Small Independent Merchants and Transnational Retail Encounters on Main Street: Some Insights from Bangkok

Abstract

The aggressive expansion of retail transnational corporations is changing the face of much of emerging Asia's urban environment and prompting policy-makers to consider responses. Using cross-sectional survey data from 30 districts in Bangkok, this paper explores two issues: the impact of transnational, large-format retail on small, independent merchants; and, the ways in which the latter are attempting to cope with the stress associated with the arrival of the former, based on self-reported subjective measures of immediate marketing responses, sustained marketing efforts and organisational performance. The findings suggest that surviving incumbent merchants compete in different and mostly unfavourable environments compared with the status quo ante, with the overwhelming majority of these incumbents reporting negative impacts. In addition, the various responses of many of the incumbent independent merchants suggest that the latter may be unable to reverse the impact of the large retailers' arrival.