Ethnic Change in Marketing Channels: Chinese Middlemen in Thailand

Abstract

Overseas Chinese have traditionally dominated trade and marketing in Southeast Asia. Domination of marketing channels arose in trade contact with the local, subsistence agricultural economy. Chinese traders established their businesses in major trade centers which were connected to the international trade network. They expanded the market network into new areas as local economies grew. Chinese cultural values supported capital accumulation and investment, and Chinese networks provided access to capital, giving them interest in and means to become wholesalers and retailers. Trade contact fosters a transfer of cultural values, and ethnic Thai began acquiring entrepreneurial values. Economic development brought more cash, and Thai could move into lower channel activities more easily. They invested in retailing, and began taking over the lower levels of marketing channels. Successful retailers began investing back into wholesaling. Chinese traders started directing capital accumulated through trading into other sectors of the economy.

Keywords: marketing channels, ethnodomination, economic development, Thailand