Suppliers complain that the hypercenters allow no recount and only want discounts and more discounts. It is true that with mass marketing we need a very good purchase price to attract the market. It is very tough to deal with international suppliers. However while small retailers are weaker that big makers, big retailers and big makers have a more equal balance. However, suppliers produce for a specific market in which they may have 50 -70 per cent of market share, so they are very strong.
Big retailers have the power to build brand loyalty.
There is still a role for small suppliers. Carrefour uses one thousand suppliers now and we are using a small to launch our own product line. We aim to create loyalty by making our brands different and offering our private label. We are also remodeling our stores to improve our product and are taking actions such as supporting social involvement in the feed children for a better education program. We will do this by opening stores, which requires money, property, and land.