He was speaking in Chiang Rai at the third seminar organised by the Business Development Department and entitled "Developing Thai Retail Enterprises". The forum concluded by urging about 350 local retailers to develop their operational efficiency.

"The Act, which will soon be implemented, will be powerless to help small retailers stay in business unless they have developed themselves to compete with modern traders," Krirk-krai said.

Early last week, the Cabinet approved a draft of the Retail Business Act. It is likely to go to the National Legislative Assembly within the next two months and be implemented within the current government's term.

Krirk-krai suggested local retailers take four steps to improve their management. First, they should group together to strengthen their bargaining power with suppliers. They should seek an alliance of business partners to promote business in their areas, both to gain mutual benefit and to serve customer demand.

Second, they should cooperate with nearby retailers to create joint promotional campaigns. For instance, local retailers should adopt promotional periods for various

kinds of goods or discount strategies to attract more customers.

Third, small retailers should change their product displays to attract customers' eyes better.

Finally, he suggested local retailers improve their surrounding environment, in order to improve customer satisfaction.

Many traditional retailers have complained about being forced out of business by multinationals.

In fact, it is time for local retailers to upgrade their business standards, strengthen their competitiveness and fall back on serving the interests of the customers, Krirk-krai said.

Although the Business Development Department reported that 60,529 retail and wholesale companies had closed down between 2001 and last November, 3,000 small retailers have registered new businesses, proving that opportunities still exist despite high competition from giant retailers.

Meanwhile, Krirk-krai reaffirmed that Thailand would achieve its growth target of 12.5 per cent for exports, reaching a total value of US$145 billion (Bt5 trillion) this year, although the stronger baht has hurt some industrial sectors.

To help achieve the target, Krirk-krai is leading a group of 50 exporters and government officials to survey a new road linking Thailand with Laos and China. Route R3E, linking Chiang Rai's Chiang Khong district with Bo Kaew in Laos and Kunming in China's Yunnan province, should be finished in October.

Petchanet Pratruangkrai

The Nation

Chiang Rai