Which country doesnt want international bigshots to open business on their land. Take the example of Britian, we have Starbucks , American brand that has taken over the market so much so that british coffee/tea shops dont stand a chance in the competition with them , when it comes to revenues.
Where on one hand the Pro’s are that the internationals businesses will bring jobs and revenues into the country, leading to paying taxes .. The Cons remain that they are destroying the local businesses revenue ..
so what do you think, as a consumer and loyal to your country, would you want your government to allow international big shots to enter your local markets? are the gains bigger then the losses? or do you think that although they employ many thousands of people , it is unclear whether collectively they are net creators or destroyers of employment?
Re: Allowing International Businesses to enter local markets ..
As far as they promote healthy competition, its good. It will lead to employment as well as better quality of local products. Only the fittest one survive in the market. There are examples that local businesses gave tough competition to foreign brands, once they improve the quality of product.
On other hand, there are technical issues like transfer pricing, etc whereby most of the profits of a company established and using resources of the country, are transferred outside the country. Somehow, I feel that Tax Treaties between Pakistan and some other country, always give an advantage to that other country from tax perspective.
Re: Allowing International Businesses to enter local markets ..
Agreed, in Pakistan's case the tax treaties are crap .. I know they do it to attract businesses but there are other ways of doing it too rather then showing them the Tax evasion way ...
Here in the UK, we are facing a major issue now, most of the brands that work here and earn sizzling revenues are non-british brands and local brands are feeling the pressure, specially smaller shops, be it in coffee, retailer shopping, eatables etc ..
The entire point being, instead of losing out, businesses should be up for competition and try to improve their own product line but we see them whining more rather then competing with a spirit ..
In Pakistan, do we have any examples of brands that have successfully competed with international brands and showed them the door?
Re: Allowing International Businesses to enter local markets ..
Shoes. Foreign brands can't compete with local shoe manufacturing. The cheaper foreign brands fall behind on quality and the more expensive ones aren't competitive. But the foreign brands aren't out, they just cater to a different market(cheap plastic chappals for the poor and over-priced brand names for those with too much money).
Re: Allowing International Businesses to enter local markets ..
Agreed, in Pakistan's case the tax treaties are crap .. I know they do it to attract businesses but there are other ways of doing it too rather then showing them the Tax evasion way ...
Here in the UK, we are facing a major issue now, most of the brands that work here and earn sizzling revenues are non-british brands and local brands are feeling the pressure, specially smaller shops, be it in coffee, retailer shopping, eatables etc ..
The entire point being, instead of losing out, businesses should be up for competition and try to improve their own product line but we see them whining more rather then competing with a spirit ..
In Pakistan, do we have any examples of brands that have successfully competed with international brands and showed them the door?
I think in food sector (Restaurants), local cuisine like BBQ, Biryani is more popular than fast foods todate. Apart from that if we go towards corporate examples (as I earlier mentioned in another thread), local brands like Tapal tea gave tough competition to multinational brands like Yellow label and Supreme.
Re: Allowing International Businesses to enter local markets ..
but comparing with $ € £ the price is ok, no?
Yes it is. But as Saeed says, pricing should be according to the local market. In Pakistan they spend less on wages, less on the ingredients, less on tax than in the US/UK/Europe. Therefore their prices should be much lower too.
Re: Allowing International Businesses to enter local markets ..
@ Saeed , the chappal example seems spot on .. I too feel that shoes are really good in Pakistan .. though the quality doesnt match that of international brands but definitely Pakistani local businesses win hands down when it comes to the variety and price ..
@ Muqa, I think in a country like Pakistan, where status Quo is an important business driver, people go to international food outlets more out of status then actually enjoying good food ! I genuinely didnt enjoy Mcdonalds in Lahore .. Infact friends took me to Freddies , I think thats a local brand isnt it? that tasted much better ..
Re: Allowing International Businesses to enter local markets ..
Yes it is. But as Saeed says, pricing should be according to the local market. In Pakistan they spend less on wages, less on the ingredients, less on tax than in the US/UK/Europe. Therefore their prices should be much lower too.
This !
This was the trend before , something went wrong in the recent times, I have noticed the same trend in the UAE as well .. they no longer price food at UAE wages .. infact the size of the portions and the price both indicate the same as in the UK ! Shocking trend .. I think we should seriously shun this shady business !
Re: Allowing International Businesses to enter local markets ..
@ Saeed , the chappal example seems spot on .. I too feel that shoes are really good in Pakistan .. though the quality doesnt match that of international brands but definitely Pakistani local businesses win hands down when it comes to the variety and price ..
@ Muqa, I think in a country like Pakistan, where status Quo is an important business driver, people go to international food outlets more out of status then actually enjoying good food ! I genuinely didnt enjoy Mcdonalds in Lahore .. Infact friends took me to Freddies , I think thats a local brand isnt it? that tasted much better ..
Pakistanis can't make proper running shoes. Bata and Service make them but their shoes have soles so hard they'd break you feet. Nike has outlets here, but shelling out Rs 10k just for a shoe can be painful. That's the reason I'm stuck with my 2 year old ones that aren't as pretty as they used to be. But the shoes at English boot house are good, at least the one's for guys. And hai Allah, letting a woman in a shoe shop is like axing one's own foot.
The burgers at Maccy Ds aren't bad but they're just too expensive.
Re: Allowing International Businesses to enter local markets ..
This !
This was the trend before , something went wrong in the recent times, I have noticed the same trend in the UAE as well .. they no longer price food at UAE wages .. infact the size of the portions and the price both indicate the same as in the UK ! Shocking trend .. I think we should seriously shun this shady business !
Don't people in UAE make first world wages? At least they make more than we do over here.
Re: Allowing International Businesses to enter local markets ..
Don't people in UAE make first world wages? At least they make more than we do over here.
The majority of people in the UAE does not make first world wages. It's probably more than what people make in Pakistan but then the cost of living is also much higher.
Those who do make first world wages in the UAE are usually those who moved there from the first world.
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Exactly what Umer said .. The perception is such that UAE gives out loads of money in salary to people working there .. The fact is that they earn in Dirhams and majority dont even earn as much as people do in Pakistan ! I am comparing this with the formula SAlary V/s Expenses ..
