SMEs to boost e-commerce growth

CHENNAI: Internet and Online Association of India (IOAI) said today that it would focus on small and medium enterprise (SME) segment to speedup the growth of e-commerce activities in India.

Speaking to CyberMedia News, IOAI president Preeti Desai said, “With numerous small scale retail players, SME segment has much potential to help e-commerce grow. Focusing these segments would increase the online transaction level in India.”

She said that many of these retailers could become potent online traders. Besides increasing PC penetration, e-commerce activities would also help them commercially to reach wider geographical area.

Desai further observed that India is an evolving market as far as Internet penetration is concerned. Remote online shopping is expected to grow in a few years with the increased usage of credit cards for online shopping.

IOAI has plans to conduct series of training programs for the SMEs. This is to encourage them to take up more online transactions.

“To further the e-commerce revolution in India, IOAI has planned to increase the direct debit facility from the banks or would work with the Itz cash card or Postal department to enable cash on delivery of VPP,” she said.

However, Desai opined that the government should introduce e-literacy programs to give a boost to the Internet revolution. Such programs would increase the Internet penetration in the country.

Commenting on the future trends of e-commerce activities in India, Deasi said, “besides online banking transactions, sectors dealing with electronic gadgets, and computer and peripherals would drive the e-commerce market in the next one year.” Airline ticketing, movie ticketing, etc. would also give a fillip to e-commerce.

Additionally, the e-commerce market would also witness additional growth in the online classified market. Desai expects at least 20-25 percent of the Rs 1800 crore classified market to shift from the print media to online within one year.