Retail chains chained<\/p>\n
The government's plan to prohibit big retailers from operating
\noutside provincial capitals could hinder the development of
\nmarketing services, which are vital to the program of enhancing
\nconsumers' appreciation of domestic products. The plan, disclosed
\nafter the first cabinet session on poverty alleviation early last
\nweek, appears to be an emotional and unproportional, rather than
\nrational and pragmatic, response to the concern for small
\nbusinesses.<\/p>\n
No one is denying the need to reserve particular areas of
\nbusiness for small enterprises to protect them from direct,
\nfierce competition with the big players. But when it comes to
\nmarketing services, an outright, blanket ban on big retailers or
\nretail chains to do business in regency towns could prove to be
\ncounterproductive. Such a measure runs against the market forces
\nand trends. It also will deny small local retailers access to
\nbetter retail technology and concepts, hinder retail development
\nat the expense of domestic manufacturers and tax revenue for both
\nthe central and local administrations.<\/p>\n
Compulsory partnerships, either through subcontracting
\narrangements for procurement or rental space in department stores
\nand modern shopping centers to small firms, may be more effective
\nin enhancing the development of small businesses. Such
\npartnerships would facilitate the transfer of new technology and
\nskills.<\/p>\n
The format and concept of retailing need constant adjustments
\nto the constantly changing ways of people's lives and needs,
\nbrought about by economic development and the dramatic progress
\nin telecommunications. Small retailers, let alone ministores,
\nobviously cannot afford to make the adjustments themselves.<\/p>\n
Domestic retailers, to remain competitive and capable of
\nattracting more customers, should always monitor demographic
\ntrends, changes in work patterns, lifestyles and shopping habits
\nof consumers, and tailor their concepts and strategies to the new
\ntrends and changes. Retailing is a continuous process of
\nadjusting the assortment of goods and prices to daily life and
\nthe purchasing power of a wide variety of consumers. For example,
\nas land costs in major cities have risen far beyond the
\npurchasing power of most salaried workers, housing complexes have
\ntended to move to the suburbs and retail outlets obviously should
\nfollow to retain customers.<\/p>\n
Because people's habits and needs reflect the income strata
\nand individuals' educational levels, there is always a wide range
\nof business opportunities for all kinds of retail formats, from
\nthe traditional, open wet market, roadside vendors and minimarts,
\nto supermarkets and mega department stores. Hence, regencies or
\ntowns outside provincial capitals can accommodate big, medium and
\nsmall retailers.<\/p>\n
Totally closing regency towns to big retailers will not
\nenhance the development of small retailers, especially if such a
\nmeasure is not supplemented by training programs specially
\ndesigned for small traders. Business partnerships are the most
\neffective means of helping upgrade the skills of small retailers.
\nSuch a scheme would be sustainable in the long term because the
\nrelationships would be mutually beneficial.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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