The increasing concentration has generated strong competition among retail establishments, which has translated into lower retailing margins and benefits to consumers.

Mr. Deunden Nikomborirak, Research Director for Economic Governance,

The growth in concentration in retailing has also given rise to a number of concerns about anti competitive behaviour of major retailers vis à vis other competitors, and abuses of buyers' power with respect to suppliers of products and consumers.

This was evidence of resale price maintenance, which affects intrabrand competition and limits the right of the retailer to apply his own sale prices.

Large retailers may also engage in selling below cost and predatory pricing whereby prices are cut aggressively to force competitors to sell at a loss.

Managing the process is important for the successful opening up of the distribution sector to ensure competition and allow the benefits to flow to consumers.

The fresh food supermarket war has escalated, and have become a phenomenal topic in the new retail sector. Just what is new in new retail?

The mature character of the industry in developed countries, characterized by high competition and low profitability, as well as domestic regulation restricting large store development and hindering growth in the domestic market, has encouraged international strategies by major retailers.

In the majority of developing countries, competition policy frameworks tend to be weak, and opening up the retail sector can lead to concentration of providers in profitable segments of the country.

The retail sector includes two main types of retailers store and non store retailers.

Producers are also engaging in direct sales to consumers through on line retailing, bypassing retailers.

Retail trade 353

Cases of conditional sales, as practices which hamper free competition, fall into three (3) types

Loss leader selling thus creates a dangerous obstacle to competition.

The top 100 retailers (see table 3) account for 25 per cent of worldwide retailing sales.

Retail fuel dealers

Wholesale and retail trade

27. Retail and wholesale

Another source of competitive advantages relates to better managerial and marketing expertise.

The Euro Retailer Produce Working Group (EUREP) is a European based trade organization for retailers.

In the service sector, the decline is even worse than in manufacturing, because services are heavily regulated and partially closed to foreign competition. In the retail sector, which employs a huge number of Japan s unskilled workers the so called mom and pop shops Japanese productivity is now 25 lower than in Western Europe.

Growing use by retailers of own brands and discount retailing have also been driving prices down significantly.

With 15 million retail outlets, India has the highest retail outlet density in the world.

Wholesale and retail petrol

Retail trade and repair services

Market access restrictions such as foreign ownership limitations or import restrictions discriminatory operating and planning regulations, including zoning, aimed at limiting the market power of the incumbents and price control practices to protect competitors have often been used to ensure retail competition.

Significantly broaden distribution via retail and the Internet.

A third anti competitive practice, known as loss leader selling, is also prohibited by the ordinance.

The distribution sector includes commission agents, wholesalers and retailers who act as enablers of trade.

The informal retailing sector will have a role to play once markets are opened and formal retailing expands.

Capital, competing for a slice of the pie, has made the retail market, represented by fresh food supermarkets, a powder keg.

In particular, online retail sales of physical goods amounted to approximately RMB5.08 trillion, while online retail sales of services amounted to nearly RMB1.49 trillion.

In Europe, for example, on line retailing accounts for 2 per cent of total grocery sales, but it is growing by 50 per cent annually.

Magical new retail

China s E Tail Revolution

The retail sector is characterized by economies of scale and scope as well as vertical integration and the existence of large retail chains.

Analysis shows that at present, new retail competition in Tier 1 cities is still a long way from a red ocean situation, and there is still plenty of Tier 2 cities yet to be explored. Enormous opportunities and potential exist in the market.

The government can, say, impose zoning regulations, help small retailers find nbsp specialized niches in the market, or provide skills training to displaced workers. The survival of artisanal retailers should not be used as an excuse to introduce or uphold business regulations that ultimately protect the incumbent rich.

Retailers are able to access and tap different cost structures in different countries and are becoming global.

Informal retailers could become the suppliers or the customers of formal retailers, or their franchises.

The process of opening the retail sector in China began in 1992 when foreign investment was allowed in retailing on a trial basis.

Retailers are distributors selling to end consumers.

The retailing sector has been witnessing increasing competition and concentration, mainly through the establishment and expansion of chain stores emphasis on large stores the increasing use of technology and growing internationalization of the whole supply chain.

Foreign sales represent a significant share in total sales of the main European retailers.

Some products enter the market through wholesalers who in turn distribute the products to a variety of retailers, while in other cases the producer sells directly to the retailer.