Post globalisation era in greater mumbai june 2006 efi – solar foundation mumbai



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RETAIL (SHOPS) SECTOR


The rate at which malls and stores are springing-up across the city is an apt indication of the enormity of retail revolution. Not only do we see real estate builders opening malls in the city, but even corporate houses and international organisations are setting up (or preparing to set up) shops in the city. The ambitious expansion plans to grab a bigger pie of the retail business is creating several new job opportunities for skilled and unskilled individuals. It is estimated that the organised retail sector would grow approximately 10-times over the next five years, and it would be largely due to the high purchasing power of consumers in the city. As for the unorganised sector (family-run businesses), they are likely to be at the receiving end due to lack of financial muscle to take on large format stores. Business uncertainty amongst the unorganised players is a cause of major concern for the sector as job security is likely to take a severe beating over the next few years. Unorganised sector offers customer-friendly services such as sale-on-credit, home delivery, etc.
As for organised players who are growing rapidly, in all likelihood the pressure would continue to build due to lack of trained manpower at every level. The sector is already facing an acute shortage of trained manpower especially at the management level. Allowing FDI in retailing sector and entry of international majors is likely to put further pressure on availability of trained and skilled manpower. Increased use of computers is likely to help retail stores cut manpower to certain extent, but it would not be a long-term solution.
A decade ago, retail shops used to recruit individuals with SSC and HSC qualification, but now the basic criteria with majority of the stores is graduation with specialisation in business areas like sales, accounts, administration, merchandising, shop floor management, etc. In the near future with more and more educational institutes offering retailing courses with specialisations in merchandising, customer service, client management, shop managers, etc. the scenario is expected to get better. Understandably, management colleges and retail training institutes would continue to be the fountainhead for qualified and trained personnel for the next few years.
As far as job profiles are concerned, the future belongs to specialised people like designers, merchandisers, shop floor managers and so on, as it is required that people have thorough understanding of products and customers. Presently, the retail sector is spending a miniscule amount on employee training and that too is visible only with large format stores and malls like Shoppers’ Stop, Crossroads, etc. The indirect employment generated is largely in the area of low-end jobs and logistics, i.e. distribution, housekeeping, security, packaging, transportation and so on.

AUTOMOTIVE GARAGES SECTOR


The growth curve of automotive sector in the city has been on an upswing for past few years. Launch of contemporary models, easy availability of finance at relatively low rate of interest and price discounts has made vehicles accessible to a larger cross section of the population. Growth of vehicles on the city roads is generating several new employment opportunities for those engaged in vehicle maintenance business. But much of the action is being stolen by the manufacturers who are offering these services directly to their customers via their own network of service stations.
Withdrawal of maintenance dealerships by manufacturers, space constraints, pressure from the builder lobby, strict traffic and city laws, license bottlenecks, high taxation, etc. have been bothering the sector for a long time now. These factors have reduced the employment opportunities. Non-availability of spare parts and increase in warranty period is adding to the chaos and they are directly impacting the garage business as customers are visiting manufacturers’ service centre.
Conventionally, automobile garages recruited skilled personnel on the basis of their experience and the unskilled labour were made to learn on-the-job. The decades old recruitment practice has seen some makeover during the last few years. Though experience is still a prerequisite, established garages are now looking for individuals with degree or diploma in automobile engineering. The ever-changing technology in automobiles has made it mandatory that individuals maintaining them read technical manuals to do a good job. Earlier mechanics were dependent on spanners and other conventional tools, but now power tools are replacing conventional tools, it has drastically reduced the role of unskilled and ill-qualified personnel.
Qualified personnel seem to be joining manufacturers on high pay scale as supervisors, works managers, etc., while the small and medium sized garages are doing their best with skilled, semi-skilled and unskilled employee. The roadside garages are now looking for employees with at least HSC, as reading manuals has become a must.
The sector is witnessing a gradual shift from unskilled to skilled labour. There is an indication that only big garages and manufacturer’s service stations will survive in the future, as ‘automation’ would be the buzzword. Future garages are expected to be ‘one-stop-shop’. In the changing scenario, individuals with ITI qualification would be in great demand and they can seek positions like supervisor, works manager, sales manager, etc.

PHOTOCOPYING SECTOR


A low investment business, the competition in photocopying business has been on the rise due to mushrooming of innumerable businesses in the neighbourhood. In most cases businesses have been found to reach saturation leaving little scope for business expansion. On the fillip side, there exists great opportunities for business diversification into related services. It is the reason why most photocopying shops seem to have diversified their product offering by venturing into selling of: office stationery, computer related items, school books, fax rolls, ink cartridge, etc. On the other hand, several small and medium sized businesses in the city are offering photocopying as a side business, since these services have become a necessity.
In order to maintain economies of scale, most photocopying shops have recruited freshers and then trained them on the job; it is because skilled, experienced and technology-literate individuals demand higher salary. Even today, in a majority of the shops the staff is uneducated and unskilled, who over a period of time they have gained requisite skills and basic operating knowledge. Most of the businesses are family managed shops and the pressure for employing trained personnel is minimal. As for sourcing personnel the shop have had no problems in the past and nor do they foresee any difficulties in the future. This is largely because job skills requirements are basic, and shops don’t require skilled and educated individuals. However, with shops offering value-added services one doesn’t rule out the possibility of employing highly trained and skilled people in the future. Investment in IT has not had any major impact on the job profiles, as majority of those involved are unskilled and uneducated.

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