Multinational companies tend to spend lucrative amounts on campaignings and publicity. Many individuals do get attracted to buying their merchandise rather than local goods.
This
has a tremendous impact on native sellers as their margins are already low and sales plunge,
this
ultimately leads to their closure.
This
can be tackled by getting aid from country rulers and private equity firms.
To being with, one of the problems is big brands have a great edge over their minor competitors due to the fact that they have great financial freedom as their sales and profits are higher.
In addition
, these marketings on social media and television
further
surge their business significantly.
However
, directly or indirectly local sellers are the most affected people. As everyone is preferring branded goods over these, their business gets pressurized as they operate on low finances and still need to pay for rent, salaries, inventory and tax.
Firstly
,
this
demotivates new and young entrepreneurs as they won't be able to find themselves succeeding in
this
market.
Secondly
, existing companies would be on the verge of bankruptcy thereby getting acquired by big players of the game.
This
would lead to a dramatic soar in the number of unemployed people.
For instance
, Abibhus a startup transportation company which though provided the best amenities while travelling owing to the fact that they run on a small budget could spend on ads.
Thus
, after 3 years it had to be closed due to greater competition.
On the other hand
, the best possible solution for
this
situation is it can be modified completely if the governments intervene and
also
with help of private equities.
Thereafter
, an immediate practical solution is subsidy needs to be provided to the native merchants on raw materials as they play a crucial role in pricing.
Moreover
, having the chance the procure raw materials at a cheaper rate would magnificently improve capabilities for the manufacturer to improvise quality extremely. To illustrate it in detail, Tanam Jewel, an ancient antique jewellery maker known for their faced a similar issue where their opponents starting acquiring the market stake by increasing the ad budget.
However
, as governments started supporting locals by providing mineral gold at subsidy it boosted the store's sales drastically.
To conclude, bigger associations by having good economical status aids them to capture a stake in the markets by exhibiting their products in a great manner.
As a result
,
this
leads to the breakdown of smaller merchants and entrepreneurs.
On the contrary
, by the intervention of country rulers in
this
by providing facilities to
such
as tax reduction will definitely yield good results for the minor seller as well.