When supermarkets emerged in Hong Kong some 20 years ago, neighbourhood grocery stores became their first victims. Many were driven out of business because they were beaten on both prices and product variety by supermarkets, which benefit from economies of scale.
Now, as Wellcome and ParknShop expand their product mix to include fresh produce, retail meat traders are feeling the pinch too.
If, as the traders allege, the supermarket chains have colluded with Ng Fung Hong, the sole supplier of fresh meat from the mainland, then the authorities should take appropriate action to tackle the unfair trade practice.
The parties concerned have denied collusion, which is difficult to prove and for which evidence is hard to come by. But until the mainland authorities revoke the monopoly wielded by Ng Fung Hong, suspicions that it may have improperly favoured certain buyers will linger.
Indeed, supermarkets have also been selling fresh vegetables and fish at very attractive prices. But this has not provoked any protests from other retailers, because no one is in a position to rig supply.
The bigger issue that all retail sellers of fresh produce need to confront, however, is whether the wet markets will suffer the same fate as the grocery stores.
