Fresh Markets v. Hyper Markets - Adam Richard Tanielian - Independent Study IIS-RU

8/9/2019 Fresh Markets v. Hyper Markets - Adam Richard Tanielian - Independent Study IIS-RU

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IIS-RU

Keeping FreshA Survey of Chiang Mai, Thailand Local

Markets

Adam Richard Tanielian

1/11/2009

Exploratory research is made into the opinions of local market workers regardingdevelopment and performance enhancements. The researcher and a partnercontacted 352 workers at 12 Chiang Mai, Thailand markets in-person to findopinions related to desires to change market atmospheres, marketing channeldesign, management structure, general business model. Multinational Corporatecompetitors and Thai partners lead the field in logistics, facilities upkeep, andmodern methodology. NGOs and government-sponsored initiatives, in additionto the Royal Sufficiency Economy projects in Thailand have helped protect somecommunities against the threats of globalization, but more development ofinfrastructure is necessary in urban and suburban zones to adapt to changing

consumer demands and competitor offerings. An empirical study helps suggestsome solutions to ongoing small business problems in Thailand.


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I. Introduction

Globalization in its most modern stages has affected locally owned and operated markets

in myriad dimensions. This newest age of integration of once-sovereign, impenetrable

domestic markets with new models of international trade is distinct from all previous

historical efforts in transcontinental, overseas, cross-cultural and international economic

cooperation, due in large part to unprecedented usage of evolving technologies. With few

exceptions, gone is the age of the horse and ox drawn cart, the junk ship, navigating by the

stars, and the carrier pigeon.

Today, transportation technologies make it possible for people to move goods and labor

around the world overnight, making trades of perishable items in between regions which

businesspeople would have once considered possible only in a fools or childs dream an

every day reality. Logistics, tracking and inventory technologies like RFID, laser barcode

scanners, computer databases and global positioning systems can assure 100% delivery,

proper handling of packages including measurements of humidity, temperature and vibrations

inside of containers, potentially ensuring zero loss of products anywhere on earth (eg Hezier

and Render 2008). Cell phones, intranets, the internet, electronic data interchange and

services like On-Star help coordinate the various aspects of operations within the

multinational corporation today, from raw material acquisition to delivery to the end-line

customer with speed, reliability and connectivity that even mid-20 th century International

Business Machines representatives could have only dreamed of.

Though many organizations profit from modern amenities, this present-day transition to

the interdependent international structure of production, distribution and consumption has notyet benefitted everybody. While modern expansion and changes in operations create

opportunities for companies like Wal-Mart, Tesco-Lotus, Carrefour, Big C and Makro, which

rely on high power, expensive models of operations as strengths in the competitive retail and

grocer sectors, globalization and influx of hypermarkets and superstores into the developing

world have posed serious threats to local sellers, street vendors, farmers markets and

independent small business owners who suffer weaknesses related to lower credit lines,

smaller revenue, and tight budget constraints when compared to large corporations.

Corporate expansion in retail and grocery is nearly synonymous with the demise of local

mom and pop shops worldwide, and as corporations try to push out and minimize their

competitions scope and range, new class and caste structures emerge within groups of

consumers and sellers.

The negative impacts of corporate expansion on the traditional Thai style open-air

markets have been detailed in dozens of news and academic reports since the 1990s.

Globalized corporations servicing local patrons with localized imaging and product

placement have threatened the smaller, less organized fresh markets () so much thatNGOs and government-partnered organizations have been created to help farmers and serve

local interests of adapting to expansion of the corporations in a growingly Westernized

Thailand (Sivarksa 2002). Many activists and protectionists would like to resist corporatedevelopment, though in reality, the only true pragmatic solution for committed Thai workers


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in the marketing channels is to adapt to a changing domestic Thai consumerpopulation which is not likely to reduce spending at supermarkets enough to halt their

corporate expansionary efforts, regardless of corporate nation of origin.

Research Purpose

Prior to changes in operations, the local markets must first understand what their

organizational profile is from an administrative standpoint. The organizations of gypsy-mall

travelling markets, One Tambon One Project (OTOP) districts, and stationary traditional

Thai-style markets must decide what they are willing to do to proceed with their businesses in

the new competitive markets. Individual opinions vary to some extent related to numerous

aspects of organizational change. Thus, some data collection in and among the many

integrated individual booths, stalls, sellers, retailers, cooks, farmers and shop owners is

necessary to qualify and quantify presence of different outlooks and insights regarding the

markets present and future operations. Due to macro-environmental forces in economics

and technology having changed along with micro-environmental forces related to marketing

channel coordination, communication and operations among suppliers, distributers and

intermediaries, as well as transformations of different publics and customer markets (Kotler

and Armstrong 2008), a modern professional analysis of existing performance goals, factors

related to performances and desires of the vendors at the Thai-style markets is needed now as

opposed to the traditional model guide of outdated and less comprehensive methods which

rely primarily on speech communication and semi-religious structure of development,

management and organizational leadership.

Through collection of opinion data from shop owners and workers in the open air andOTOP markets in and near Chiang Mai, Thailand, the researcher can develop a good

understanding of how these workers feel their shops are performing, how they feel their

businesses have been influenced by foreign-origin corporations, and their desires to perform

better through some adaptations that the researcher can suggest by assessing data associated

with their opinions and attitudes related to variables upon which performances are dependent

in this highly competitive, globalized neo-market. Such a study of Thai-style markets has

both personal and professional potency in the academic and working communities in Chiang

Mai, Thailand. The researcher can provide assistance to lower class agricultural workers in

Chiang Mai through the study while not upsetting the corporate status quo in the region.

The researcher found insufficient reports of similar studies available on Infotrac-College

databases, through the university library, Google searches, Thai government websites,

relevant trade publications and reviewed journals to make conclusions regarding the present-

day status of open-air markets in Chiang Mai in the midst of corporate expansion. Very few

English language studies regarding Thailands agricultural sector were available to view, and

none were pertaining to integrated domestic Thai supply-chain logistics or retail foods. Due

to lack of relevant theories, reports, data, and studies available on the subject, the researcher

conducts original descriptive research in Chiang Mai, Thailand with the aid of a Thai

language native speaker.


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Researcher Objectives and Questions:

Objective 1: Collect opinion data directly from market workers by survey and speech

communication interaction.

Objective 2: Assess working conditions, general market atmosphere and conditions.

Objective 3: Use SPSS to analyze data and make suggestions designed to benefit the

Thai style poorer markets.

Question 1: Do local market workers want to have better business performances?

Question 2: Do local market workers believe their sales are negatively affected by the

expansion of hypermarkets in Thailand (i.e. Tesco-Lotus, Carrefour, Big C, Makro) and the

corporations smaller-sized neighborhood marts?

Question 3: Are local market workers willing to adapt to changing businessenvironments by adopting several marketing, sales, organizational and supply line models

and strategies which can help influence performances within their markets to improve by

better competing with the larger corporations? In other words, are the fresh market workers

willing to change with the times?

II. Literature Review

Farming isnt a business but a livelihood, enough to put food on the table, put the

children through school and pay for basic utilities, a Bangkok Post article from 2001 stated

about a Saraburi corn farmer named Mr. Lek, who earned then on his 28-rai farm roughly$2,000 per year, which is a fairly high income for many of the 1.5 million Thai farmers who

had to join a program which suspended debts for three years of up to ~$2,500 owed to the

state-owned Bank for Agriculture and Agricultural Co-operatives.

People dont need money any more than they need information or technology, said

Newin Chidchob, former deputy agriculture minister of Thailand. If you are going to reform

agriculture, you need to look at new models, he continued in the 2001 Bangkok Post article.

Mr. Chidchob clearly alludes to the real value of money being information or technology, or

some other good or service, which the money serves as a medium of exchange to purchase,

but people certainly do need money as Mr. Chidchob probably knows well.

New business models were thought to be beneficial to small and medium sized

enterprises in Thailand in 2002. The Allied Retail Trade Co., a state-sponsored firm designed

to help Thai small businesses compete against large foreign-owned competitors, expected

10,000 members in its first year, 100,000 within the first five years (Bangkok Post 2002).

The organization, partnered with the Office of SMEs Promotion and Small Industry Finance

Corporation (SIFC) joined small merchants together to make larger bulk purchases, which

helped them push for the same deals as larger businesses. Then-permanent secretary for

Industry, Manu Leophairote, stated that Allied Retail was intended to aid in recovery for local

businesses. ART released a statement in early 2003 informing the public that the company


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was making an agriculture addition designed to sell quality essentials to farmers such as

fertilizers, seeds, insecticides and pesticides, bypassing middlemen and brokers to create up

to 20% discounts (BNET, Knight Ridder/Tribune Business News 2003). The 2006 military

coup and 2008 government changes may have affected the operations of ART; no

information related to ART after 2006 was found using Google and Infotrac-College internetsearch functions.

Thai opposition to globalization has been similar to that in many other developing and

poorer countries for years (New York Times 2000). Roughly 1,000 protesters marched in

Bangkok during a UN/WTO conference in 2000, demanding immediate action to share the

spoils of globalization more fairly, according to the NY Times. Malay PM Mahathir

Mohamad criticized Western-style globalization at the 2000 conference, where Kofi Annan

called for a Global New Deal, to spread the advantages of liberalized flows of capital,

goods and people to all countries that were open to investment.

The World Health Organization (2001) reported that globalization has made both

positive and negative impacts on Thai health. While imported technology, information,

knowledge and procedures were reported to benefit Thai health ratings, air pollution in big

cities, environmental degradation and disruption [which] led to frequent floods [also led to]

changes in disease vector behavior. WHO also reported that globalization has brought with

it unhealthy lifestyles...health has been damaged by the promotion of fashionable drugs,

foods and other consumer products such as tobacco, alcohol, melatonin and Viagra[along

with] many concerns about health ethics. WHO (2001) recommended active response to

globalization rather than mere observation and speculation, and stated that the world needs

a clearly recognized moral authority to uphold the principle of equity in health and socialjustice[there is a need for new] norms and standards, accountability, measures for resolving

conflicts and responding to emergencies, and a mandate to implement themthe existing

international institutions have to be reoriented. This WHO report strongly suggested that

globalizations effects are not limited to those related to income and wealth distribution.

Money politics, stated Pathmanand (2001), the merging of profit-seeking and power-

seeking, has become stronger [through] more sophisticated conjunction between the private

sector and politics initiated by the Thai Rak Thai party after its victory in January 2001.

Pathmanand, continued in the Institute of Southeast Asian Studies journal (2001), during the

decade of the 1990s, Thailand became more exposed to global forces. Military issues

related to the US withdraw of troops in 1976 and the end of the Communist Party of Thailand

insurrection in the late 1980s, the end of the Cold-War era, coups and other distinctly Thai

political actions aided democratization of the nation, reform, and a transition toward a society

and government which represent the ideas of citizens mindful of rights of individuals

(Pathmanand 2001), which the developing economy is still undergoing. As a nation which

has faced several unorthodox changes at the national and provincial levels in government, the

benefits of standardization of service, method, model and standards associated with corporate

expansion and globalization are appealing, which FDI and regulatory pragmatism suggest

despite the harshest of protectionist critics among the many interest groups in the Thaipopulation.


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Friedrichs and Friedrichs (2002) cited numerous authors who claimed that globalization

in general, along with practices of the World Bank are criminal enterprises wherein ordinary

people lose control over their economic destiny. Friedrichs and Freidrichs cited several

sources which supported conclusions that that the World Bank and IMF have ignored local

interests by dealing mainly with economic elite classes; that the organizations have lentmoney to ruthless military dictatorships and that the organizations favors strong

dictatorships over struggling democracies...[and] the privileged benefit disproportionately

from dealings with the World Bank relative to the poor. Friedrichs and Friedrichs (2002)

focused on the Pak Mun dam loan from the World Bank to Thailand, in which it stated that

the World Bank supported rights abuses and refusal to handle grievances related to

involuntary resettlement of villages displaced by the dam. The same authors stated that the

World Banks own experts concede that millions of people have been displaced because of

these [dam] projects.

Siwaraksa (2002) made note of villagers rights and growing public interest in poverty-related political groups in the Social Policyjournal. The Assemble of the Poor has a history

of protests against injustices resulting from the governments development policy and

economic globalization; for example, forced relocation without adequate compensation due

to the construction of dams, industrial pollution, and increased indebtedness of small farmers

who are being uprooted by giant agribusiness, Social Policy printed (2002). The Assembly

[of the Poor group] is an amalgamation of seven distinct networks, representing almost every

region in Siam and comprising more than half a million members. At the heart of the

Assembly are urban and rural small-scale agriculturalists and manual laborers, whose

interests are served through political and social action designed to give credibility to the

monarchy-approved practices of self-reliance and self-sufficiency in Thailand, while still

joining the modern systems globalization has brought to the region, like establishing credit

unions, cooperative shops and better-functioning local economies.

Thailand hosted the Leadership Forum 2002 (Xinhua), where top businesspeople,

politicians and academic experts discussed the impacts of globalization. Then-deputy leader

of the then-largest opposition party in Thailand, the Democrat Party, 2009 PM Abhisit

Vejjajiva, delivered a speech along with WTO, Washington University, and Hong Kong

leaders. Shortly following the Foundation of International Human Resource Development

Leadership Forum in 2002, more than 100 Thai government officials and environmentalactivists planned to attend the World Summit for Sustainable Development in South Africa

(Xinhua 2002). Agenda 21, Thailands sustainable development plan, was on the speech

agenda of then-government officials and Princess Chulabhorn. Two years later, leaders from

then-Finance Ministry, Bank of Thailand, National Economic and Social Development

Board, and Budget Bureau planned to develop an economic sustainability plan for

government and private activities in efforts to avoid a repeat of the overinvestment boom

and subsequent crisis of the 1990s (Bangkok Post 2004).

Practical solutions are obviously necessary along with adequate theoretical guidelines if

blueprints for any structured sustainable development are expected to be implemented pastthe planning, verbal and written communication stage. Multinational corporations succeed in


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large part because of their research and innovation in transportation, logistics, IT and

company infrastructures which are implemented in accordance to theoretical guidelines. The

Bangkok Post (2004) printed that improvements in infrastructure, hardware and software

[are necessary] to enable Thailand to compete in the global arena, according to a study by the

Japan External Trade Organization. According to the BP (2004) article, Jetro BangkokPresident Atsuo Kuroda, said Thailand had a strong potential to be a logistics hub for

Indochinabut achieving this potential would require improvements in hard infrastructure

such as roads, airports, [railroads], and deep-sea ports, as well as improvements on the

software side, such as customs procedures and traffic regulations. Before Thai business

leaders can conquer the external competition, they must first win over the citizens of

Thailand and make a majority-led cause of action to upgrade internal protocols, standards and

strategies.

Thailand must improve technology to meet rising demand for food in the future,

printed Xinhua (2009) from the InnovAsia conference hosted by the Science and TechnologyMinistrys National Innovation Agency. Darunee Edwards, President of the Food Science

and Technology Association of Thailand said Thai food manufacturers must develop

themselves to meet non-tariff barriers imposed by importing countries based on food-safety

or face export difficulties.

Farming contributes to 14% of the global GHG emissions according to experts at the

Copenhagen environmental conference (Bangkok Post 2009). Solutions for GHG reductions

in farming are proving elusive as well. Many Asian countries want advanced food and agro

technologies and know-how from Japan, which has a comparative and competitive advantage

in production of such technologies and know-how in East Asia (Xinhua 2009). Due to poorChinese safety standards in food production, some Japanese investors are expected to move

their production facilities to Thailand (Bangkok Post 2008) to supply Japanese demand for

imported foods, which make up 60% of consumption in Japan. The JTEPA free trade pact

with Japan should prove useful for Thai farmers who benefit from the Chamber of

Commerces master plan to improve competitiveness in agriculture and food production (The

Nation 2009) hopefully through upgrading technologies on the farms. The focuses of the

TCC macro-action plan are improving environmental and food safety standards, which will

increase the number of export-quality foods.

China recently set up a $1 billion fund for the Thai agricultural processing industry (Bangkok

Post 2009). Thailand is seen as a strategic location in terms of trade and logistics in the

ASEAN partnership with China. With general improvements in quality and organization, all

sellers of Thai produce can benefit from private and public programs which target agriculture

and food.

Warr (2004) studied the relation between economic growth and poverty reduction,

concluding that the two are positively correlated (Table 1). It is obvious that over the long

term, sustained economic growth is a necessary condition for large-scale poverty alleviation

(Warr 2004). Macroeconomic programs, education and health care helped the poor overcomesocial exclusion, raise agricultural productivity, enhance diversification, sustain consumption,


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and improve risk

management.

Thailands

Decentralization Act

under the 1997Constitution gave more

control over local

revenue appropriations

and increased local

accountability for public

expenditures. In regions

like northeastern Isan

(EE-sahn), which

accounted for 61% of

Thailands poor people

in 2000 with only 34%

of the national

population, where an

earlier Green Isan

program outlined local

interests which clearly

did not appeal to the

smoggier Bangkok

urban dwellers, greater control of public funds at the provincial levels can be a strong point indeveloping the opportunity, security and community the government decided were

dimensions of poverty reduction (Warr 2004). Yet even under decentralization, politicians

strapped for swift and long-term solutions within the very limited timeframes of public office

terms might be swayed to accept the benefits of foreign direct investment and multinational

corporate expansion under the assumption that locals both benefit with jobs and some

organizational influence, while many or most of the locals may actually think quite

differently about the impact of multinational corporations.

2006 protests made by independent shopkeepers against global hypermarkets prompted

Thai government officials to halt expansion of 15 large retailers within the nation (IIED,Planet Retail 2006). Later that month, Tesco was involved in talks with government

authorities regarding a draft law to regulate retail sectors. Seven other multinational retailers,

including Boots and Makro, agreed to suspend expansion for 30 days (Grocer 2006). By mid

2007, a new central government office the Retail and Wholesale Committee, chaired by the

commerce minister was set up to assess and approve proposed supermarket and

hypermarket outlets within any Thai province. As part of the decentralization initiative

undertaken by the Thai government, this office was designed to allow greater hearing of

public opinion and give greater power to provincial governments, said deputy commerce

minister Oranuj Osathananda (Retail Planet 2007). Retail Planet commented that it seemslikely that the draft regulations will not deter the foreign grocers from their expansion plans.


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Thai hypermarket shoppers appear driven more by conveniencebecause they tend to

shop in groups and enjoy this experience, retailers may want to consider more of the

experiential or social aspects involved in shopping, rather than purely functional offering,

stated a study in the Journal of Product and Brand Management (Shannon and Mandhachitara

2008).

The Journal of Retailing (Leszczyc et al 2004) printed a study which stated that during

the last few decades there has been a significant increase in one-stop shopping centers like

the supercenters and hypermarkets in Thailand, which feature retailers [who] have

responded to this need for shoppers to economize on the time spent shopping by providing a

wide assortment of products allowing consumers to combine purchases in multiple

categories. According to Leszczyc et al (2004), price is a motivating factor in consumer

behavior too. Classic location theory is developed on the premise that shoppers visit the

closest store or the store where costs are minimized, the Journal of Retailing published.

Price seekers in this study were willing to travel farther to go to larger stores with lowerprices, more likely to shop at every-day-low-price (EDLP) stores as single-purpose shoppers,

and as multi-purpose shoppers were willing to travel farther to go to combination stores,

malls, or supercenters, to shop at EDLP and Hi-Lo stores.

The Thai government restricts foreign business expansion under the Foreign Business

Act B.E. 2542 and previously under the Alien Business Law B.E. 2515, both of which are

more restrictive than American and UK foreign business laws. Thus, there must be

compelling interest in favor of the Thai consumer preferences and MNC retailers to continue

allowing expansion rather than pure conspiracies or gross injustices alluded to by protestors

and MNC opposition parties.

Harris and Goode (Journal of Retailing 2004) cited a Gundlach and Murphy (1993) study

which found that the variable most universally accepted as a basis of any human interaction

or exchange is trust. EDLP superstores like Tesco-Lotus, Carrefour, Big C and Makro

develop trust through standardized operations, commitments to low prices, clean and friendly

atmospheres, helpful staff, regular hours, reliable open/close times and consistently stocked

shelves. Harris and Goode (2004) found that consumer trust was highly correlated -

statistically significant at the 1% level in a two-tailed test to service quality, perceived

value, satisfaction and loyalty. Shoppers at the supercenters and hypermarkets no doubt

derive a sense of value and satisfaction from the modern structures, the social atmospheres,

everyday low prices, service quality and therefore develop a sense of trust for the retailers

through repeated loyal visits to the businesses.

EDLP leaders like Tesco and Carrefour often offer price matching guarantees, which

Srivastava and Lurie (2004) found to be a determinant in consumer behavior. Local fresh

markets are known to be price laggards in several categories of packaged goods due to

inability to make bulk purchases and receive discounts, which makes price-matching nearly

impossible for independent sellers when compared to MNC chain retailers. Available

literature on the subject of price suggests the obvious truth about buyer behavior: people aremore likely to shop at stores which offer lower prices. If Thai nationals want to truly


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compete in this new age of business modeling, service structure and organization, they will

need to first look at what is very popular in Thailand which foreign companies offer.

Like Thailands unskilled labor force, which is composed of 2 million or more migrant

workers primarily from Myanmar (5%+ of the total labor force), representing at least 1.25%

of the Thai GDP (UN 2009), consumer goods in Thailand are quite often from foreign

companies. While the Kings self-sufficiency programme is undergoing a 20 billion Baht

transition designed to free [farmers] from debt slavery by corrupt corporations and banks,

under the supervision of the Sufficiency Economy Office, which advocates the same ideology

that many respected scientists around the world believe in - be wary of corporations and

their promises of quick profits (The Nation 2009) and that Westernized farming practices

are not always the best idea for Thai farmers another market segment does show preference

for westernized products, services and corporations in their buyer behavior. For a large

number of urban Thais, imported products, services and retailers are not just a luxury, but

essential for survival.

The figure below helps to make clear the nature of Thailands partial dependence on

imports, FDI and foreign-origin MNCs like Tesco, Carrefour, Big C and other superstores

which sell the products in the figures. Latitudes and longitudes of MNC origins for the

majority of consumer goods at the superstores, written below the logo or photo, suggest that

Thai consumers enjoy the benefits of globalization very much. These products originate from

much farther territory than Myanmar and represent much more than 5% of the consumer

goods available on shelves at the superstores, supermarkets and some local shops.


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Taking a hard line against largely foreign-owned retailers is unwise as countries in

which the firms are headquartered can respond in a similar manner against Thai interests,

said deputy commerce minister Wattana Muangsuk (Bangkok Post 2002).

Sufficient news articles, revenue reports, present and planned operations activities

regarding hypermarkets have been available to review via Google and Infotrac-College

searches to conclude that Thais like shopping at the international corporate retail shops

regardless of the negative effects on the smaller locally owned shops. 2002 Deputy

Commerce Minister Wattana Muangsuk had a good point about the strategic games

international businesspeople play, be they of John Nashs theories or some alternative style,

and it is unwise for Thai people to resist much considering their status as a developing nation

of consumers which import many goods, purchase a large percentage of daily-use products

from foreign-headquartered MNCs, and lack sufficient domestic corporate retailers which

could replace the Tesco, Carrefour, Big C and others if a major resistance effort were made.

However, it is important that the international corporations do not get an unrealistic sense ofpower among them, as it appears Tesco may have in a 16.4M libel damage claim against a

former Thai MP, Jit Siratranont, who faced up to two years imprisonment for the charge in

connection with a business newspaper columnist, Kamol Kamoltrakul, against whom Tesco

claimed damages of 1.6M. A single speech at Bangkoks Kasetsart University, in which Jit

said Tesco Lotuss expansion was aggressive and a single BangkokBizNews article from

2007, both featuring a statistical error which the two defendants retracted and admitted was a

mistake, UKs Guardian (2008) printed, signaled potential for hundreds of millions of Baht in

damages to an unreasonable Tesco-Lotus Thai general counsel.

Defamation suits of this nature and of such absurd proportions are clearly meant toharass legitimate criticism, intimidate independent media, and stifle discussions and debate

over legitimate public concerns, said Roby Alampay of the South East Asian Press Alliance

(Seapa). Seapa sees the Tesco Lotus suits as harassment, pure and simple (Guardian News

& Media 2008).

Tesco also pursued libel proceedings in the UK against the Guardian publication

regarding criticisms of the companys offshore tax structures. Tesco-Lotus in California,

USA, operating under the name Fresh and Easy, had also run into trouble with activists and

critics, but the retailer dared not pursue libel claims there, clearly alerting the international

news media that the large British corporation was indeed trying to harass and intimidate the

developing world activists and media in Thailand. Sinfah Punsarawuth, a lawyer familiar

with Thai libel cases, said companies invariably file hugely inflated damages claims thus

again evidencing the unrealistic and lucid, on-the-fringe-of-insanity style of governance

among the corporate attorneys involved in such cases as these.

Competitors beware! The barristers show no fear of exhibiting delusional thinking at

their places of business, and they offer only bankruptcy and imprisonment to critics who utter

even a mistaken slip of the tongue under at-best loose and subjective defamation definitions.

Henceforth, the cause of protectionism takes a backseat to personal safety in the presence ofruthless corporate counsels, and the independent Thai businesspeople are better advised to


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leave the giants asleep as they may be, and to pursue more coordinated efforts directed at

their own target market segments and in their local niches; focus on self improvement rather

than on the wrongdoings of others. For fresh produce sellers at the Bang Kapi, East Bangkok

local open-air market, located roughly 100 meters from the largest hypermarket ever built in

Thailand which features a Tesco Lotus (Bangkok Post 2002), across from The Mall and downthe street from the Makro, criticisms, anger and spite are natural reactions still.

Tesco Lotus CEO, Michael Raycraft, addressed this part of their business expansion by

saying Whatever the retail law looks like, Tesco Lotus will comply with it. However,

consumers should have a chance to say what they want (Bangkok Post 2002). One cannot

help but wonder where this magnanimous attitude was at the time of the Siratranont and

Kamoltrakul lawsuits, and this suggests that a swift organizational effort among provincial

government leaders, academics, small grocers, farmers and independent retailers by way of

exploiting the political and legal confusion in this expansionary period can help concerned

citizens and consumers protect their own neighborhood market interests and their moneyfrom leaving the country.

MMR (2002) reported that several large store operators in Thailand face[d] fines and

possible jail terms for executives after being accused by the Thai government of forcing

wholesalers to cut prices in return for placement on their shelvescompanies named

include[d] U.K.s Tesco PLCFrances Carrefour SABig C Supercenter Pci of France

and Siam Makro Pci which is 40% owned by SHV Holdings NV of the Netherlands.

However, while criminal and higher-level legal sanctions are not out of the question and have

been prepared by former governments in the past 10 years, for the average worker,time and financial constraints limit that possible means of procuring income stability to moreof a theoretical rather than pragmatic one.

Most of the 24 Tesco superstores in Thailand in 2008 were located in Bangkok, and the

smaller scale convenience stores are dotted all over Thailands urban and suburban tourist

and commercial zones (James 2008). In 2002, a joint venture between Tesco Lotus and the

CP Group employed 14,000 Thai people, and the lions share of the 607M worth of food

and non-food purchases by the chain were supplied through Thai vendors in 2001. Thai

Tesco Lotus stores are supplied through a distribution center in Wang Noi which uses a

1.3B information technology system which can handle 500,000 cases per day. Food courtsat the Tesco hypermarkets like those in Bangkok serve an average of 7,000 hot meals per day

(Quick Frozen Foods International 2002). People from all over the world enjoy the

cleanliness, environmental and product safety, commercial atmosphere and prices at the

stores. Between 1998 and 2002, the CP-Tesco Lotus partnership accounted for 5.4% of all

foreign direct investing in Thailand, so there is compelling interest for most parties to accept

the supercenters as a permanent part of the Thai domestic economy.

On the other hand, given that Thai hypermarket sales are forecasted to increase 47% by

2012 (M2 Presswire 2008), the locals should look toward better competition with

corporations as a primary opportunity. CP-All, which is a Thai company, has severalpartnerships with international suppliers and franchises like the 300 7-Eleven shops it opened


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in 2008-09, the Tesco Lotus partnership and CP-Meiji, which competes with the Thai-Danish

Milk Co. that HM the King Bhumibol Adulyadej inaugurated on January 16, 1962 with King

Frederik IX of Denmark (Ministry of Foreign Affairs Denmark 2009). In fact, the all of the

7-Eleven shops in Thailand this researcher observed did not stock a full line of the cheaper

830mL bottles of Thai-Danish milk, selling only the more expensive Meiji and Foremostbrands of low-fat and skim above the 450mL bottle size, though some Tesco Lotus minimarts

the researcher checked did stock the full line of cheaper (29 for 830mL) bottles of Thai-Danish alongside the more expensive (39+ for 830mL) bottles of CP-Meiji milk.

Though many Thai people do not know of CPs partnerships with the foreign

manufacturers and chain super/convenience stores, common business sense tells them that 7-

Eleven and Tesco Lotus minimarts and superstores bearing names in Roman letters are a

threat to local interests in business. Despite the subtle conflicts in interest between CP and

small business owners, executive VP of CPGs Chia Tai Co., Manas Chiaravanond said, If

there was no CP, there would not be low-priced poultry nowadays. [CP] want[s] to create asupply of cheap vegetables in the market like [CP has] done with chicken (Bangkok Post

2001). Astute academic observers should note that there is an element of logical fallacy in

Manas statement since nobody knows what the actual price of chicken would be without CP,

and also note that many rural, suburban and urban poor people think the price of poultry

today, even CP brand, is still quite expensive by Thai standards. The threat companies like

CP have posed is one especially related to pricing in the developing economy, and

extraordinarily large growth of the partnerships with the UK, Japanese, American and other

First-World nations endanger the exclusively Thai pricing structure. The exclusively Thai

pricing structure of street-side prepared and packaged foods is often quite a lot lower than the

prices at multinational corporate expansion locations, which do at times severely negatively

affect purchasing power parity in the developing world.

The Charoen Pokphand (CP) Groups newer vegetable project, Fresh Giant brand, was

aimed at giving the company new profits and a new image. CP initially wanted to sign

contracts with 2,000 Thai growers who would receive guaranteed prices, targeting for high-

quality vegetables rather than the mass market and aimed to replace imported broccoli and

sweet peppers (Bangkok Post 2001). Using this First-World business and food production

model, selling only high quality produce within certain standards can help growers,

wholesalers and market workers export as part of their business strategy too. In part, CPoffers a good model for Thais to use as a frame of reference in starting larger-scale or more

modern production.

In 2007, German Technical Co-operation invested in the Thai fruit industry, desiring to

eventually train 600,000 Thai growers in EuroGAP accredited produce exporting. According

to Grocer(2007), less than 1% of the 230M EU produce market is made of Thai products,

though GTC officials stated that Thai fruit had great potential in Europe if it meets quality

requirements. Unfortunately for Thai growers prospects in the EU still, tropical African

nations can grow and sell the same species of produce at a closer proximity to Europe, but

improving standards and accepting newer government demands is the right thing to do forThais.


14/34

Export-quality produce is part of the mission of the Marketing Organization for Farmers

Market, which operates a showcase of seasonal fruits and curries from 600 approved vendors

near Chatuchak in Bangkok (Time International 2007). Through greater dissemination of

production, handling, fertilizing, seeding and insecticide application literature from the MOF,

more training events hosted by provincial authorities and more agricultural fairs in ruralfarming districts close to the homes of poorer farmers, along with visits to small villages

throughout the country by MOF and provincial agriculture experts, the Thai produce

standards could improve to a level similar to Australia, the US, Canada, Europe, Japan or

anywhere the farmers and associated workers wish to export to for higher profits, especially

with CAFTA.

The initial phases of development to a First-World standard in Thailand - training,

funding, education and operations changes - are likely to be a difficult set of changes for

poorer farmers, their partners and distributers in shops nationwide in Thailand. With low

budgets, low incomes, relatively poor images among district and provincial authorities,without secondary educations and therefore minimal linguistic ability, lower levels of

literacy, and virtually no hard scientific, mathematical or financial knowledge, the challenge

is quite a big one for the common people to rise in class in this modern age.

While the Thai GDP grew at rates between 7-9% annually through the 1980s and until

the economic crisis of 1997, the agricultural sector did not experience such growth

(SOJOURN 2004). Though some farmers still practice communal farming or joint farming

in which they operate on land the farmers do not own for low or no rent, or whether farmers

still live on or work on near-to-home lands without deeds, which were issued to some rai in

the 1970s, the earlier 20th century A.D. style of the Thai farming occupation is provingunsuccessful and far less a sustainable way of life as economic growth pushes up the price of

land, equipment, and living.

VanWey (2005) stated in a Center for Migration Studies report that Thailand is [at] the

beginning of the transition from an agricultural to nonagricultural country[while]

agricultural products have accounted for slightly over 10% of the GDP in recent years (World

Bank 2001)55% of Thailands labor force was in agriculture (Asian Development Bank

2000). In the Thai northeastern region especially, poverty and issues related to land

ownership cause migration out of Isan, like other rural areas, and into cities (VanWey 2005).

Many families of farmers split apart rather than stay together for life in one small territory

like they did through the earlier parts of the 20th century A.D., and the demands of the

modern world education, technology, social image make the historical models in

agriculture inadequate for large numbers of people.

Although joint and communal farming are still possibilities in many of the rural locales

in Thailand, this style is mainly for basic needs related self-sufficiency endeavors. Larger

families will likely have one or more members who leave home to pursue a city or modern

lifestyle. Under the traditional system, families are not likely to ever have enough money

saved to provide for family members who leave their district of origin to work or for higher


15/34

education such that the family member is protected from harsh and uninviting socio-

economic conditions away from home during a job-seeking period at least.

Disorganized farming communes cannot offer chain-grocer quality produce and are

subject to the whims of local markets if they do not wish to or cannot retail their own

products. Thai native speakers and English-speaking professionals in Thailand (2005) have

explained to the researcher that the gossip-friendly, more-social-and-less-occupational

structure of the in Isan can make farmers incomes unstable due to personaldifferences with purchasers, and for people who might only have a few spare Baht on any

given day, a loss of one days sales due to social stereotyping, cliques, or gossip can be a very

big problem. Due to variable and low quality levels of fresh produce, which could be

avoided by using modern farming methods recommended by government and private experts,

local farmers markets lose sales to the foreign and domestic big business competitors, and

suffer bad reputations among the middle and higher classes of consumers. A group effort to

evolve the Thai style would serve everybodys interests in that it would harm no party whilebenefitting the lower classes and thus increasing overall economic performance.

III. Empirical Study

A scientific study designed to qualify presence of certain opinions among the and OTOP workers and quantify the prevalence of varying opinions was conducted. 244

women and 108 men were surveyed in 12 markets in and near Chiang Mai, Thailand in

December 2009. Respondents were approached directly in person by the researcher and

native Thai speaking assistant.

A cluster area probability sample (Kotler and Armstrong 2008 p141) was taken at the

Donprayom, Sarapi, Meihia, Nong Hoy, Doi Sutep, Dong Gai, Pratu Chiang Mai, Hong

Dong, OTOP Tanin, OTOP Ban Tawai, Lakeland, and Muang Mai markets. Respondents

were segmented by age, sex, position at the business, place of business, type of market, and

what they sell.

The literature reviewed suggests there is a need for development in traditional Thai

markets, yet also lack of elaborate information collected directly from these markets

regarding the individual workers wills to evolve their market model and management style.

Relevant literature supports that supply chain changes, cleanliness, safety, organizational

cooperation and other westernized business model components should be assessed for

implementation into the traditional Thai style market. The researcher designed survey items

to first discover if the Thai market workers desired to improve their business performances,

and then to assess their will to make changes that would likely improve their performances,

increase incomes and further development.

Sample Survey:


16/34

/ 18-35 36-5556+ //

: ____________________________________________________Sex: M/F Age: 18-35 36-55 56+ Owner/Family/Hourly1=Strongly Disagree 2=Disagree 3=Neutral 4=Agree 5=Strongly Agree

I want my market to perform better. 1 2 3 4 5

I believe foreign competitors like Tesco, Carrefour and 7-Eleven are a threat to my business performances. 1 2 3 4 5

I think the market atmosphere, cleanliness and work environment here should be improved. 1 2 3 4 5

I think the sellers, suppliers and farmers at this market should work together more to make a better organization. 1 2 3 4 5

I am willing to work together with other sellers more if I can make more profits. 1 2 3 4 5

I think thieves are a problem at this market. 1 2 3 4 5

1 = 2 = 3 = 4 = 5 = 1 2 3 4 5 7-11

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

KFC, 1 2 3 4 5

1 2 3 4 5


17/34

I want more customers at this market. 1 2 3 4 5

I want higher income for workers at this market. 1 2 3 4 5

I think this market should offer delivery for a small fee. 1 2 3 4 5

I think this market should change a little to be a great modern business. 1 2 3 4 5

Additional suggestions: ____________________________________________________

Method of Analysis

Lickert scale survey numbers and demographic data were entered into SPSS 12.0.

Using crosstabs, means, correlations, bar graphs and ANOVA functions on SPSS 12.0,

data was analyzed.

Results

All respondents were 18 years or older. The mean age of respondents at all markets was

the middle age group. Of the 244 total females surveyed, 91 were 18-35 years of age, 134

were 36-55 years old, and 19 were 56 years of age or older. 45 of the 108 men were 18-35

years old, 47 men were 36-55 years old, and 16 men were 56 years of age or older. Of the

264 business owners surveyed, 185 were women and 79 were men. 37 of the 53 family

member workers were women while 16 of the family workers were men.

12.5% of data was collected at Don Prayom market, where 8 respondents sold fresh

produce, 8 sold a combination of foods, 1 sold foods & household goods, 1 sold apparel, 2sold household goods only, 9 sold meats, 2 sold flowers, 1 sold religious goods, 2 sold

electronics and gadgets, 2 sold a combination of others goods, and 8 sold restaurant prepared

food. 15 men and 29 women were surveyed at Don Prayom market where 23 respondents

were 36-55, 18 respondents 18-35, and 3 respondents 56+ years old.

7.1% of data was collected at Nong Hoy market, where 5 respondents sold fresh produce,

6 sold a combination of foods, 2 sold foods & household goods, 1 sold apparel, 1 sold

religious goods and 10 sold restaurant prepared foods. 7 men and 18 women were surveyed

at Hong Hoy market where 11 respondents were 36-55 years old, 8 respondents 18-35, and 6

respondents 56+ years old.

6.8% of data was collected at the Doi Sutep traveling market, where 5 respondents sold

fresh produce, 2 sold a combination of foods, 7 sold apparel, 3 sold household goods, 2 sold

meats, 1 sold a combination of other goods, and 4 sold restaurant prepared foods. 9 men and

15 women were surveyed at the Doi Sutep traveling market where 15 respondents were 36-55

years old, 6 respondents were 18-35, and 3 respondents were 56+ years old.

9.1% of the data was collected at the Meihia market, where 8 respondents sold fresh

produce, 3 sold a combination of other foods, 3 sold foods & household goods, 2 sold

apparel, 2 sold household goods, 5 sold meats, 1 sold flowers, and 8 sold restaurant prepared


18/34

foods. 11 men and 21 women were surveyed at the Meihia market where 18 respondents

were 36-55 years old, 13 respondents were 18-35 and 1 respondent was 56+ years old.

6.0% of the data was collected at the Dong Gai traveling market, where 3 respondents

sold fresh produce, 3 sold a combination of foods, 1 sold foods & household goods, 5 sold

apparel, 2 sold household goods only, 1 sold meats, 1 sold religious goods, and 5 sold

restaurant prepared foods. 6 men and 15 women were surveyed at the Dong Gai traveling

market where 10 respondents were 18-35 years old, 10 respondents were 36-55, and 1

respondent was 56+.

15.3% of the data was collected at the Muang Mai market, where 37 respondents sold

fresh produce, 2 sold a combination of foods, 1 sold household goods, 11 sold meats, and 3

sold restaurant prepared foods. 20 men and 34 women were surveyed at the Muang Mai

market where 26 respondents were 18-35 years old, 26 respondents were 36-55 years old, and

2 respondents were 56 years old or more.

4.5% of data was collected at the OTOP Ban Tawai market, where 2 respondents sold

arts & crafts, and 14 sold furniture. 3 men and 13 women were surveyed at the OTOP Ban

Tawai market where 10 respondents were 36-55 years old, 5 respondents were 18-35, and 1

respondent was 56+ years old.

15.6% of data was collected at the Hang Dong market, where 10 respondents sold fresh

produce, 8 sold a combination of foods, 8 sold foods & household goods, 6 sold apparel, 3

sold household goods, 9 sold meats, 1 sold flowers, 1 sold electronics & gadgets, 1 sold a

combination of other goods, and 8 sold restaurant prepared foods. 13 men and 42 women

were surveyed at the Hang Dong market where 27 respondents were 36-55 years old, 22

respondents were 18-35 years old, and 6 respondents were 56+ years old.

5.4% of the data was collected at the Sarapi market, where 6 respondents sold fresh

produce, 4 sold a combination of foods, 1 sold apparel, 7 sold meats, and 1 sold flowers. 6

men and 13 women were surveyed at the Sarapi market where 8 respondents were 36-55

years old, 7 respondents were 18-35 years old, and 4 respondents were 56+ years old.

2.0% of the data was collected at the Lakeland traveling market, where 2 respondents

sold fresh produce, 1 sold a combination of foods, 1 sold apparel, 2 sold household goods,

and 1 sold restaurant prepared foods. 5 men and 2 women were surveyed at the Lakeland

traveling market where 4 respondents were 36-55 years old, 2 respondents were 18-35, and 1

respondent was 56+ years of age.

6.5% of the data was collected at the Pratu Chiang Mai market, where 2 respondents sold

fresh produce, 6 sold a combination of foods, 4 sold apparel, 6 sold meats, 1 sold religious

items, and 4 sold restaurant prepared foods. 5 men and 18 women were surveyed at the Pratu

Chiang Mai market where 16 respondents were 36-55 years old, 5 respondents were 18-35

years old, and 2 respondents were 56+ years old.

9.1% of the data was collected at the OTOP Tanin market, where 1 respondent sold fresh

produce, 13 sold a combination of foods, 1 sold apparel, 3 sold meats, 1 sold a combination


19/34

FreshProduce

Foodcombo

Foods&HHG

Apparel

HouseholdG

oods

Meats

Flowers

Religious

Electronics,P

hones,Gadgets

Arts&

Crafts

Othercom

bo

RestaurantP

reparedFo

Furniture

4 .0 0

4 .1 0

4 .2 0

4 .3 0

4 .4 0

4 .5 0

4 .6 0

4 .7 0

4 .8 0

MeanofS1

FreshProduce

Foodcombo

Foods&HHG

Apparel

HouseholdG

oods

Meats

Flowers

Religious

Electronics,P

hones,Gadgets

Arts&

Crafts

Othercom

bo

RestaurantP

reparedFo

Furniture

3 . 0 0

3 . 2 0

3 . 4 0

3 . 6 0

3 . 8 0

4 .0 0

4 .2 0

4 .4 0

MeanofS2

of other goods, and 13 sold restaurant prepared foods. 8 men and 24 women were surveyed

at the OTOP Tanin market where 14 respondents were 18-35 years old, 13 respondents were

36-55 years old and 5 respondents were 56+ years of age.

Of the 352 total respondents, 87 (24.7% of total) sold fresh produce, 56 (15.9% of total)

sold a combination of foods, 16 (4.5% of total) sold foods & household goods, 28 (8.0% of

total) sold apparel, 15 (4.3% of total) sold household goods, 53 (15.1% of total) sold meats

including seafood, fish and chicken, 5 (1.4% of total) sold flowers, 4 (1.1% of total) sold

religious goods, 3 (.9% of total) sold electronics & gadgets, 2 (.6% of total) sold arts & crafts,

5 (1.4% of total) sold a combination of other goods, 64 (18.2% of total) sold restaurant

prepared foods, and 14 (4.0% of total) sold furniture.

Descriptive Statistics

Means of responses for all

survey points among theentire data set of 352respondents were greater than3, and therefore affirm allsurvey statements. Ingeneral, respondents favormaking changes to the marketstructure, management,supply chain and atmospherein efforts to attract morecustomers, generate more

income and develop thebusiness model to achievebetter performances at themarkets.

MeanStd.

Deviation N

Want market to dobetter

4.4886 .81292 352

Foreign competitors arethreats 3.7614 1.19586 352

Market should becleaner

4.1676 .89810 352

Supply chain shouldmake betterorganization

4.3153 .80948 352

Willing to work withother shops more forprofit

4.3466 .82985 352

Theives are a problemat the market 3.5369 1.26031 352

Want more customersat the market 4.7330 .59652 352

Want more income forthe market 4.5739 .70827 352

Market should have adelivery service 3.3722 1.10199 352

Market model shoulddevelop/improve intime

4.3636 .84303 352


20/34

Means across all seller product segments are 3.00 or greater with the exception of the

delivery item #9 in 3 product categories, showing at least neutrality regarding the majority of

changes necessary and possible to develop and improve standards at work in local markets

across seller varieties. A delivery service was desired by the majority, but not by all.


21/34


22/34

Means above 4.0 with standard deviations less than 1.0 on all points except for 2, 6 and 9

suggest that the average seller in all segments is willing to make changes in efforts to increase

individual and market-wide incomes, improve performance, develop market structure with

modern amenities, attract more customers, organize supply chains better to gain advantages

of bulk purchase discounts through cooperating with other sellers more to increase overallmarket worth, productivity and efficiency while increasing personal profits.


23/34

DonPrayom

NongHoy

DoiSutepNat

Meihia

DongGai

MuangM

ai

OTO

PBanTawai

HangD

ong

Sarapi

Lakeland

PratuChiangMai

OTOP

0 .0 0

1 . 0 0

2 . 0 0

3 .0 0

4 .0 0

5 .0 0

MeanMarketshouldbecleaner

DonP

rayom

NongHoy

DoiSutepNat

Meihia

DongGai

MuangM

ai

OTOPBanTawai

HangD

ong

Sarapi

Lakeland

Pratu

ChiangM

ai

OTOP

0 .0 0

1 . 0 0

2 .0 0

3 .0 0

4 .0 0

5 .0 0

MeanSupplychainshouldmakebetterorganization

DonPrayom

NongHoy

DoiSutepNat

Meihia

DongGai

MuangM

ai

OTO

PBanTawai

HangD

ong

Sarapi

Lakeland

PratuChiangMai

OTOP

0 .0 0

1 . 0 0

2 . 0 0

3 .0 0

4 .0 0

5 .0 0

MeanWillingtoworkwithothershopsmoreforprofitDonP

rayom

NongHoy

DoiSutepNat

Meihia

DongGai

MuangM

ai

OTOPBanTawai

HangD

ong

Sarapi

Lakeland

PratuChiangMai

OTO

P

0 .0 0

1 .0 0

2 .0 0

3 .0 0

4 .0 0

5 .0 0

MeanTheivesareaproblematthemarket

DonPrayom

NongHoy

DoiSutepNat

Meihia

DongGai

MuangM

ai

OTO

PBanTawai

HangD

ong

Sarapi

Lakeland

PratuChiangMai

OTOP

0 .0 0

1 . 0 0

2 . 0 0

3 .0 0

4 .0 0

5 .0 0

MeanWantmorecustomersatthemarket

DonP

rayom

NongHoy

DoiSutepNat

Meihia

DongGai

MuangM

ai

OTOPBanTawai

HangD

ong

Sarapi

Lakeland

PratuChiangMai

OTO

P

0 .0 0

1 .0 0

2 .0 0

3 .0 0

4 .0 0

5 .0 0

MeanWantmoreincomeforthemarket

DonPrayom

NongHoy

DoiSutepNat

Meih

ia

DongGai

Muan

gMai

OTO

PBanTawai

Han

gDong

Sara

pi

Lake

land

PratuChiangM

ai

OTOP

0 .0 0

1 .0 0

2 . 0 0

3 .0 0

4 .0 0

MeanMarketshouldhaveadeliveryservice

Don

Prayom

NongHoy

DoiSutepNat

Meihia

DongGai

Muan

gMai

OTOP

BanTawai

Han

gDong

Sara

pi

Lakeland

PratuChiangM

ai

OTO

P

0 .0 0

1 . 0 0

2 . 0 0

3 .0 0

4 .0 0

5 .0 0

MeanMarketmodelshoulddevelop/improveintime


24/34


25/34

56+ Mean 4.3714 3.9714 4.2857 4.2571 4.5143

N 35 35 35 35 35

Std.Deviation

.80753 1.24819 .89349 .88593 .74247

Total Mean 4.4886 3.7614 4.1676 4.3153 4.3466

N 352 352 352 352 352

Std.Deviation

.81292 1.19586 .89810 .80948 .82985

Mean responses for S6-S10 segmented by age group:

Age

Theives area problem

at themarket

Want morecustomers atthe market

Wantmore

income forthe

market

Marketshould havea delivery

service

Market modelshould

develop/improve in time

18-35 Mean 3.4926 4.7426 4.5735 3.4118 4.3015

N 136 136 136 136 136

Std.Deviation 1.28234 .66663 .75653 1.07821 .90529

36-55 Mean 3.5580 4.7238 4.5635 3.3370 4.3757

N 181 181 181 181 181

Std.Deviation

1.24865 .56856 .70127 1.13637 .81804

56+ Mean 3.6000 4.7429 4.6286 3.4000 4.5429

N 35 35 35 35 35

Std.Deviation

1.26491 .44344 .54695 1.03469 .70054

Total Mean 3.5369 4.7330 4.5739 3.3722 4.3636

N 352 352 352 352 352

Std.

Deviation 1.26031 .59652 .70827 1.10199 .84303

Very similar means and standard deviations were found between age groups.

Mean responses for S1-S5 segmented by company role:


26/34

Mean responses for S6-S10 segmented by company role:

Responses varied within one standard deviation among different respondent groups.

Owners responded with the highest marks on all numbers except 7, 8 and 10. Overall, allrespondents showed desire to improve the markets on all points, but the owners showed thehighest desire to improve on most points.

Using a 2-tailed method, survey item #1 was significantly correlated to the 1% level withitems 1, 2, 3, 4, 5, 7, 8, and 10. Survey item #1 was significantly correlated to the 5% levelusing a 2-tailed method with survey items 6 and 9. These high correlations between therespondents desires to have higher performances in markets and other survey items whichfeatured possible changes which could be considered to improve performances suggest thatrespondents were willing to take practical steps toward improving their markets.Respondents showed highly significant desires to take steps to develop their market model in

2-tailed results showing correlations at the 1% level between survey item #10 and 1, 3, 4, 5,7, 8, and 9; 5% significant correlations were found between survey item #10 and 2, and 9.

Owner, Family,Hourly

Want marketto do better

Foreigncompetitorsare threats

Marketshould becleaner

Supply chainshould make

betterorganization

Willing towork with

other shopsmore for

profit

Owner Mean 4.5038 3.8523 4.1856 4.3485 4.3902

N 264 264 264 264 264Std. Deviation .83187 1.16873 .91441 .77983 .80591

Family Mean 4.4340 3.6981 4.1321 4.1509 4.3019

N 53 53 53 53 53

Std. Deviation .79686 1.16989 .92065 .94861 .91115

Hourly Mean 4.4571 3.1714 4.0857 4.3143 4.0857

N 35 35 35 35 35

Std. Deviation .70054 1.29446 .74247 .79600 .85307

Total Mean 4.4886 3.7614 4.1676 4.3153 4.3466

N 352 352 352 352 352

Std. Deviation .81292 1.19586 .89810 .80948 .82985

Owner, Family,Hourly

Theives area problem

at themarket

Want morecustomers atthe market

Wantmore

income forthe

market

Marketshould havea delivery

service

Market modelshould

develop/improve in time

Owner Mean 3.5758 4.7311 4.5682 3.3902 4.3523

N 264 264 264 264 264

Std. Deviation 1.29122 .63457 .74193 1.12154 .85049

Family Mean 3.4528 4.8491 4.6792 3.3019 4.4717

N 53 53 53 53 53

Std. Deviation 1.20202 .36142 .54679 1.04853 .89020

Hourly Mean 3.3714 4.5714 4.4571 3.3429 4.2857

N 35 35 35 35 35

Std. Deviation 1.11370 .55761 .65722 1.05560 .71007

Total Mean 3.5369 4.7330 4.5739 3.3722 4.3636

N 352 352 352 352 352

Std. Deviation 1.26031 .59652 .70827 1.10199 .84303


27/34

Thus, respondents are very likely to have some understanding of the slower, morecomplicated process of changes their markets must undergo to satisfy desires for generalimproved performance, and respondents showed desire to make internal changesnecessary/possible to support their general higher performance goals

Data translated with SPSS using a one-way ANOVA function with the market namesegment as the factor showed responses for survey statements 1, 5, 6, 7, and 9 supported

the null hypothesis, while points 2, 3, 4, 8, and 10 showed varying means across groups.

ANOVA

IV. Discussion

Given the presence of statistically significant results, outlier sets in survey data collected

were not in sufficient amount to make a high impact on the entire study. Insignificant results

found in survey items 1, 5, 7, and 9 may have been affected by literacy problems among

some market workers. The native Thai speaking research assistant had to read several

surveys orally to respondents who could not read, and it is possible that some respondents

Sum ofSquares df

MeanSquare F Sig.

Want market to dobetter

Between Groups 11.172 11 1.016 1.564 .108

Within Groups 220.782 340 .649

Total 231.955 351

Foreign competitors

are threats

Between Groups 40.674 11 3.698 2.725 .002

Within Groups 461.280 340 1.357

Total 501.955 351

Market should becleaner

Between Groups 16.194 11 1.472 1.875 .042


Total 283.111 351

Supply chain shouldmake betterorganization

Between Groups 13.503 11 1.228 1.928 .035


Total 229.997 351

Willing to work withother shops morefor profit

Between Groups 9.852 11 .896 1.313 .215


Total 241.716 351

Theives are aproblem at themarket

Between Groups 29.364 11 2.669 1.718 .068

Within Groups 528.156 340 1.553

Total 557.520 351

Want morecustomers at themarket

Between Groups 4.111 11 .374 1.052 .400


Total 124.898 351

Want more incomefor the market

Between Groups 10.752 11 .977 2.010 .027


Total 176.080 351

Market should havea delivery service

Between Groups 19.449 11 1.768 1.478 .138

Within Groups 406.799 340 1.196

Total 426.247 351

Market modelshoulddevelop/improve intime

Between Groups 14.243 11 1.295 1.872 .042


Total 249.455 351


28/34


29/34

and around Chiang Mai are ready to plan, control, motivate and lead their markets in a

transition which corresponds to recent demands and expectations placed upon the lower

classes of agro-workers in Thailand by government experts and importing foreign countries.

Markets can elect management boards which can form new partnerships with suppliers

and create organizational commitments among the fresh markets in their district, city,

province, region or larger level. Through making more organized vendor management

system style market channels, multi channel distribution systems, or through making binding

legal agreements to corporatize the entire supply chain from seed to market under one central

administration, the management teams from each individual market through cooperation with

a larger organization can secure cheaper bulk purchases for their entire autonomous markets

at least, to be split up among independent sellers who calculate demands and purchases

through more accurate forecasting, bookkeeping, and better inventory management. The

larger-order opportunities, which can neutralize those larger foreign threats and make a net

gain after that, are not limited to the food sellers. Electronics, consumer goods, religious andany other category of seller can support a division of a district, provincial, regional or

national network of suppliers, purchasers and distribution personnel like any of the larger

foreign corporations do in order to secure cheaper purchase prices and therefore lower costs,

which means more profits and better ability to compete with EDLP competitors.

A primary strength of companies like Tesco Lotus is their advanced, elaborate logistics

and distribution supply chain systems, which make large purchases, giving them the ability to

cut prices below the level of local small retailers and make profits. To truly compete with

foreign competitors and their partners like CP, local markets have to do something very

similar to companies like Tesco even though modern corporate management has not been agreat strength of Thai national businesses people yet. Small business owners can keep their

private properties, continue operating sole proprietorships or partnerships while engaging in

investment in larger corporate-style purchasing organizations, which is what the key to

lowering costs and (re-)acquiring customers who are most likely to travel farther for cheaper

prices is. Speech communication difficulties and determination are likely to be the only real

threats to actual development now that it is established there is a will to change operations.

V. Conclusion

For people who can go out and witness the state of the Thai style traditional open-air

market throughout the nation, the case is rather obvious. In the period of this study, the

concrete floors and vending stand base boards at markets other than OTOP were stained by

years of filth, washed often or not. In markets like Don Prayom and Pratu Chiang Mai, there

were rats scurrying to and fro. Foreign tourists seemed to love the filth for the experience,

but certainly most would not approve of such conditions in their own countries, and the

foreign FDAs and health departments would have shut down these markets long ago.

Cobwebs hung from old light fixtures, signs and roof trusses. Some of the butcher knives

and hot oil were placed in eerie scenes to say the least. Many of the faces () carried


30/34

withered scowls, some were depressed from what appeared to be daily alcohol use at work,

and still others showed unmistakable fear and loathing for other people, poverty, stress,

overpopulation, and weaknesses against the threats of the new big business methods at work

just around the next corner.

Many of the present-day middle aged and older Thai style workers started at their

markets during their early teenage years. A new set of young teenagers has taken up shop

working instead of going to secondary school which they cannot afford or just helping out the

family. There was spirit and life, family and some cultured atmosphere, but the markets have

been worked, and they were a bit tired. With the exceptions of the One Tambon One Project

markets, the state of the facilities was quite bad. There has obviously been quite a lot of

money that has flown through the markets, especially those like Muang Mai, near the US

Consulate, where Hmongs in their black velure tribal clothes drove into with vegetables.

Unmentioned historical reports about Chiang Mai suggest that opium trading, and certainly

raw opium poppy trading were once highly prosperous in and around the city, likely in thesevery same markets along with several other now-illicit drugs which are probably still bought

and sold in small numbers to supplement incomes of underpaid, non-subsidized, overworked

farmers and sellers. The image of the markets and of the farmers cultures have suffered

through all of the legal and social changes of the past 40 years, and what was probably once

the grandparents great big dream at the local Thai style market had by the period of this

survey degraded into one of the places many of the urban hipsters would never be seen at.

Along with the pride of the modern consumer driving customers out of the family owned

and operated open-air markets with the cobwebs, the rats and occasional Burmese worker,

and into the hypermarkets, the malls and other shopping districts, the shame of some failureshad penetrated the local open-air markets. There was confusion in the less organized small

business style of operations that undoubtedly stagnated progress. Being left out of the big

business cultural movements had niche and subjective advantages, but there was a certain

feeling of being left out of the crowd, and for many of these East Asians in the poorer

agricultural and local market sectors, that alienation from the educated business class was just

a little too much unwanted insult to injury at the end of a difficult day full of manual labor for

some, and dull, dirty working conditions paying low wages for all.

There are certainly weaknesses within the general worker population of these local

markets, aside from more organized administrations of OTOP districts, along with macro and

micro threats from outside of the markets, but certainly some long-term shop owner has a son

or daughter with an advanced degree or enough money saved to put a sibling, son, daughter

or family member through an MBA or PhD business program. There are elders who have

experience and there is equity of intellectual property therein. Nearly all of the 352

respondents in this survey study approved improvement efforts for their markets, and those

results are likely to be similar to any found through Thailands impoverished and working

class small business communities at what once was the center of the neighbourhoods trading

. This researcher, thankful to his partner, concludes that the old idiom wherethere is a will, there is a way should hold true even among the non-native English speakershere in Thailand.


31/34

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Fresh Markets v. Hyper Markets - Adam Richard Tanielian - Independent Study IIS-RU

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