Digital Transformation: The Way Forward For The MSME (5/5/2022)
Digital Transformation: The Way Forward For The MSME
70% of the 476 firms surveyed that adopted the digital transformation during the covid situation reported an increase in their sales volume. About 65% of firms experienced an increase in turnover and 54% reported an increase in their profits.
In the FY 2020-21 online sales contributed 27% of the total sales in the country. The seller registration with the E-commerce giants increased by 80-90% in the second half of 2020. Out of these, only a few had their own e-store while others depended on third-party platforms.
MSME’s challenges in the digital transformation – no GST exemption threshold advantage, no deep-pocket support to burn cash for targeting and retaining customers, E-commerce policies being pro-consumer, and large unorganized nature of the retail and the manufacturing sector.