Almost anywhere I have gone in Thailand over the past few months, from the green hills of Mae Sai, to the swamps of the South, new shopping malls have been erected since my last visit. I can’t imagine that any of them are losing money.
I have recently read a number of articles, particularly in local, Thai-language publications, that are critical of the methods of the major international retailers who are trying to corner the market in every province in the country.
Today, there is news that an organised, nation-wide initiative has been created to push for tighter retail controls. A group opposing the Lotuses, Makro and Big Cs of the world has been formed.
Having worked in many of the areas of Southeast Asia where the convenience, economy and service of a Lotus or Big C are but a local pipe-dream, I wonder whose interests such anti-mall campaigning really serves. Thais, and Burmese, and Lao, and others, love big supermarkets, and malls, when they can afford to shop in them.
In fact, they love them even when they can’t afford to shop in them!
These foreign and locally-owned shopping centres are new sites of economic, social and political significance. It is no coincidence that Thaksin regularly attends events at shopping centres. Hankering after a bygone era of crowded alleyways and stifling street-stalls is part of an anti-prosperity agenda. People who are making more money often want the security, accessibility and efficiency of big malls. They vote with their wallets.
In this case, who will be foolhardy enough to stand in the people’s way?
7 responses so far ↓
1 Bangkok Pundit // Sep 7, 2006 at 5:51 pm
What surprises me is that mom-and-pop stores compete more with 7-11 and such franchise minimarts than they do with the large hypermarkets?
The Nation had an editorial on the issue last week and The Bangkok Post (link expired) had one a few days ago.
Once the election is over the issue will die down again.
2 Jakkrit // Sep 8, 2006 at 10:20 pm
What’re you talking about Nick! Major international retailers, like Tesco Lotus, are trying to corner in every ‘province’ of Thailand? That is not true. In Chiang mai, for example, Tesco are now taking over most of the local district markets already. You go to San Kampang, Hang Dong, or Mae Rim and you can still shop at different Tescos. So I rather say they are, in fact, trying to corner in every ‘district’ of the country. Agree?
3 Nicholas Farrelly // Sep 8, 2006 at 10:39 pm
Thanks Jakkrit!
Sometimes I am unintentionally a master of under-statement. You are right that the current wave of expansion does target non-municipal areas in many provinces. Koh Samui – in the Thai province that I know best – is, as you know, one current frontline of anti-Lotus/Big C campaigning. A few years ago, it had no foreign hyper-market retailers flooding its district level market with desirable consumer items.
So, yeh, I agree with you. District level centres are obviously a growth segment for Lotus and pals.
While I see the argument, I don’t completely agree with Bangkok Pundit that this issue will inevitably evaporate if/when the political situation calms down.
Deep-seated resentments are bubbling in many areas. Foreign retailers are but one easy target, and a free kick for other interests looking to score points for their base. The conditions that have led to this, admittedly minor, backlash are not, I’m afraid, going anywhere, anytime soon.
4 Bangkok Pundit // Sep 9, 2006 at 4:34 pm
Perhaps, I should clarify what I mean. The situation of foreign hypermarkets/retailers will not go away, but I believe it has been raised as an issue now because the election is coming up. The government will (or has?) be forced to act to alleviate some fears.
Further restrictions on the operation of such retailers won’t really help the situation as more and more people are shopping at such retailers as you point out. The situation won’t go away, but after the election it will die down again and drop out of the news cycle until it raised again in a year or so. The cycle will then repeat itself.
5 New Mandala » New Thinking, New Shopping // Sep 10, 2006 at 2:21 am
[...] Thanks for the comments and interest on my earlier post titled “Thais Love Tesco”. Further to the ideas that have been raised, it is probably worth highlighting one important way that the Tesco Lotus juggernaut markets itself to potential customers. [...]
6 New Mandala » Tesco, the coup and the retail revolution // Sep 28, 2006 at 4:37 am
[...] The BBC, the Telegraph and the Bangkok Post, among others, are carrying “crack-down” stories that highlight potential restrictions on Tesco and other foreign retailers in Thailand. Before the coup, I wrote about the uncertain position of large international retailers, particularly those seeking to open dozens of new stores in the far-flung corners of the Kingdom. The mega-store conglomerates were already under some pressure before the recent change to military leadership. [...]
7 New Mandala turns 3 // Jun 16, 2009 at 6:03 am
[...] commentator still regularly writing under same name – Bangkok Pundit (back in pre-coup September 2006). An honourable mention goes to Aiontay with a comment a few days [...]
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