The Chinese-owned stores are giving the local commercial class headaches

Nov 29, 2012 Features / Columnists, Peeping Tom

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There was a time when if you wanted a specific item, you had to ask around to find out where it could be obtained. Some items were often hard to come by and you were required to go from shop to shop in order to be able to procure what you were looking for.
By and large all that has changed, and changed rapidly ever since the invasion of the commercial sector by stores operated by Chinese nationals. Whatever you want you can find in one or more of these stores. If one does not stock that item, another will.
Obviously if you are looking for a hardware item, you will not go into a clothing store. But once you know the nature of the item you are looking for, you are bound to find it in one of the Chinese-owned stores that have spread extensively in the city over the past two years.
When this invasion of the commercial sector began, there was immediate opposition from elements in the commercial sector. They saw the danger to their survival early. For that they must be given credit.
The moaning that is taking place now is not new. From day one of this commercial invasion, the commercial class developed apprehensions and fears about what it meant for their future.
It did not stand silently and look on. It spoke out. The members began by accusing these stores of underselling them and even questioned how it was that these stores could sell cheap, implying and imputing nefarious motives for the law prices.
The fact is that the arrival of these stores exposed the imperfect competition that was taking place in our commercial sector. It also revealed how Guyanese consumers were being taken advantage of by some of the stores in the country.
They too were sourcing their goods from China but when it was sold in their premises the prices were far higher than what these Chinese-owned stores are now retailing them for.
Immediately, therefore, these Chinese-owned stores made an impact and were enthusiastically supported by the average citizen because the prices were so cheap. You could go into one such store with a handful of dollars and emerge with bags upon bags of items.
Today, these stores have spread all over Georgetown and it is only a matter of time before they expand into other areas. The Guyanese public has been heavily patronizing these stores because bargains are available.
As a result of the support that these stores are receiving, the local commercial store owners have been complaining. And this complaint is likely to continue as the local business community tries to use its political clout to reduce the competition that it now faces and which it seems either unable or unwilling to keep up with.
In the days ahead, Guyanese can look forward to attempts to put down these stores which have provided such a bonanza to local consumers. You can expect to hear arguments that these foreign storeowners do not pay taxes, do not issue receipts and do not invest in the country.
What those who are making these arguments will not concede is that tax avoidance and tax evasion by the local business community is also high, that many in the business community still ship and hold a significant segment of their profits outside of Guyana.
How else does one explain the high demand for foreign exchange relative to supply at a time when forex proceeds are booming because of the increased mineral exports?
They will also conceal the fact that many local businesses are equally guilty of not issuing receipts and in fact many do not provide revenue stamps on the receipts that they do issue.
Other arguments will follow about the quality of the products being sold. Well the same argument can boomerang because the locally owned stores also stock a great deal of products that were made in China.
Most of what comes here from China is of fair quality and good enough for the price and good enough for the small man. For the poor man, obtaining a slightly inferior item that is affordable to him is much better than a more superior quality item which he cannot afford.
The rich folks know where to shop for the pricy items they want. The Chinese-owned stores have been God-send for the poor.
The presence of these Chinese-owned stores has been good for ordinary consumers. It makes shopping easier because you know that whatever you want you can get at one of these stores and at a price that suits your pocket.
All that may soon end. There are indications that some of these stores, particularly those who deal in hardware items, are causing a fall in sales for some persons with connections to the oligarchy in Guyana and since this oligarchy has strong political clout and reach, it is expected to take action to reduce the presence of these stores which have undercut sales volume.

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