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Hypermarkets have killed local entrepreneurial opportunities PDF Print
Thursday, 30 October 2008 15:39
At the rate the hypermarkets are sprouting across the country, one wonders why, how come, who and what of it all.Today, almost every state, township and city is not spared as hypermarkets rise within months apart from each other.

Those with vested interests will argue that hypermarkets are in line with our nation's development status. They will silence inquiring minds with 'this is all about progress'; some will rein in political clout and maintain that the consumers will benefit from cheaper prices and economies of scale.

In a nutshell, we know these are all pure utilitarian anchored goals staunchly guarded by the dangerous libertarian philosphies that fuel greed and self-interst at the expense of the consumers. The silent truth is that at the back of such claims lies the harsh reality.

Hypermarkets are a means for the few to enrich themselves further through huge profits from high volume sales. Period.

All the claim of job opportunities and savings for the consumer are close to pure bullshit (pardon for the analogy).

How could it be when foreign labor fills the shop floor of hypermarkets?

How could it be when the consumer would have spent on fuel, time and in buying unwanted items as he falls prey to the aggressive and subtle product displays and hidden bargains?

Beneath all this is the fact that locals are being denied the opportunity to nurture and grow the cottage styled friendly neighborhood kedai runcit.

Our youths who end up doing misfit jobs or remaining disillusioned owing to lack of employment after graduating from the scores of institutions, could well have gone on decently with life by setting up a kedai runcit of their own or taking over their old parents' business.

Such outlets would also have offered our young schooling children to be gainfully employed in these neighborhood shops during school holidays to gain experience and yet keep away from social ills.

Retired housewives with grown-up children could easily find themselves doing some few hours daily at these grocery shops in their tamans.

We could have raised a nationwide cottage industry of our very own retailing business in the hundreds of thousands of tamans that are fast filling every available piece of land. Such ventures could be worth far, far more than the mere ringgit-fortunes that only a few enjoy through their hypermarket business.

Every neighborhood shop offers immense opportunities for social bonding. relationships are nurtured on a daily basis at its premises.

We also save on fuel and reduce traffic on the roads. And the huge space taken up hypermarkets can better serve us as pockets of green lungs and a place to rest and recreate for free. Not everything is economics. There needs to space and time for food for the soul, mind and body too.

But no. Through sheer greed of a few elite and wealthy business minds, the working population has again being denied of entrepreneurial opportunities that could have offered numerous families though not a filthy rich lifestyle, but at least being able to lead a decent life.

Who will answer for this big time robbery?

- J. D. Lovrenciear , Semenyih

Comments (22)Add Comment
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written by michael chick, October 30, 2008 16:04:35
With all due respect, I do have to disagree.
This is a World where Skill and Merit determine Success.
Playing the game otherwise=UMNO.
Graduates are not guaranteed a job. Good Grades are only a guarantee of a prettier certificate and a handshake on Graduation Day. The real skill comes on the first Day of the Job. That would be called being "Street Smart".
All Employees know that Freshies are only hired coz they're cheap. They will take the next 20 years figuring out their skills, or the lack of it. No job is pure regurgitation of the memorized texts. It's the ability to improve. On a Daily Basis.
In reference to your letter, for those who prefer, go back to the Kedai Runcit.

By all means why not? And for those who don't, stick to the air-conditioned places. There is a reason for "Economies of Scale". And if, or should your friendly Neighbourhood Shopkeeper become so successful (y'know, the one you "bonded with") earn enough to open something bigger than Mega Mall, are you going to write this same letter to boycott him?
All said and done, getting rid of UMNO will be the best thing that can happen to this country. They don't play by the rules. They are the ones who "quota" everything regardless of skill, or the lack of it.

Nandri
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written by alpha100, October 30, 2008 16:05:45
Well, I cook daily and so I do quite a bit of shopping! To share with everyone here I stay in Kepong Baru. And I find that a lot of stuff sold in retail shops and market is much cheaper then those sold in nearby hypermarket/supermart. eg. sardins(famous brand)/most canned food actually even if on discount at hypermart, fruits, eggs, shampoo,rice, fish and veg at KB market (and its fresh) etc, etc, etc. People should discard mentality that hypermart is cheaper. Of course hypermart looks and smell cleaner and air cond! Anyway, the few retail shops in my vicinity is doing well.
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written by AuntyG, October 30, 2008 16:07:07
Dont entirely agree with this article.
Whilst I agree to support our local sundry shop fella and not see him go out of business, the hypermarkets have provided a one-stop shopping centre and lower prices of goods due to economy of scales.
The cost savings to the ordinary man in the street is no small matter.
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written by alpha100, October 30, 2008 16:15:44
To add, rakyat should be smart in doing their daily shopping! Do compare prices of retail / wet mart and hypermart at your vicinity to have good cost saving! Don't assume that hypermart is cheaper cos they bigger!
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written by sltemp, October 30, 2008 16:28:44
Like alpha100 said, not everything at hypermarkets are cheaper. I find this to be very true. Because many people seldom bother to check on prices, especially busy workers who shop once in 1 or 2 weeks, they are not aware that prices at hypermarkets are not cheaper. Even if they find out some stuffs are more expensive, they are willing to pay for the convenience of getting everything at the same place.

Perhaps provisions shops in Malaysia should do the same as their peers in Singapore, where many of them grouped together to form a company to purchase in bulk from manufacturers and distributors to get better prices. This company is now even listed in the Singapore Stock Exchange! So, not only provision shop owners can get lower prices, they also own shares in their own public-listed company and get extra profits from there.

Small provisions shops can still survive if they study where to set up shop. 7-Eleven shops are doing well despite their higher than usual prices. It is a matter of meeting the needs of people.
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written by densemy, October 30, 2008 16:29:48
As if the writing wasnt on the wall. In the rest of the world supermarkets replaced the corner store/market stall decades ago. But like in everything else Malaysia is way behind the times

As well local entrepreneurs deserve to die. The operate as though the world owes them a living. They stock their shelves with rubbish (Malaysians loves cheap) that's if their shelves are stocked at all. They provide the same limited range of goods that every other store in the vicinity provides... ie the things that sell. So there is no specialisation and if you dont take what they have on offer you have no alternative. They dont advertise and if they do they call themselves by some inane name like Hung Low Trading Sdn Bhd... so you have no idea what business they are in. How about the Hung Low V belt Specialists Sdn Bhd ??? Show some imagination.

Do they know about business plans and cash flow budgetting... unlikely and the govt will never help them progress in this area

... and I could go on an on an on

But basically they are doomed, yet still developers continue to build the same shop house format with space restrictions, no parking and difficult access.

Its such a good thing that Malaysians always know what is right and effective
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written by boeytahan, October 30, 2008 16:50:59
Menon,

Another star for you in this article to notify the general public.

Lots of flyers and newspaper ads going on dialy on whose expense? They cost heaps and I believe that those hypermarkets pass the bucks to the consumers.

Their offered items are not even 0.01 percent of their stocked items. Just imagine. Mind you, some of their offered things are even cost highier that those in sundry shops or pasar malams'
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written by Krepot, October 30, 2008 17:53:38
I can't vouch for enterprunership or social bonding with traditional 'kedai runcit', but it is a known fact, hypermarkets hoodwink customers to buy goods at a higher price.

If you don't know the price of goods like the back of your hand, you are bound to get 'cheated' by these hypermarket.

Never trust the so called 'bargain bins' or '100 value items'. They will NEVER give you a guarantee that it is the CHEAPEST.

You have to be a smart buyer.

Buyer Beware
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written by Ben, October 30, 2008 17:53:40
Certainly no complaints from us as we do get good deals from the hypermarkets. The service is polite and environment is clean. We also get mailers to inform us in advance about promotional offers so we can stretch our ringgit which is getting smaller, no thanks to gomen.

On the other side of the coin, we see mini-markets or provision shop as we used to call them are dying slowly because they cannot compete. Ironically, some resort to buying in bulk from hypermarts to survive. So these guys could be around and making some profits along the way. They have even found a new market serving the millions of foreign workers who do not have transport to move freely.

So, please don't gripe about hypermarts and better services available. Why, they even offer jobs to the unemployed graduates who otherwise will be gallivanting about the shopping malls. Let's recognize positive development for what it is; something good unless we cannot recognize what is good.

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written by Ali Cordoba, October 30, 2008 18:47:33
http://www.worldfutures.info/E...onomy.html

Save the small businesses, they are the lifeblood of any economy in the world. Malaysia need to do more on that aspect to save the small people but of course do not destroy the big ones. The small man and woman selling nasi lemak, goreng pisang and the small shops selling retail items deserve to be protected, given attention in order for the populace to weather the financial storm with peace of mind!
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written by budakindia, October 30, 2008 20:50:35
Ask Sharir who is the supposed consumer affairs minister! He should be the corporate affairs minister! smilies/cheesy.gif
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written by Joelim, October 30, 2008 20:51:50
The Star today reported a 17 year old boy named Mustakim Minsawi fell off his motorbike and died trying to apprenhend 2 snatch thieves near Dataran Merdeka. He was thrown off his bike after it was kicked by the thieves' accomplices who came out of nowhere. He died of head injuries. For his courageous act and thoughtfulness who put others above himself, Mustakim Minsawi is undoubtedly a HERO.

May I ask Malaysia Today to organise an urgent donation to help the family of Mustakim Minsawi who are in bereavement as I write this message. Bloggers please donate generously to our HERO.

Joe Lim
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written by sarawakian, October 30, 2008 22:05:47
hmm.. Mahathir created Proton and slapped all kinds of taxes on imported foreign cars to protect Proton. maybe now a new "tax" can be invented to protect the local kedai runcit??

oh yes.. at the same time, we should all throw away computers and other computing devices and force our children to learn the abacus and use pebbles for counting..

what a silly post! more protectionist schemes to save some silly asses.

hypermarkets are here to stay. if the local "kedai runcit" can't survive, they should evolve. they strive on providing everyday needs to local residents with a personal touch. if they lose their touch, they're gone. no one is going to run down to a hypermarket for a bag of sugar or a tray of eggs... at least no one in their right mind.

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written by yipck, October 30, 2008 22:16:07
Hypermarket is good. It offers wide range of products to consumer.
If we still stick with the old sundry shop type... we will never come to know so many good things in the market available.

It helps transform our life.

As for the hiring of foreigner.. haiz.. its because no one want to do the job and some not even hardworking at all at their job.
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written by Taufique, October 31, 2008 01:10:55
usually the local markets in my area is enough for my daily needs. Even if the local supermarkets are a tiny bit pricier, I can just walk to them, instead of getting stuck in traffic jam, travelling a little furthur just to get a few ringgit off total, the time/petrol/parking costs saved justifies it.

on the other hand, if i so happen to be in a hypermart area, i'll try to make a well informed purchase there too. The large varities help, but doesnt really make a difference.
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written by MalaysianFirst, October 31, 2008 02:48:01
Sarawakian, you framed your views very well. I completely agree with you. I cannot understand what caused Lovrenciear to post such a non-starter. I don't mean to sound condescending but in the marketplace, there is such a thing called supply and demand. Look at the big hotels. They too have taken over the role of the traditional rumah tumpangan. Like hotels, the hypers are there because they there is demand. The hypers, the 24hrs convenience store and the kedai runcit are all business risks in a free economy. If they are wrong, they go bankrupt just like everybody else. Protectionist policies will only stifle growth and are only endorsed by the selfish. Our NEP is a good example.

Anyway, big is not necessarily a "sign of progress". It's all about market trends. Cars went from big to small. Dresses went from short to very short, then to long, and back to short again. Hair styles went from long to short to long again. Cinemas has gone from small to big to small, and finally "big screens" have gone into our homes. Houses from very big to big, then to small and now big again. Consumers' tastes, wants and needs will keep changing, evolving. No one can say for certain that hypers are here to stay. Who knows, the corner kedai runcit might become fashionable again.

The hypers didn't put a gun to your head to demand you to shop there. The choice is entirely yours.
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written by DontPlayGod, October 31, 2008 11:05:52
I have to disagree with the writer of the above article.

My wife now hardly buys her vegetables, fish, and sundries from the neighbourhood sundry shops or wet markets. For one very important thing, we don't get cheated by the great fluctuating prices(even within a few minutes of our shopping at wet markets/sundry shops), not to mention the gross cheating of the weighing scales(when your head is turned away momentarily). We are sick of all this cheating and the anger at finding out when we arrive home.

Vegetables at Supermarkets are so much cheaper, and the weighing is accurate. We have have enough of blatant cheating by the wet markets and sundry shops. If they close down, then they deserve it.
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written by tbsbidayuh, October 31, 2008 11:53:40
Pak Lah go or Carfeur out!!
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written by InEffective, October 31, 2008 12:16:46

Well in many countries, many townships resisted to entry of hypermarkets like Walmart into their neighborhoods - the smaller mom & pop shops simply could not compete with Walmart value propositions (price, convenience, everything-under-one-roof).

So a lot of mom-pop retailers went out of business. In Mexico, the retailers and suppliers, colluded to shut out Walmart from entering.

Its an interested debate, because as Malaysian's we have some choices and accountability here -

if we award all our business to hypermarkets like Walmart (and in the process drive all mom-pop stores out of business), all market and pricing power is transferred to the hypermarkets (and suppliers will suffer from pricing pressure, customers will suffer from lack of choice/alternative providers and eventually will have to be price-takers and could be held to price-ransom)

Its just like governance - if you award all your votes (faith, confidence) to a certain political party mindlessly, you effectively transferred the governance power to politicians - which we now see how disastrous and risky that can be.

Always need a balance (imbalances no good - our former premier is quite passionate about all types of imbalances)

Its your choice... (choose wisely)
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written by stormdnation, October 31, 2008 14:41:16
DontplayGod,
if you were to say that mini market cheat people, it would be the minority. Do you know how hard it is to maintain the mini market? My parents owned a shop and its getting tougher. When product was send to us, they promise they will change if the food product is going to expire. So, we just take and help them sell. We pay and when the food expire, we call them up. They did not even come!!! We rugi so much!!!

To the rest:
More ever, the electricity bills go up to 500 per month!! hey, we are not that rich! Our customer mainly are foreigner or workers. Malaysian? they are the minority. All of them would say that supermarket or hypermarket is cheaper , got air con etc.!!! Yes, they have much bigger choice! You can see new things! But it KILL us the SME! We invested so much in it yet the return is just so LOW! The kimsiap stingy attitude is still there! I know all of you want to save. So do we. We too give our best to the customer!

There are so many hypermarket and malls mushrooming! hey, you need so much for what! Take for instance Subang and Puchong. The mall is jus within 2-3 KM~ The GOV never think of those SME ah! Approve so many license for them to grow and make the smaller ones die!! Who is being cruel? Say want to help the SME by giving loan and etc!!!! Now? This is what you call as help?
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written by Taiping60, November 01, 2008 13:13:40
I do not agree with your view. Do not stop what is good for the general public. If we have something better, compete out there and I am sure the better one will win eventually. Don't do the same thing like what we did in education. Go for merit and may be best win.
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