Thailand
Thailand: Commerce Ministry vows action if Big C trucks stir gripes
The Commerce Ministry is set to exercise the Trade Competition Act if there are complaints from affected parties that Big C’s mobile grocery stores represent unfair trade, says Commerce Minister Sontirat Sontijirawong. But Big C Supercenter reiterated in a statement Wednesday that the Mini Big C mobile grocery store is just one prototype that the company has developed to test the market’s response in Bangkok and surrounding provinces.
Mr Sontirat said the Trade Competition Act lets the ministry pursue legal procedures, particularly concerning the issue of market dominance and unfair trade abuse.
Market dominance is defined as business operators who control over a 50% market share or annual revenue of 1 billion baht, while unfair trade includes the practice of setting prices below production cost and obstructing competitors. “In this case, the ministry is closely monitoring the impact on traditional, small-scale retail businesses,” Mr Sontirat said.
But he acknowledged that in principle Big C can legitimately operate the mobile grocery store and does not need to ask permission from the Internal Trade department, as it is not a new branch establishment. The mobile grocery store is only a new market channel for Big C, Mr Sontirat said.
He said the ministry itself had a previous policy to promote mobile grocery stores using pickup trucks for small operators and low-income earners to increase their income.
But it was Big C that launched a pilot project for grocery pickup trucks ahead of the ministry, he said.
“I will assign the Internal Trade Department and Business Development Department to help traditional grocery stores with pickup trucks to group together to reduce operating costs and upgrade the standard of their mobile grocery stores,” Mr Sontirat said. Market owners and suppliers can also collaborate in the initiative, he said.
The Commerce Ministry has introduced a number of programmes over the years to upgrade the competitiveness of small grocery shops, notably through the Thong Fah Pracha Rat low-cost outlets for low-income earners who hold state-subsidised smart cards. The ministry aims to raise the number of Thong Fah Pracha Rat outlets to 40,000 by year-end and hopes the low-cost shops will become a vital sales space for locally made products, One Tambon One Product goods and farm products in remote areas.
More than 20,000 shops registered with the Commerce Ministry as Thong Fah Pracha Rat shops in the first phase, which started last Oct 1. The scheme is now in the second phase.
Big C Supercenter created the Mini Big C grocery mobile stores for communities where it cannot open outlets or there are no competing stores. The mobile stores provide a range of goods, including ready-to-eat meals and instant noodles.
Mini Big C mobile stores first appeared last November at a charity event to raise funds for hospitals conducted by Athiwara “Toon” Kongmalai, a member of the popular rock band Bodyslam.
The Mini Big C mobile store provided free food, drinks, pharmaceuticals and other products at the event.
Source: https://www.bangkokpost.com/business/news/1436835/commerce-ministry-vows-action-if-big-c-trucks-stir-gripes