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

1. Pockets of Potential
Potential to building an online presence among Small and Medium
Businesses in India
Report By
December 12 ,2014

2. SETTING THE CONTEXT
2

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. 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. SO, WHO ARE THE BUSINESSES
THAT HAVE ADOPTED
WEBSITE?
5

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. 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
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. HOW DOES WEBSITE FARE VIS-
À-VIS OTHER ONLINE MEDIA?
9

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
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. 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. WAY FORWARD – HOW DO
WE DRIVE ADOPTION?
13

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
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
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
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
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. WHAT IS THE PREFERRED
DOMAIN?
19

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. Q&A
21

22. THANK YOU
22