Superstores and online shops have an adverse effect on small local shops, where tiny merchants cannot compete with big giants. This problem has occured due to the cheaper purchasing cost in bulk orders. This essay will state that this problem can make farmers and local shops leave the occupation and applying heavy tax on imported goods is the right way.
First and foremost, local shops and farmers are leaving their occupation because they cannot compete with big companies. Supermarkets mostly sell imported goods which look attractive, local goods are ignored by citizens; furthermore, local people cannot maintain the attractiveness like marts. In India, residents are struggling to compete with supermarkets, where people can do all their shopping in single mall, and local shops have limited goods. This demonstrates the negative effect of marts and online shops in society.
However, governments can apply heavy tax on imported goods. These big companies are forced to trade with local shop owners because the same products on import can cost twice the original price, which can encourage local people to open shops for affordable prices. In Nepal, there is an increase in demand of local mangoes because the government banned Indian mangoes which had more than 60% of market share in Nepal. This illustrates the right steps taken by government to tackle this problem.
To conclude, big malls affect negatively toward local shops and farmers, but governments can tackle this problem by applying heavy tax on imported goods. Furthermore, with the tax on foreign products, the demand of local goods will increase.