then pull the plug before it's competition you're going to seriously damage the confidence of foreign investors.

This policy is no different than Japan's where I live. In some areas of Japan, large Japanese retailers are stricted to protect the small ones. But foreign large retailers are almost non existent. This policy hasn't hurt Japan. Most of the large retailers in Thailand like 7-11 are Japanese, their goal is to sell Japanese products.

[cclub75]

We love thailand because it's so different from the west-why would you want to change it.

We don't want to change it : Thai people want to change it.

Wake up : almost every human on this planet would like to drive a car, buy a mobile phone, eat processed food full of fat and sugar, and... do shopping in big malls.

It's a pitty. I know. From a ressources point of view, it's not sustainable with 2.6 billions of Chinese and Indians who are knocking at the door... Yours.

That's a fact.

On which moral base, you could forbid chinese and indians to have the same lifestyle than... you or the majority of US people for instance ?

So Thailand, nostalgy, rice fields, buffalos, up country... I like it too. Very much. But more and more, you will have to forget it.

[digiquix]

A few things that come to my mind:

-----------------------------------------

* The government is seeing a large displacement to the micro economies and is

going to do something to ease the transition. Displacing a large chunk of thailand's micro economies too quickly would in fact hurt the economy simply because too fast of a change and too little resources to cope with the change. In the short run, this isn't a bad thing especially when

things are slow to change in thailand. Maybe working on some new laws to help ease the transition.

- New taxes

- New fees

- New laws to govern how the fees/taxation work for the displaced economies. *

I hope to see that the government somehow figures a way to have special licenses/fees attached to the larger companies in this specific space to help displaced families/economies transition. Maybe come out with a reasonable buyout plan or socio-economics development plan from the fees that come from this sector back and back into the displaced economies.

* There may be some potentially new bribery channels being created. Some parts of the government is playing hardball. (I'd like to think that this isn't happening) Unfortunately, this would be the reality of life especially when you see a large company with deep pockets trying to move into your land and sell stuff to your people that your own people made.

- Paul

[rossigee]

I don't think it's a bad thing to say 'hang on a sec, things are going a bit quick for us - you foreigners have come in and are buying up land in every chonabot in the country, putting up 7/11s - give us a sec to make sure certain lines aren't being crossed (i.e. make some basic regulations) then we can carry on from there'. I don't think they'll be able to pull the plug on those they've already approved, and an impromptu week off an a few construction projects isn't really going to hurt anyone.

I like the 7/11s, and some (not all) of the family-run corner shops in my area and I use both equally.

[rossigee]

Oh, by that I mean that Samui is a disgrace - there are at least two 7/11s on several of the streets. *Some* regulations are needed. It shouldn't be too hard to work out the details.

[Mosha]

While back home in the UK my sisters home town is campaigning to stop Tescos building there, Ossett in West Yorks. Although they promised to create about 200 jobs a survey showed it would cost 500 jobs in the area. Do we know what kind of effects these places have on the local small businesses. I don't need large supermarkets for my "farang" stuff. There are at least a couple of family run stores in a small city like Ranong that hold those things.

Regards Steve

[Dakhar]

Question:

Why does Big C and Tesco Lotus do so well in Thialand. Obviously they do so well under Thai support. It is not like there are so many farangs here that they alone support these stores.

So the Thais have voted already with their wallets.

Nahh, I think officials are just holding out for a little more extra.

[wolfmanjack]

I agree with thai government, (well done) these multinationals has knock it off.

We have to remember that the multinationals brings poverty not wealth.

I am confused with this one. How does bringing over a hundred higher paying jobs, both during construction and after, to an area bring poverty ?

There is still competition on price between carrafour, Big C, Lotus, Makro, and the smaller shops. I can buy beer and whiskey for less at the local market. Also some veggies are less at the market and some are more. Besides my thai wife has not caught on to shopping for a whole week let alone a whole month and still does daily shopping at the local shops. hel_l the main market is only 2 kilos away and she will pay more at the shop in someones house because it is only 1 kilo away. Not much further on the motorbike but she won't go.

[john b good]

Just another case of "TIT" where "the more things change the more they stay the same.

[aonangkrabi]

These big companies have one advantage for the government: their stores are the only ones that adhere to the law that forbids the sale of alcohol aftermidnight.

If I want to buy a beer after midnight, the 7-11 refuses to sell, whereas the local retailers seem to be unaware of any law...

[taxexile]

wherever they (tesco , carrefour , big c. etc.) build a store , they also build a mall for other shops and services. big shops , small shops , restaurants and food outlets , one man market stall type operations all under one air conditioned roof.

in hua hin , within a few weeks of tescos opening , the local wet market , a filthy dark smelly place , was overhauled and re furbished , it is now clean and welcoming , and much busier than before.

still no posted pricing though.

that is the way to respond to competition , improve the poor services that created the need for tescos in the first place. not close them down.

its called fighting fairly ....... possibly a new concept in this country.

[Galong]

Most of the mom and pop shops I've visited are dirty and they don't have most of what I want. Now they're pissed off because they can't compete with shops that actually have a better shop with more stuff to buy? Come on man, it's business. If you ain't got the best shop, you don't get the most business... plain and simple. Quit crying foul and stock you shop better... geez.

[mr_lob]

This is a load of toilet!

Down here in Krabi we don't even have a supermarket yet! Can you believe it!? We have loads of top resorts, an international airport and no supermarket!

Looks like we wont be getting one for a good while yet

[bdenner]

Over the past 5 years we here in deep Isaan have seen a remarkable improvement in the quality and quantity of foreign foodstuffs available on our local store shelves, the same or cheaper prices. There are very few grocery items I need to buy from Testo etc. now as such my 200km round trip has been cut down to 3 week intervals rather than weekly.

Maybe if the major chain stores remove the grocery items from the shelves it would go along way to creating a compromise.

[Ricardo]

I don't know about the others, but Tesco are certainly major exporters from Thailand, sending back supplies to enable their UK-stores to carry a very good range of Thai products.

This ban, while probably just election-related farang-bashing, may meanwhile affect Tesco's willingness to buy from here, in the short-term.

[thaigene2]

TRT is playing the 'Nationlism' card that it seems to have so many of in the run up to the election. They're also fanning xenophobia for their own purposes.

But don't believe for a second that TRT is opposed to big foreign investors.

Remember Big Biz are the party's real constituents - not 'Issan Thais' as they'd have us all believe - so the Thai partners in these foreign companies (they all have to have a Thai partner - like Lotus, C-P Group, etc) are all part of this charade. TRT would do nothing to p*ss them off - unless they had a recent falling out. Now that would be really interesting!

Then again I seem to recall that Khun T and some of the other Thai biz families with the really long names have a well known history of double-crossing the non-Thai partners..so anything is possible I guess.

[naammanow]

Thailand Stops Expansion Of Hypermarkets

BANGKOK: -- The Thai government has told foreign hypermarkets and other large retailers to halt their expansion following protests by owners of small independent stores, according to a report by the Financial Times.

A Commerce Ministry official told the paper that the ministry's internal trade department had sent letters to 15 large retailers asking them to suspend their expansion plans until the government can adopt a new law governing the retail sector.

Deputy Commerce Minister Preecha Laohapongchana said the government would temporarily stop all new large retail stores, including those under construction.

The order would affect foreign operators such as Tesco Lotus, Carrefour, Big C and convenience store chains such as CP 7-11.

Large retailers are scheduled to meet government officials for talks next week.

-- kamcity.com 2008-09-08

You know whet gets me, why do they not ask the customers what they want; after all there are many more customers than suppliers? I’m sure which way my vote goes. Some of the first sentences I learned when I came to live here were: ”mai dai” “may mee” “mot leaw” “song mai dai” Rings a bell?? Well at least now at least one has many products to choose from in a comfortable environment and if one of the goods is not available, mostly another item is. Think most Thai CUSTOMERS also would opt for the later.

[kmart]

I agree with thai government, (well done) these multinationals has knock it off.

We have to remember that the multinationals brings poverty not wealth.

I am confused with this one. How does bringing over a hundred higher paying jobs, both during construction and after, to an area bring poverty ?

There is still competition on price between carrafour, Big C, Lotus, Makro, and the smaller shops. I

What is the problem? The big stores create lots of new jobs; improve food quality; freshness; and hygiene. And make local suppliers more efficient and professional; generally benefitting their consumers all round. The problem might be that they're foreign. Nevermind that local monopolies like PTT; EGAT; CP can run rings round their "customers" and circumvent fair trading, making price gouging; shoddy service; disease and environmental carnage a watchword. Actually getting what you pay for may go against the grain?