Published
Jan 20, 2022
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MSMEs adapt to pandemic with increased focus on e-commerce, social commerce, and cross-border trade

Published
Jan 20, 2022

India’s micro, small, and medium enterprises have had to adapt to a swiftly evolving retail landscape during the pandemic and have focused in on e-commerce, social commerce, and cross-border trade to stay afloat.

Some Indian MSMEs are benefitting from the changes brought about by the pandemic


The Indian MSMEs which have adapted their business practices to new customer demands and retail environment have been able to turn the challenges of the current situation to their advantage, according to a study by PayPal India in partnership with Edelman Data and Intelligence. Nine out of 10 MSMEs in the ‘MSME Digital Readiness Survey 2021’ responded that cross-border trade is a main area for business growth showing how Covid-19 has increased the amount of small businesses looking to engage in international retail trade, ET Bureau reported. 
 
“Initially it was quite tough, but they've been adjusting and they have taken actually kind of a leap here,” PayPal India’s senior director of corporate affairs Nath Parameshwaran told the Economic Times. “Our insights clearly showed that majority of the MSMEs have benefited post pandemic, especially the guys who have actually taken the lead to go digital. Further, one in three businesses have benefited from various payment offering and cross border selling.”

Social media has also risen in importance, a trend which precedes the pandemic. Two out of three survey respondents said that they currently use social media as a sales channel. The increased communication social media facilitates when used as a sales channel compared to a website alone helps to build consumer trust, especially when logistics may have to navigate challenging lockdown restrictions. 
 
According to the survey, 52% of MSMEs have seen their business impacted positively by the re-opening of the economy after the strict pan-India lockdowns. Some businesses were even able to benefit from the changes to the retail market as 29% of surveyed MSMEs said that the business environment has become more favourable to them compared to before the pandemic.

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