Will entry of leading MNC's in retail sector affect the small retailers?

Answer 1

It is definitely going to affect the small retailers, but it will be a great advantage for customers who will get lower cost products, better quality and More options compared to existing small retailers.
Small retailers can co-exist in this market by providing better services catering to existing customer base and getting more organised. They still will have advantage towards catering to the taste of local people.

Over all entry of MNC will boost the profitability of local farmers and producers as these MNC like to purchase directly without involving middleman ( who eat and inflate lot of price).

So I am extremely positive and comfortable with MNC entering retail sector. It is win in situation for consumers, producers ( produce and commercial items) and help in organising the retail sector.

Good Luck

Sam

Answer 2

Yes, it will affect the small retailers because small retailers are ones who invest small amount in procuring goods and so are in a situation to desperately sell that to earn some profits and to continue with the business in the future.

Whereas, big MNC's invest huge money .. so they can afford a material for less rate when compared to what small retailers offer.

Even if they face crisis they can easily overcome it or simply stop the business. It will only be a small loss for them.
But, in these circumstances for a small retailer his complete life is lost.

Answer 3

MNC Multi national Company.CAn it be compared with small retailers.So many Multinational NAtional Companies were invited with Red- Carpet, there by our Group of Companies like Ashok Leyland,TVS group of Companies,TICycles and so on and so forth could not able to compete with those companies.It is not because of the incompetance of our Companies.But because of importance ,infrastucture facities and other aminities given to those MNC's and step mother treatment given to our companies. When such were the position even for our Indian companies who had been in the business for long a period with all exposure.Our small retailer do not have the withstanding power to compete with the red-carpet invitee MNC.

Answer 4

No, even the more avenue shall come to open for small traders, because big MNCs will negotiate with the manufacturers in volumes,