Monday, April 9, 2007

What, if anything, should be done to protect small, local retailers from the expansion of large chain stores throughout Thailand?

Given, the benefits of free market competition and customer discretion, the expansion of large chain stores should be legalized in Thailand. First, Keith Blois, who argues in his dissertation “Retailing in Bangkok an intriguing example of agglomeration” that the Thai government would not want to protect the retailers shows that some retailers want to operate together in large chain stores in Thailand. Furthermore, the retailers have learnt from large chain stores such as Lotus, big C and Top supermarket, which have executed customer satisfaction, sustainable competitive strategies and a service attitude toward customers. If government can keep a free-market system between large chains and retailers, the latter shall learn from free market competition such as a price policy, customer’s value and marketing policy. From the above the retailers will know what they have to implement, even though the retailers have a small sized shop. Considering this, the government shall support temporarily the retailers; however, they will lose their competition in the market if the retailer could not adapt market value. I am certain that these kinds of policy can not last forever for the retailers because customers want to support price-merit rather than other factors. Secondly, many customers shop in accord with their needs, wants and concerns. In other words, if the retailers did match customer’s needs, wants and concerns, customers will shop in large chains. One example is convenience which is a vital element for people who are busy. Again, this is a core value of customer discretion regarding customer interests. Although the government might give some disadvantages to the large retailers such as limited opening hours, or a tax burden, people in Thailand want to maximise their utilities in terms of time saving, money and even convenience. In conclusion, the government needs to find alternatives for the retailers such as self-survival strategies, cooperation with small and even large chain stores, service quality and good customer relationships too. Adapting to new trends itself has pros and cons; however, the root of economic growth should come across with retailers who are the economic blood in Thailand.

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