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It was understandable. Modern retailers looked more fashionable. Each branch was air-conditioned and treated customers the same. Personnel wore company uniforms, the range of products and their pricing was the same no matter where the stores were located.

Somehow, they looked more appealing than mom-and-pop stores, where some items were covered with dust and some had expired, having sat on shelves for a long time without a proper inventory maintenance system.

But after the prosperous years, many suppliers are crying foul. They say they are being taken advantage of by the modern outlet operators. In return for shelf space at many outlets nationwide, the suppliers are being told to trim their prices to the bone. Certainly, the store operators counter by saying  they have to spend money on the system to distribute the products to outlets nationwide.

Hmm, indeed, the distribution system must be really good to ensure freshness and availability at all times. It is surprising to know that at CP All's 4,400 7-Eleven stores nationwide, all stock comes from three distribution centres.

CP All executives say suppliers are required to deliver their products to the distribution centres. Then, CP All uses its trucks to distribute the products to the convenience stores, located in nearly all 76 provinces.

A few years ago, I ran into an executive of a yoghurt drink company, whose product, though having been around for years and famous among consumers, did not appear on the shelves of any modern trade outlets.

Despite changes in the retailing business, the company still relies on traditional marketing - those ladies who ride bicycles carrying a yellow chilled box of yoghurt bottles.

"Why would I put the product in those channels and cut profit margins in return?"he said. "What if I have a dispute with the outlet owners and it ends up in an agreement to expel my product? Then, if I had fired all those girls and focused solely on the outlets, who would sell the product for me - if that happens?" So far, his theory has been proven right. The company's sales are growing, unstoppably, despite the economic slowdown. Somehow, the method is even better in a time of soaring oil prices. Right now, all suppliers must shoulder the cost of getting products to distribution centres. But they would also  carry the cost for the modern trade operators to deliver the products to their outlets.

As the sales ladies are still riding their bikes, the company does not see any impact from rising oil prices. Keep riding, girls!