Presently only big players are allowed to sell directly to bulk customers like – Hotels, Restaurants, Canteens and local small or mid-size retailers.
It is quite obvious that with this the end benefit will go to the consumers. With more and more global products in the market, a sense of competition will lead the brands to provide better quality at reasonable costs. As the competition is rising there will be more focused products for each niche.
But on the same side, this will affect a huge chunk of people earning on a daily basis by selling these commodities on very small scale. People selling fruits and vegetable at road side, small shop retailers, and other small players in the category.
People working as middle person between farmers and marketers will get hit very badly. As these retailers may employ their own selected person. And that person is capable of buying all that is for sell, for low price and with his better negotiating strategies.
Talking on packed food, China will get definitely direct advantage of it. As china produces everything on large scale, it is very easy for them to bring down selling cost. So again an added threat to Indian packaged food industry.
As everything else, this change also has power to add benefit by providing better mean & services to consumers in India, and also has potential to badly affect the economy by creating lots of unemployment in India.
But the main question to think about the subject is, you and me after knowing this, if next time go to purchase something, we will approach a local shop with local product or a good value for the money we are spending??
Similarly, a question stands for the local retailers, shopkeepers and manufacturers, Do they have to wait someone to come and destroy their business, before they think of offering a better value to their country and their customers.
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