Growing Monopoly on Retail

[BigKev]

The CPP group, with the acquisition of Tesco Lotus Group has moved into a serious monopoly position in terms of day-to-day consumer supplies. The group owns Macro (the major wholesaler in Thailand and the supplier of most smaller wholesalers and many "mom and pop" corner stores), CP Supermarkets, CP Foods (fully range of polonies, sausages and other packages foods), Seven 11 and (now) the entire Tesco Lotus network. Already some on the bigger Tesco Minimarts have been re-branded as FreshMark and now sell meat and fresh vegetables. Former Tesco Supermarkets are already being re-branded as lotus's (who advised on that?). Some Supermarkets in crowded locations are starting to sell hot meals squeezing local food outlets. My point - when is it going to Stop and when will the SQUEEZE begin on all us unsuspecting customers. 

[gummy]

2 minutes ago, BigKev said:

The CPP group, with the acquisition of Tesco Lotus Group has moved into a serious monopoly position in terms of day-to-day consumer supplies. The group owns Macro (the major wholesaler in Thailand and the supplier of most smaller wholesalers and many "mom and pop" corner stores), CP Supermarkets, CP Foods (fully range of polonies, sausages and other packages foods), Seven 11 and (now) the entire Tesco Lotus network. Already some on the bigger Tesco Minimarts have been re-branded as FreshMark and now sell meat and fresh vegetables. Former Tesco Supermarkets are already being re-branded as lotus's (who advised on that?). Some Supermarkets in crowded locations are starting to sell hot meals squeezing local food outlets. My point - when is it going to Stop and when will the SQUEEZE begin on all us unsuspecting customers. 

 

Let me put this to you. If someone kept giving you birthday presnts equivalent to a lottery win, would it be in order for you to look favourably upon that  gift giver ?

[BigKev]

Let me add to my 1st posting it is already starting to bite. Some of the supermarkets in locations in building not owned / controlled by the CP group will be closing soon. Try find better brand Polony and Sausages (eg made by Thai-German) in a Lotus Supermarket and you will be told they are out of stock. Return to the cold shelves to find a replacementand the cheery logo staring back at you is CP. Even BetaGrow products are in short supply. 

 

[gummy]

13 minutes ago, BigKev said:

Let me add to my 1st posting it is already starting to bite. Some of the supermarkets in locations in building not owned / controlled by the CP group will be closing soon. Try find better brand Polony and Sausages (eg made by Thai-German) in a Lotus Supermarket and you will be told they are out of stock. Return to the cold shelves to find a replacementand the cheery logo staring back at you is CP. Even BetaGrow products are in short supply. 

But I wonder is this due to a pseudo monopoly  being in place or global supply difficulties due to covid ? Many places are reporting supply issues or could it just be a case they will stop stocking some lines because of the limited demands ? I mean to say seriously, who on earth buys sausages made by Thai-German  as they taste nothing like an imported German sausage only made in Thailand. I like Cumberland sausages and the frozen Cumberland sausages sold in Makro, but made here is tasteless crap in my opinion which is why, when I fancy them, I buy imported ones at Villa market

[worgeordie]

CP just bought back what they used to own, they sold

Lotus after the 97 crash to Tesco to pay off debt, 

The major retailers in Thailand are owned by 3 family's,

that own Big C, plus beverage business ,Central  the Malls,

and Tops, and CP who own everything from producing

lots of food products, wholesale, retail ,they have it covered.

regards worgeordie

 

 

[dmacarelli]

Monopolies are rarely a good thing. Just look at True Visions, for proof of that. And a government that permits them, is in it only for the money, and the public good is always the very last thing they consider. 

[AussieBob]

22 minutes ago, dmacarelli said:

Monopolies are rarely a good thing. Just look at True Visions, for proof of that. And a government that permits them, is in it only for the money, and the public good is always the very last thing they consider. 

So true - especially in Thailand.  That is why in the west there are laws against monopolies. But in Thailand there seems to be no such laws, based upon what I see as extremely wealthy individuals owning so many companies within the same industry. The motor vehicle industry comes to mind - despite massive drops in sales volumes for years now, new car prices are still at the same level they were years ago.   

[JamesE]

10 hours ago, BigKev said:

when will the SQUEEZE begin on all us unsuspecting customers. 

If you're asking the question, it's already started.

The lure of Big Retail is apparently irresistible. My S.O.'s mom used to have a coconut guy, an egg guy, a fruit lady, etc. etc. Lately, the fruit all has stickers and comes from Villa. Only way to "fight" back is to take your business to the local markets. Of course, this means giving up your foods from back home but that's the price you pay.

[thaifarmer]

Personally, I counter this by getting our fresh items (veggies & meat) on the wet markets. There are some stalls on these markets who sell cp stuff, but they are in the minority.

[gummy]

16 hours ago, AussieBob said:

So true - especially in Thailand.  That is why in the west there are laws against monopolies. But in Thailand there seems to be no such laws, based upon what I see as extremely wealthy individuals owning so many companies within the same industry. The motor vehicle industry comes to mind - despite massive drops in sales volumes for years now, new car prices are still at the same level they were years ago.   

You are wrong. There are laws against monoplies in Thailand and it is called the "Competition Act". CPs buying of Tesco was investigated and deemed not to be against the public interest.

 So far so good you may think, well not quite, given the utter corruption in Thailand I would not be confident that members of any organisation or investigatory panel in Thailand would not have been given an inducement to conclude that outcome. What with massive birthday presents to certain people and others the "Competition Act" is a bit like the current government, nothing but a joke and bought by the highest bidder.

[Chaimai]

39 minutes ago, gummy said:

You are wrong. There are laws against monoplies in Thailand and it is called the "Competition Act". CPs buying of Tesco was investigated and deemed not to be against the public interest.

 So far so good you may think, well not quite, given the utter corruption in Thailand I would not be confident that members of any organisation or investigatory panel in Thailand would not have been given an inducement to conclude that outcome. What with massive birthday presents to certain people and others the "Competition Act" is a bit like the current government, nothing but a joke and bought by the highest bidder.

 

 

Thailand does pretty well with laws.

 

It often falls down in the implementation of such laws.

[gummy]

15 minutes ago, Chaimai said:

Thailand does pretty well with laws.

It often falls down in the implementation of such laws.

That is the problem really. Apart from the obvious one or two, their laws are pretty much in common with many countries. As you say it is the implementation of them where it falls down, purely due to corruption. where money "talks"

[Bluesofa]

46 minutes ago, gummy said:

You are wrong. There are laws against monoplies in Thailand and it is called the "Competition Act". CPs buying of Tesco was investigated and deemed not to be against the public interest.

 So far so good you may think, well not quite, given the utter corruption in Thailand I would not be confident that members of any organisation or investigatory panel in Thailand would not have been given an inducement to conclude that outcome. What with massive birthday presents to certain people and others the "Competition Act" is a bit like the current government, nothing but a joke and bought by the highest bidder.

Plus 'given the utter corruption in Thailand' then laws will be passed to make competition virtually impossible.

Take brewing beer for example. This is why there are so very few breweries and no competition.
In order to prevent competition by smaller start-up brewers and to stifle free-market trade:
"Under the regulation, issued in 2000 under the 1950 liquor control act, to be eligible for a brewing licence company must produce more than 10 million litres per year and have paid-up capital of more than 10 million baht."

source: https://www.bangkokpost.com/opinion/opinion/1735823/call-time-on-beer-barons