impact of MNC in retail employement

1. IMPACT OF MNCs ENTRY IN
RETAIL MARKET
-EMPLOYEMENT
GENERATION
BY
A.GURU SELVAN
II nd YEAR B.COM
THIAGARAJAR ARTS COLLEGE
MADURAI-09

2. 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.

3. 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 million
Indians.

4. COMBINATION OF INDIAN RETAIL
MARKET
23%
31% Big Retailers
Small Retailers
Hawkers
Push Cart
15% 31%
Vendors

5. 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

6. 17% No impact on
employement
48%
There is a impact
on employement
35%
Cant say

7. 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.

8. Recruitment of employees
• Retail shops use to recruit
individuals with SSC and HSC
qualification,
• But now the basic criteria is
specialization in business areas
• When the doors are opened for the
MNCs there would be a more
pressure on recruiting individuals
specialized in this area.
• Consequentially the unskilled

9. • 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

10. 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.

11. EMPLOYEE STRENGTH IN TOP
FOUR MNC RETAILERS
MNC NUMBER TOTAL AVERAGE
OF STORES NUMBER EMPLOYEE
WORLD OF PER STORE
WIDE EMPLOYEES
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

12. Positive impacts

14. 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.