'E-commerce Marketplaces like Amazon can Enable Global Competitive Edge to Local Products'

MSMEs are the growth accelerators of the Indian economy, contributing about 30% of the country’s gross domestic product (GDP). The sector not only employs about 3.35 crore people but also forms an integral part of India's supply chain and overall exports of the country. With the onset of the pandemic, the sector has prompted a strong shift towards online platforms and e-commerce sites for the purpose of conducting business. While India’s e-commerce industry is set to grow 84 percent to $111 billion by 2024, this transition towards online marketplaces creates an opportunity for the MSME sector to leverage e-commerce supply chains and lead the globalization of ‘Made in India' products.

Prime Minister Narendra Modi's vision of 'Atmanirbhar Bharat' not only aspires to make India’s manufacturing and SME sector self-reliant, it also signals the attention needed to address the brand building potential of the SME community and achieve the bold ambition of becoming a global brand. As opposed to traditional beliefs, the digital wave is enabling local players to build brands out of their products and services on limited resources. In a session organized by India SME Forum (ISF) to discuss the importance of brand building for local and small sellers, Mr. Lloyd Mathias, Business Strategist and an Angel Investor, highlighted how digital solutions like e-commerce and online sites offer services targeted to specific audiences, giving local players an opportunity to develop brands by providing high visibility and new customers. He also highlighted how e-commerce exports allow local sellers to attain access to foreign customers more effectively through pre-established infrastructure and a robust supply chain.

During the discussion, he further mentioned how the future of doing business will be defined by technology as it is a crucial factor in laying down the success and competitiveness parameters for MSMEs, both domestically and globally. By adopting e-commerce as a brand building exercise, MSME stands to gain significant advantages such as increased revenues, improved market reach through global supply chains, access to new markets, savings in marketing spending, customer acquisition, and enhanced customer experience. He stated that “E-commerce plays a huge role in helping MSMEs cross over traditional borders and expand their customer base to international markets, while also supporting local businesses with world class logistics and warehousing services.” He further stressed that “MSMEs must strive to make best in class products and give utmost importance to quality control to become receptive to competition from global markets.”

He concluded by saying that SMEs need to build and manage their brands through progressive technology like e-commerce which inturn gives additional benefits. Investment in brand building will automatically demonstrate a positive rise in business as it is the sole differentiator in a world saturated with assembly lines of goods and services.