Swimming Against the Tide: Why ‘Fast Fish Eat Big Fish’ May Not Be the Holy Grail for CEOs Battling Chinese Capital
Chinese Capital Invasion: A Double-Edged Sword for Thailand
As Chinese capital floods the global market, including Thailand, it poses a dilemma for local businesses. The low costs associated with Chinese products give consumers a wider range of affordable options, but concerns arise regarding the adherence to trade and investment rules in each country.
Private Sector Concerns and the Need for Protection
Various private sectors in Thailand, including restaurant businesses, tourism, and consumer products, have expressed their opinions on the matter. While some have welcomed the influx of Chinese capital, others worry about the lack of protection for local businesses, including the ease of registration and tax compliance.
A New Perspective on Competing with Chinese Capital
Tan Phasakornatee, a renowned businessman, offers a unique perspective on the issue. He notes that in the past, businesses operated under the principle of “big fish eat small fish,” but in today’s fast-paced market, it’s “fast fish eat big fish.” This means that even smaller businesses can thrive if they adapt quickly.
While Chinese capital may be more powerful, Tan emphasizes that this doesn’t mean local businesses have to concede defeat. Instead, they must be agile and innovative in their approach. He advises against competing solely on price, as this can be a losing battle.
However, Tan suggests that entrepreneurs and sellers can still find opportunities by buying products from China and trading them. Many consumers still prefer to purchase from local sellers, and there are gaps in the market that Chinese capital cannot reach.
“In the past, I used to buy things from people who bought them from Alibaba and sold them to me. And today, instead of competing to sell cheaper than them, you must try to find gaps in the market quickly. Buy and sell to people they can’t reach. It can be sold. Maybe it’s a golden opportunity to make your profit too.”
Tan’s perspective offers a fresh approach to competing with Chinese capital, one that focuses on adaptability, innovation, and finding niche markets.