Thanapon Tangkananan has taken on many challenges since he became involved in the retail business 20 years ago. Thanapon, 50, who last week became the new president of the Thai Retailers Association, now faces perhaps the biggest challenge in his business life.

He comes to the TRA amid conflict in the local retail industry between multinational hypermarkets and small traditional retailers.

The multinationals have aggressively expanded their operations in recent years, with outlets both large and small moving into communities throughout the Kingdom.

Smaller retailers and family stores have been hit hard, but now they are rallying against the giants.

Existing retail regulations are not versatile enough to ensure equal opportunities, allowing foreign retailers to run their business smoothly in Thailand while at the same time protecting small retailers from bankruptcy.

The Commerce Ministry has just ordered hypermarkets and superstores to immediately suspend all expansion plans until a new retail business law is approved and implemented.

"Retail is one of the most dynamic industries and to be part of it you have to deal with challenging issues every day. In this business, you don't know what will happen tomorrow and you need to prepare, have creative new ideas all the time," said Thanapon.

After graduating in business administration from Chulalongkorn University in 1980, Thanapon spent almost 11 years with Caltex, overseeing petrol stations and business development. He joined Carrefour in 1994 and was in charge of property development.

He worked at Carrefour for another 11 years before joining the Central Retail Group (CRC) earlier this year as vice president for business development. Thanapol will help CRC oversee its expansion into markets like Vietnam, China, Malaysia and Indonesia.

"As the new TRA president, I would like to strengthen our retail membership in terms of sharing information and talent, to help [members] make the right decisions over issues of concern," said Thanapon.

"I would like to improve communications between members and between the association and the general public. Education on retail business should be promoted as a course in universities," he said.

Thanapon said small retailers needed to adjust in order to cope in a dynamic retail environment. They need to focus on specialities and manage merchandise to suit consumers in particular locations.

He said G Choy - a small store in the Samyan area of Bangkok - was a very good example of a small traditional shop that had developed its own niche and provided outstanding service in an entrepreneurial style.

"The G Choy store is able to stand up to the competitive modern retail outlets in the area," said Thanapon, adding that with the arrival of multinational retail giants, small and traditional retailers needed to be alert and follow retail trends closely.

Consumers now enjoy wider choices, but they will always shop at store that offer the best benefits, product quality and service.

"While foreign retailers are better than us [Thai retailers] in technology, we can take advantage of local retail and business experience, local culture and connections, and better understanding of the demands and needs of Thai consumers," said Thanapon.

He said the TRA would like to share its ideas and opinions with the au-

thorities before a new retail law is enacted, to ensure the regulations are fair to all stakeholders, both modern and traditional.

The regulations should be concerned with maximum benefit to consumers and the general public, he added.

Kwanchai Rungfapaisarn

The Nation