E-tailers to help Punjab MSMEs boost growth

Vijay C Roy

Tribune News Service

Chandigarh, December 4

Ludhiana-based Brandonn, a babycare brand, recently witnessed revenue growth of 50% in a season sale by coming on board a leading e-commerce player. Similarly, Jalandhar-based VintoSports has been growing 80% (year- on-year) by selling its products online through an e-commerce player.

These are few companies which are reaping rich dividends by becoming part of various e-commerce platforms and adopting their product-centric programme. Many such MSMEs in the state are set to gain as e-commerce players such as Flipkart and Amazon will sign an MoU with the state to bring them on board during the Progressive Punjab Investors Summit 2019 (to be held in Mohali on December 5-6).

Besides facilitating the MSMEs in reducing transaction costs, approaching untapped markets and avoiding intermediaries, the e-commerce players would also bring efficiency through technology interventions, improving quality, at the same time taking care of cost factor.

Mohit Vashisht, owner and CEO of VintoSports, Jalandhar, was struggling to increase his sales a few years ago. However, his association with an e-commerce player enabled him to grow his business by understanding, anticipating and meeting the requirements of customers better.

“We have been working with the MSMEs to bring out efficiency through technology. The MSMEs always find it difficult to figure out the latest trends and demand. Here technology plays a vital role,” said Rajneesh Kumar, Chief Corporate Affairs Officer, Flipkart Group.

Citing example, he said, “Suppose, a bat manufacturer who is specially catering to kids can increase his sales by just pasting stickers of cartoons on the bat. Secondly, he can cut down costs by removing unnecessary designs and save on input costs. Here, technology plays a vital role and we assist them in reading the pulse of the market”.

“The MSMEs supported by innovation and technology can go a long way in promoting employment and economy,” said a senior official of another e-commerce player.

Pumpkart CEO KS Bhatia said, “Punjab has over 2 lakh MSMEs and our business model will give them a direct access to the domestic market without adding to their costs by training and providing requisite infrastructure.”

The Punjab Government will also facilitate interaction of MSMEs with e-retailers to help them list their products on their platforms. By signing the MoUs with Amazon and Flipkart, the state government will share information about the product clusters duly vetted by District Industries Centre.