Tag: MSMEs

100k festive bonanza for MSMEs made possible by government’s push for digitization: ISF Report

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Telugu super news,january 2nd,2024:The online retail sector is poised to reach $350 billion in the next five years, fueled by increased smartphone penetration, digital adoption, and government initiatives such as Digital India and One District-One Product. The Forum for Internet Retailers, Sellers, and Traders (FIRST) India, a division of India SME Forum (ISF), shared year-end findings from a recent research report on the impact of e-commerce during the festive season in 2023.

The study, based on a nationwide survey of over 32,000 respondents, revealed a significant surge in online retail, with established platforms such as Amazon and Flipkart emerging as preferred choices among MSMEs for sales. Nearly 80% of sellers generated their revenues from online and e-commerce sales, with 60% doubling their sales and 90% registering a minimum 30% YoY increase in online sales. This shift in strategy not only benefited individual businesses but also had a cascading effect on the entire ecosystem, leading to increased inventories, new product launches, and heightened advertising spends.

The festive season preparation showcased MSMEs’ bullish approach, with over half stocking up on inventory, a third launching new products, and a quarter increasing their advertising spends. Sellers also showed a growing preference for e-commerce due to the benefits offered, citing higher sales volume (86%), wider customer reach (82%), and elevated brand recognition (44%) as the top three reasons. Trust remained a cornerstone in the e-commerce ecosystem, with wide customer reach (100%), company reputation (99%), and a robust seller ecosystem (95%) cited as the top three reasons driving seller trust in e-commerce websites. MSMEs adopting an omni-channel strategy, seamlessly integrating online and offline channels, emerged as the success story of the festive season.

Mr. Vinod Kumar, President, India SME Forum, and Trustee and President, FIRST India, said, “In this era of exponential rise, the synergy between innovation and regulation becomes paramount in shaping the future of India’s economic landscape. We envision a scenario where MSMEs not only survive but thrive, leveraging the transformative power of e-commerce. A majority of MSMEs, registering a remarkable 30% increase in their online sales year-on-year, signal a paradigm shift in the way business is conducted. From an estimated ₹90,000 crores this year, we anticipate festive sales to surge beyond 100K crores in 2024, as we continue guiding these enterprises towards a trajectory of prosperity by seamlessly integrating offline and online retail.”

Geographically, Tier 2 and Tier 3 cities took center stage, outpacing metros in order traffic and signaling a significant shift in consumer behavior. The findings highlight the widening geographical reach of e-commerce in India and the growing trust of consumers in Tier 2, Tier 3, Tier 4, and rural areas.

Diversification of sales channels emerged as a trend, with 90% of retailers relying on e-commerce marketplaces. Amazon emerged as the undisputed champion among e-commerce platforms, commanding a 38% preference, followed by Flipkart (20%), Myntra (15%), and Meesho (12%). Notably, 50% utilized social media platforms like Instagram, and 41% leveraged third-party apps like WhatsApp for sales.

As MSMEs continue to ride the e-commerce wave, the research also emphasized the challenges in the e-commerce space, the need for policy reforms for a conducive ecosystem, and collaboration between policymakers and industry stakeholders. 60% of the sellers expressed concerns over regulatory biases favoring offline channels, threats to established players, and burdensome compliance measures. Additionally, worries included capital requirements for online listing (41%) and consumer return habits (36%), with 33% advocating for policy changes in GST and Returns guidelines.

With retail development extending to tier II and III cities, India’s long-term consumption and retail growth provide a strong foundation for future growth. These insights are vital for policymakers and industry stakeholders navigating the evolving economic landscape. Addressing challenges faced by sellers not only refines the e-commerce experience but also contributes to sustained growth, cementing the sector’s pivotal role in shaping India’s projected $2 trillion economic future by 2032. 

FIRST India workshop to fuel transformation of 24 Lakh MSMEs in Hyderabad

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Telugu super news,Hyderabad,june 20,2023:Hyderabad, a home to approximately 26 lakhs MSMEs, of which 56% are in rural areas, is witnessing a remarkable digital transformation. In line with this, the Forum for Internet Retailers, Sellers & Traders, India (FIRST India) hosted “Future Proofing of Indian Enterprises”, a digitisation workshop in the city, aimed at creating awareness and supporting small businesses on the opportunities that will help them go digital and become self-reliant.

Hyderabad is at the forefront of the digitization wave, embracing cutting-edge technology and fostering a culture of innovation to drive profound transformations across various sectors. With initiatives like Digital Telangana and T-Hub, the city is emerging as a hub for MSMEs and technology-driven advancements. By leveraging the power of digitization, MSMEs in Hyderabad can greatly benefit from utilizing e-commerce platforms for their business operations. These online marketplaces provide MSMEs with a vast potential customer base, expanding their reach beyond the local market to a global audience, and opening new avenues for growth and revenue generation. E-commerce platforms offer cost-effective solutions for establishing and maintaining an online presence, eliminating the need for significant investments in physical stores or infrastructure. Moreover, these platforms provide tools and analytics that help MSMEs understand customer behavior, preferences, and trends, enabling them to tailor their offerings accordingly. Additionally, online marketplaces enable MSMEs to stay competitive in the digital age, fostering business sustainability and growth.

Mr. Vinod Kumar, President, India SME Forum, and Trustee & President, FIRST India said, “There is no doubt that the e-commerce boom in Hyderabad is accelerating technological innovations and acting as a catalyst for MSME  growth and expansion. Our mission is to fuel this level of digitization among MSMEs to increase the contribution of the sector to the country’s economy, surpassing its current share. This would create more employment opportunities for India’s expanding workforce and stimulate a stronger business ecosystem.”

Ch. Krishna Gupta, Chairman, Federation of all India Vyapar Mandal said “We cannot stop online trade. Not one but thousands of companies use online trade in India. There are so many ways through which we can open avenues to sell what we sell online to B2C people. There is a need to negotiate the price with suppliers and bargain on the price, along with counter sales to generate revenue and scale business.”

An online seller from Hyderabad, Bhaskar Badugu of Chandana Cotton Creations, said, “E-commerce is a transformative bridge between manufacturers and customers. Marketplaces like Amazon are liberating us from traditional models to connect directly with customers, offer personalized experiences that transcend borders at reduced maintenance and inventory costs. As Amazon sellers, we are rewriting the traditional rules of doing business to enable growth and reach new heights, one customer at a time.”

These FIRST India workshops have also been conducted across various MSMEs clusters in India such as Delhi, Ahmedabad, Chennai and Kolkata, witnessing participation from eminent personalities and sellers from the industry.

Amazon Business continues to empower MSMEs in the city of Hyderabad

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Telugu super news,Hyderabad, April , 2023: With approximately 6.5 lakh sellers on the platform and more than 16Cr GST enabled products, Amazon Business continues to act as one stop destination for business customers in Hyderabad. Started in 2017, Amazon Business has seen an upward trajectory in tier II cities including Hyderabad with a 12% YoY increase in customer registration. With the vision to empower MSMEs, Amazon Business continues to simplify the procurement process and help MSMEs buy from the seller that best fits their procurement budget.

Top trends in Hyderabad:
●12% YoY increase in the number of customers registered
●72% increase in the number of accounts who bought on AB from Hyderabad
●27% increase in spending by  accounts
●38% increase in the orders received from Hyderabad
●All this came on the back of over 16Cr. GST selection made available during this year

Amazon Business currently houses India’s largest GST-enabled selection and plans to sustain the momentum by catering to their existing and potential users through its customer backward approach and easing the way of doing businesses further. In line with these efforts, Amazon Business saw a 72% increase in the number of customer accounts, 27% increase in spending by accounts and 38% increase in the orders received, ensuring increased customers’ trust in the services.

 Since its launch, Amazon Business has focussed to drive digitization for its customers and simplify the procurement process for them. Keeping up with the evolving needs of the customers, it continued to innovate and add features including ‘Bill to Ship to’ allowing customers to claim GST credit on their billing address for their pan-India shipments. In early 2022, it also launched the Android and iOS optimized mobile app specifically designed to improve the procurement experience of business customers on the go. For the seller partners, Amazon Business also provides an additional opportunity on Amazon.in to scale their B2B business by catering to requirements of lakhs of business customers and grow their revenues. Features such as ‘Request for Quantity Discount’  and discounts on bulk purchase help sellers cater to lakhs of orders from businesses across the country.

“MSMEs have started embracing digital solutions to cater to the evolving needs of consumers. Be it selling products or procuring business supplies, digitization is the way forward. We are humbled by the positive response we have received from our business customers throughout the year. Our growth is a testimony to the fact that our efforts to positively contribute to the MSME sector are in the right direction. This year, we will continue to help our customers and seller partners leverage Amazon Business to save more on their business purchases and increase their profitability.” said Suchit Subhas, Director, Amazon Business.

In 2023, Amazon Business continues to remain laser focused on its vision to empower the MSMEs even further and make their indirect spends more effective by bringing down overall costs and improve the ease of doing business. With features such as Multi-user accounts and Approvals, spend analytics, credit extension, access to expenditure breakup, and many more, Amazon Business strives to innovate to its maximum potential with a customer-backward approach.