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    Impact of MNC On Retailmarket

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    Guru Kandhan

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    Impact of MNC On Retailmarket

    Uploaded by

    Guru Kandhan
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    impact of mnc on retailmarket

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    16 views15 pages

    Impact of MNC On Retailmarket

    Uploaded by

    Guru Kandhan

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    MNC ROLE IN ORGANIZED

    RETAIL FORMAT

    BY
    K.GURU
    WHAT IS MNC?
     A enterprise that manages production
    or delivers services in more than
    one country.
     having its management headquarters
    in one country, known as home
    country
     operates in several other
    countries, known as host countries.
     Getting ¼th of its income from its
    international operation.
    INDIAN RETAIL MARKET
    • Pillar of Indian economy
    • Accounts for 14 to 15 % of
    GDP
    • One of the top five
    retail markets in the
    world
    • 1.2 billion people are engaged
    in it
    • Employs about 40
    COMBINATION OF INDIAN RETAIL
    MARKET

    23%

    31% Big Retailers

    Small Retailers

    Hawkers

    Push Cart
    15% 31%
    Vendors
    THE GENERAL IMPACTS OF
    MNCs ENTRY IN
    RETAILING
     Accelerate retail market growth
     Farmers will benefit
     Foreign brands will promote healthy
    competition in market
     Push to Infrastructure
     Push to productivity
     Customers feel that retail stores offer
    better deals
    17% No impact on
    employement
    48%
    There is a impact
    on
    35% employement
    Cant say
    CURRENT
    SCENARIO
    • The Indian retail market employs about
    40 million people.
    • A majority of mom-and-pop shops are
    very small in size below 50 sq. ft.
    • Last resort job opportunity of many of the
    low- skilled working population.
    Recruitment of
    employees
    • R e t a i l s h o p s use t o recruit
    individuals with SSC a n d
    HSC q u a l i fi c a ti o n ,
    • B ut n o w t h e b a s i c c r i t e r i a i s
    s p e c i a l i z a ti o n in business a r e a s
    • When t h e d o o r s a r e o p e n e d f o r t h e
    MNCs t h e r e w o u l d be a m o r e
    p r e s s u r e o n r e c r u i ti n g i n d i v i d u a l s
    s p e c i a l i z e d in t h i s a r e a .
    • C o n s e q u e n ti a l l y t h e u n s k i l l e d
    • The issue of employment should not only be
    assessed from the LMIG dependent on mom-and-
    pop shops
    • but also from the overall LMIG population
    • LMIG people already employed in mom-and-pop
    shops may be adversely affected
    • But emergence of the organized retail sector will create
    new jobs for a different section of LMIG
    Can FDI in Retail create 10 million jobs
    in 3 years?
    • The Commerce Minister has claimed that
    FDI in retail will create 10 million jobs in 3
    years with 4 million jobs created directly and
    the rest in the backend logistics.

    • It is not possible.
    EMPLOYEE STRENGTH IN TOP
    FOUR MNC RETAILERS
    MNC NUMBER TOTAL AtfERAGE
    OF NUMBER EMPLOY
    STORES OF EE PER
    WORLD EMPLOYEE STORE
    WIDE S
    WAL MART 9,826 21,00,000 214

    CARREFOUR 15,937 4,71,755 30

    METRO 2,131 2,83,280 133

    TESCO 5,380 4,92,714 92


    Positive impacts
    CONCLUSION
    • A few thousand jobs will not
    compensate for the millions of
    livelihoods destroyed by MNCs.
    • A person at MNCs cash register might
    be Unskilled
    • But India’s small traders are their own
    purchasers and marketing managers.

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