Large businesses have big budgets for marketing and promotion and as a result, people gravitate towards buying their products. What problem does this cause? What could be done to encourage people to buy local product?

Major conglomerates have been increasing their market share by spending enormously on advertisements.
This
has caused people to be unconsciously biased, thereby preferring branded products over local made, which has caused unemployment for these local industries. The government along with private sectors need to come together to support the small- scale businesses. Most of the large- scale companies carry out attractive campaigns on television and digital media along with appealing deals, which have influenced the public to purchase their products.
On the other hand
, local traders have a tight budget;
therefore
, they are unable to spend on ads or marketing.
This
has caused extraordinary revenue loss for small scale industries and local retailers which has resulted in job losses.
For instance
, supermarkets
such
as Walmart and Big Bazaar market imported garments from China with attractive discounts,
this
has resulted in the shutdown of local cloths manufacturing industries. In order to overcome
this
grave situation, the authority needs to formalize special policies for small retailers. The government can create an online portal with the support of IT companies
such
as Accenture or Infosys, where local traders can publish their products.
Furthermore
, major e-commerce giants
such
as Amazon, Flipkart, etc. should promote locally made goods on their platform, as part of their social development goals. If these initiatives are taken, it will attract more people to local shops, thereby improving their business. To conclude, large organizations spend substantially on advertisements to market their products, which has resulted in huge financial losses to rural industries. To counter that, the government and private firms need to collaborate and provide an online platform for these vendors so that they can have a level playing field to compete with big corporations.
Submitted by hariskamal29 on

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Answer the 'Problem and Solution' topic

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  • Conclusion

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