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Pockets of Potential – Building online presence for MSME

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Pockets of Potential – Building online presence for MSME

MSMEs are the drivers for the growth of Indian economy. Therefore, it is important to assess their readiness towards adopting online solutions.

The findings of a research conducted by IMRB International (Indian Market Research Bureau) indicate that ‘website’ continues to be the most dominant route for businesses to adopt online presence. However, social media is increasingly found to show adequate interest amongst micro and small businesses. Some industry verticals in India seem to show a greater inclination towards online adoption than others. The research attempts to uncover such potential areas, which online services providers can explore in order to capture growth.

Biswapriya Bhattacharjee
Group Business Director
IMRB International

Published in: Technology
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Pockets of Potential – Building online presence for MSME

  1. 1. Pockets of Potential Potential to building an online presence among Small and Medium Businesses in India Report By December 12 ,2014
  2. 2. SETTING THE CONTEXT 2
  3. 3. Which segments were covered? How did we arrive at the findings ? What was the coverage? Whom did we speak to? 1000 business were covered across the Urban India- (Across Tiers I-V) Both through Focus Groups & through Structured face to face interviews Micro (1-10 Emp) Small (11-100 Emp) Medium (101-500 Emp) 64% were business owners 51% have B2C clients 87% have their clients based in India 64% Indicate that technology is extremely critical for their business On a average business were more than 8 years old 3
  4. 4. Total number of targetable organizations Number of MSMEs in urban India PC owning MSME Website ownership 98% 54% 10 Million 10.2 Million 5.29 Million 26% 1.35 Million 14% of the total MSMEs in urban India have a website THE RELEVANT MSME UNIVERSE Urban India has about 10 million targetable* MSMEs; 14% of these businesses have a website currently * Defined as businesses that have at least one telephone lineSource: ITOPS 2014 4
  5. 5. SO, WHO ARE THE BUSINESSES THAT HAVE ADOPTED WEBSITE? 5
  6. 6. MSME’s engaged in BFSI, Education, TTL and Technology show highest adoption of website Penetration of website by vertical 6Source: ITOPS 2014 10% 10% 10% 14% 17% 17% 24% 35% Health care Real Estate Retail Manufacturing Technology TTL Education BFSI
  7. 7. However, Education, BFSI & Technology show high intention as well. Retail & Manufacturing are rising stars Bubble Size represents the segment size in the universe 7 Education BFSI Real Estate Technology TTL Manufacturing Healthcare Retail Potential verticals Key segments Emerging segments 0% 10% 20% 30% 40% 50% 60% 0% 5% 10% 15% 20% 25% 30% 35% 40% Intention→ Current Adoption →
  8. 8. 8 BFSI Provide value added service and expand business Education Brand building Technology Portrays a professional image and brand building Universe size: 640,000 Penetration: 17% Purchase intent: 40% WEBSITE Universe size: 400,000 Penetration: 35% Purchase intent: 40% Universe size: 370,000 Penetration: 24% Purchase intent: 38% WHERE ARE THE NEXT LEVEL OPPORTUNITY EMERGING FROM?KeyBenefitfor thesegment Universe size: 2,500,000 Penetration: 10% Purchase intent: 35%Retail Emerging Segments Universe size: 1,700,000 Penetration: 14% Purchase intent: 48%Manufacturing
  9. 9. HOW DOES WEBSITE FARE VIS- À-VIS OTHER ONLINE MEDIA? 9
  10. 10. Website has the highest relevance amongst online media. Other online media grouped together 1 Website 40% 2 Social Media 33% 3 Directory Listing 31% 4 Corporate Mail Id 31% Relevance Online Media 10 Relevance of commonly used tools for marketing
  11. 11. 11 No online Presence (48%) Adoption of online media WEBSITE 33% CORPORATE EMAIL ID 28% SOCIAL MEDIA 28%9% 7% 3% 3% 1% 14% 15% Online Presence (52%) Retail TTL Healthcare Technology Manufacturing Education Real Estate 56% 21% 8% 7% 4% 2% 1% Has online presence but not website There are about 2/3rd of businesses that have online presence but do not have a website…. Offers significant opportunity…
  12. 12. 19% 12% 33% 34% 29% 21% Total Retail IT/ITES BFSI Education Mfg. 12 This opportunity is largely driven across the key verticals. Retail emerges as a potential vertical Corporate Email ID Directory Listing 31% 28% 35% 28% 30% 36% Total Retail IT/ITES BFSI Education Mfg. 33% 21% 55% 54% 52% 33% Total Retail IT/ITES BFSI Education Mfg Social Media
  13. 13. WAY FORWARD – HOW DO WE DRIVE ADOPTION? 13
  14. 14. 14 Having a website is a way of building professional image & branding for SME’s in Education sector; but largely see it as belonging to larger organizations Education • Portrays a professional image • Brand building • Increases reach and access to new markets • Acts like a catalogue • Necessary for all businesses • It is for large organizations • Use other means to reach out to customers • Customer’s are not tech savvy • Customers don’t expect • No need for website Triggers Barriers …. I am sitting in India and my website is seen all over the world and how many people are watching my site I can know that..
  15. 15. 15 SME’s engaged in BFSI segment sees website as a branding mechanism; but don’t feel the need to adopt as they reach out to their customers in other ways BFSI • Brand building • Portrays a professional image • Increase sales • Increases reach and access new markets • Expansion of business • Reach out to customer’s in other ways • Customer’s don’t expect • Customer’s are not tech savvy • No need for website • It is for large organizations Triggers Barriers ….I can give you an example, banks have some websites, you don’t have to visit the branch and you can do everything over the internet..
  16. 16. 16 SME’s in the Technology segment see website as a means to increase reach and get access to new markets; but mostly reach out to their customers reaching other means Technology • Portrays a professional image • Increase sales • Increase reach and access to new markets • Acts like a product catalogue • Expansion of my business • Customer’s don’t want • Limited knowledge on creating website • Reach customers in other ways • Can invest in more effective ways • Have other priorities Triggers Barriers ….Website are not only for corporate profile and all, actually exchange of goods and services are taking place…..
  17. 17. 17 Increase in sales and expansion of business are key considerations for SME’s in retail segment; however they don’t see necessity to have a website in their business Retail • Increase sales • Portray a professional image • Brand building • Expansion of business • Other organizations in same • Reach out to customer’s in other ways • No need for website in business • Customer’s don’t expect • It is for larger organizations • Have other priorities Triggers Barriers …. I’ve recovered my next 5 years expenses also with regard to the website cost and this business was done online.….
  18. 18. 18 Increase in sales and expansion of business are key considerations for SME’s in retail segment; however they don’t see necessity to have a website in their business Manufacturing • Portray a professional image • Increase reach and access to new markets • Increase sales • Necessary for all business • Brand building • Customer’s don’t expect • Others in the industry don’t have a website • Customer’s are not tech savvy • No need for website in my business • Maintenance is costly Triggers Barriers …. Suppose if you are in pan India business, it is a big country and on an online website a person can solicit an enquiry about my product and can communicate to me….. …
  19. 19. WHAT IS THE PREFERRED DOMAIN? 19
  20. 20. 10% 48% 33% 4%2% Extremely Important Bottom 2 boxesMiddle Box 20 Domain name extension are found to be important and ‘.Com’ score in terms of awareness, preferences and adoption Only 9% MSMEs own more than one domain TOP 2 Boxes Not Important at all Importance of domain name extensions? 81% 12% 4% 1% 1%1% .org .edu None .co.in .in .com 82% 11% 4% 1% 1% .net .edu .co.in .in .com 1% 1% 1% 2% 3% 9% 17% 74% .ac .gov .edu .org .net .co.in .in .com Awareness Preference Adoption
  21. 21. Q&A 21
  22. 22. THANK YOU 22

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