Thailand: Big business expansions forcing small traders out of business - Instablogs
Thailand: Big business expansions forcing small traders out of business
Jason , Ubon Ratchathani: Jun 15 2008
Made Popular Jun 16 2008
Thailand :

Thailand: Big business expansions forcing small traders out of business

Kamol Kamoltrakul, a business writer from Thailand, Photograph courtesy: Martin Argles

Here in Thailand, Tesco Lotus a chain supermarket store has been putting small businesses and mum and dad stores offside with their rapid expansion. There have been protests across the country in different cities where planned Tesco Lotus supermarkets are to be built.

Many of the protesters are worried about losing their lively hoods, losing the only income they have know to collect for many years. If the chain superstores are built in their area, they believe and more than likely it would happen is that, people will go to the superstores and stop using their little shops. This would obviously lead to them closing down.

There have been many voices for the retailer but also people against. Then three powerful men decided to have their say; they expressed their opinion and it was soon realized that Tesco didn’t like what had been said or written. They launched defamation lawsuits on two of the men for 100 million Baht or 1.6 million pound each and the other man for 1 billion Baht. One man was a former Thai MP, another an editor for a Thai paper and the last man a business writer for a newspaper. The former MP is now the vice general secretary of the Thai Chamber of Commerce, they said they would fight the retailer’s enormous damages claims. They could also face two years in jail.

Free speech campaigners are outraged by the “heavy-handed” tactics, which they believe are designed to intimidate and silence critics alarmed over the company’s growth in Thailand.

A spokesman for the South-east Asian Press Alliance (Seapa) said “Defamation suits of this nature and of such absurd proportions are clearly meant to harass legitimate criticism, intimidate independent media, and stifle discussions and debate over legitimate public concerns.”

The Thais have hit back at the retailer now, they have asked the retail giant to drop its law suit against the three men, and the chambers of commerce in the Northeast of Thailand said in a statement that; they disagreed with the legal action. They will hand a letter opposing the court action to the British embassy and the United Nations office in Thailand. They have also announced they will stop engaging in any activities with the company unless it withdraws the lawsuits.

The men have found some good allies in the National Union of Journalists’ campaign who are supporting them and also calling on Tesco to drop the lawsuits.

Sadly, I believe they are fighting a losing battle, not in having the lawsuits dropped but stopping the expansion of Tesco Lotus superstores.

I personally hardly ever go to little mum and dad shops, I always use the large retail stores as they are convenient, they have a broader range of goods and they are cheaper. I feel sorry for these small business people who know their small business as their only source of income, I really do.

As the world changes people have to try and keep up with technology and the ever changing business trends, if people don’t adapt they will be eaten up and spat out before they know it. It is cruel to see two or three generation shop owners closing their doors on family businesses. In the world of business nothing is for certain.

What do you think about big businesses forcing small retailers out of business across the world? I would like your feedback.

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1 Stars
Grace Calderon
Quezon City, Philippines
In most cases, big business does more good than harm. They pump up employment. They bring in more revenues that trickle down to more useful taxes. They make the locale look booming, thus enticing for other potential big business.

Smaller retailers have to do something to keep up with the challenge. They can’t race with big business neck-on-neck. What they can do is find their niche, and they will find their loyal following. There is always a marketing niche available for everyone, big or small.
1 Stars
Jason isaanstyle.blogspot...
Ubon Ratchathani, Thailand
Grace again an excellent response. Big businesses are good for communities, as you said they bring so much to the area that many don’t look at.

That’s is the problem here in Thailand is that not many Thais are business savvy enough to find a niche, they all have a small roadside eatery or a small convienience store.

The small operators just see it as their death, their source of income gone. They don’t look at the bigger picture and open up their thinking to possibilities it may bring them.
1 Stars
Grace Calderon
Quezon City, Philippines
I see the same situation here in the Philippines, as this country and Thailand have a lot in common, being both consumerist havens.

The reason why the city of Manila has expanded into Greater Manila Area or geographically known as National Capital Region (NCR) is because of enterprising big business.

While there is the price to pay in terms of the evils of metropolitan upgrade (congestion, traffic, pollution, etc), there too are the benefits in employment, more foreign investment, upgrade of the general standard of living, and all other accouterments of modern metropolitan life, replete with skyscrapers and malls all over.

Smaller business enterprises have no choice but to make their products and services better. Another good for the consumer that came out of it. The atmosphere has become competitive, which is all the better for the consumers. Small eateries just have to compete with KFC, Pizza Hut, McDonald’s, etc.

One success story is Jollibee Food Chain, a wholly Filipino-owned fast food chain. It is said that there is only one place on earth where McDonald’s isn’t #1, and that’s in the Philippines. Jollibee has also opened branches abroad, so it is the first Filipino fast food chain that has expanded out of the country.

Big business erases the parochial.
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