Potentials of eRetail Driving the Growth of MSMEs in India

Abstract

eCommerce empowers MSME firms to navigate online mode in doing business which creates higher demand for their products, getting wider reach and expanding their customer base. eCommerce and eRetail mode have become a popular way of doing business after accelerated digitalisation mainly due to COVID-19 pandemic. MSMEs adopt eRetail as the new way forward to grow from the stage of micro to medium enterprises through conducting both offline and online mode of business. Rapid internet and smartphone penetration, and access to funding and digital payments fuel the growth of e-retail market in India, thereby having great potential for the growth of MSMEs. The present article has taken a modest attempt in discussing the issues of the logical background of eRetail as a successful mode of business for MSMEs; reasons for adopting digital technologies including eCommerce in the evolving business environment brought by digitalisation for the purposes of cost reduction and marketing, vulnerability of MSMEs to shocks and risks, rationale for shifting to eRetail by businesses for customers wins, maintain and grow market share and establish the potentials of eRetail driving the growth of MSMEs in India.