EDITION VII

COLLABORATE TO INNOVATE

Team Infinity – IIM Raipur Akshay Chaturvedi

Bhavya Chhawchharia

Karan Singh Bhandari

“MSME EXPLORE ”

(Export Promotion and Leveraging

Global Opportunities)

• Lack of Network Neutrality

• Conventional Payment System

• In-Accessibility to Finance

• Lack of Training & Development

• High Logistics Cost

• Lack of Tracking options

• Weak local Supply Chain

• Longed Custom Clearance

• Hectic NOC Clearance

• Lower De-Minimis Limit

• Less Threshold MEIS Benefits

• High Transaction cost

• High cost of technology

• Lack of Awareness

• Excessive Paperwork

• Lack of Consumer protection

CURRENT SCENARIO BENCHMARKING GLOBAL PRACTICES

Consolidated

Export System

Integrated Supply

Chain Ecosystem

MSME friendly

Export policies

Secure Paperless

Trading

Seamless CBT

e-Commerce

Problem at Hand Global

Benchmarking

Infrastructure

Logistics

Policy

Technology

2

INNOVATIVE IDEA

3

POLICY-PLATFORM ECOSYSTEM

Pre-solution steps

• Synergies with numerous

schemes

• Formalization of enterprises

• Organized central database

• Recognizing E-commerce

as an industry

• Network neutrality

Post-solution steps

• Linking Transaction IDs

• EDI at Customs

• Interoperable Tracking

System

• Integrated supply chain

ecosystem

• Policy amendments

MSME Explore Components

• Co-working Spaces

• Comprehensive Service Provider

• Digital Single Window System

Functions

• Collaborative effort between all

ecosystem players

• Moving sector specific MSMEs into

CBT space

Third Party Education Platform Functions

• Spreading Awareness about CBT

• Cluster Education Programmes

• Changing myopic view of technology

• Targeted Capacity Building Programmes

• Connect with multiple international portals

• Training of MSMEs

• Technical Support

• Data sharing

• Collaborations with local associations

Solu

tion

Seamless Integration between all stakeholders and MSMEs

Solution

• MSME Explore

• Third Party education platform

IDEA FLOWMAP INTEGRATED E-COMMERCE

• On-boarding on platform

• Preparation of catalogue

• 24*7 IT support

• Custom and regulatory

clearances

• Financing and taxation

Orders and

transactions from

different sites gets

reflected on the

DSW platform and

payment goes into

a single account

Customer places order any

of the partner websites

DSW Platform tracks

inventory in

warehouse and

generates dispatch

orders

Integrated logistics

through international

3PL partners

4

RECOMMENDED EFFORTS INFRASTRUCTURE, LOGISTICS, POLICY,

TECHNOLOGY

• Public-Private Partnerships for shipping

• Integrated Supply Chain Ecosystem

• Implementing Interoperable Tracking System

• Digital Single Window System for facilitating multiple activities

• Realising information sharing through Data Protection

• Subsidise costs for hardware

• Mandatory electronic signature and authentication through paperless trading

• Recognizing retail e-commerce exports as a industry

• Increasing the MEIS limit

• Allowing FDI in Inventory Based model

• Considering e-BRC equivalent to Transaction ID for foreign exchange

• Linking CSB-V and Transaction ID

• Integrated end-to-end solution for e-payment

• Implementing EDI

• Providing common language

Infrastructure

Policy

Logistics

Efforts

Technology

5

BENEFITS

Cross-Function

Provide Micro-financing

and functional literacy to

MSMEs

Targeted Marketing

51% increase in

Revenue and up-to

80% reduction in

expenses

Digitization

Overcome physical

ques and provide

Interoperable tracking

system

Customer acquisition

Insight based

personalization to

improve customer

experience

Co-working space

Access to digital

assets and

mentorship

Education

Continuous and

Monthly sessions on

CBT e-commerce

Enhanced Quality

Standard

Standardized products

to create brand value

Expand to new

markets

Access to large pool of

global consumers

6

PLAN IMPLEMENTATION FEASIBLE, SUSTAINABLE AND SCALABLE

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total

Phase 2 (2022)

Phase 1 (2020)

30 Lakhs

1.5 Lakhs

10K 2.5 Lakhs

1 Lakh

70 Lakhs

10 Lakhs

1 Lakh

10 Lakhs

B2C MSME Size and Phase Wise Onboarding Target

2.74 Lakhs

4.93 Lakhs

=

=

Target early majority

• First 16% : INR 100000 direct benefit

• Next 34%: INR 50000 direct benefit

B2C Transformation Incentive

Co-working Spaces to be Opened at

Various MSME Cluster Locations

(Phase I)

Total Clusters : 7157

Micro-Clusters : 6000

Industrial clusters :

1157

Phase I – 2465

Phase II – 4692

North

Haryana - 272

UP - 144

Other - 55

West

Maharashtra - 176

Gujarat - 88

Rajasthan - 136

Other - 41

North-East

Assam - 128

Arunachal Pradesh - 72

Other - 28

East

West Bengal - 168

Orissa - 67

Other – 49

South

Tamil Nadu - 504

Karnataka- 128

Kerala - 176

Other - 33

Central

MP - 120

Chhattisgarh - 45

Other - 35 No. of Co-working

Spaces to be opened

phase wise

7

RESEARCH - SCENARIO INCREASING GROSS MERCHANDISE VALUE IN B2C

8

Transition from Traditional MSMEs Domestic E-commerce CBT E-commerce

$ 500 mn

Existing CBT revenue in B2C

exports category = US $ 500 mn

Increased CBT Revenue Target

Phase I (2020) = US $ 2 bn

Phase 2 (2022) = US $ 5 bn

Increased competitiveness due to Cost saving

• Marketing Costs: 40%

• Operational efficiency: 15%

• Provision for returned goods : 8%

$ 869.4 mn

$ 1738.8 mn

Multi-channel Sales due to

DSW platform

100% increase in sales due

to multi-platform visibility

(ebay, Alibaba & Amazon)

$ 3.5 bn

Policy Interventions

• MEIS categories expansion: 16%

• De minimis limits: 27%

• FDI regulations: 37%

Entry into new categories and

markets

• Contemporary products

• Expansion trough Blue-

Ocean Strategy

• Perception improvements

$ 5.17 bn

45 % – 50 %

9

“TWIN-PRONGED” MARKETING INITIATIVES

Integrated Marketing Communication Country specific targeting

Potential new targets by developing

contemporary products

Clothing and Footwear

Consumer Electronics

Health and Beauty

Jewellery

Sports goods

Grocery

Home accessories

Russia

Mexico

Brazil

Thailand

Turkey

South Africa

China

Joint programmes by

private and

government sector

Multi-dimensional

gateway for facilitating

MSMEs of all BRICS

countries Memberships with

International

Associations

Setting up exclusive

stores for products of

India MSMEs in local and

global airports

Pooled Marketing and

selling of sector specific

MSMEs

Agreement with

Diplomats for mutually

promoting MSMEs

EDUCATING THE MSMEs

Alibaba, E-bay and Amazon ---- > knowledge partners

International and Minimum threshold quality standards

Handling e-Commerce tools and technology

Export Policies, Procedure, Incentives and Benefits

Safe and Secure Online Payments

Risk and Fraud management with PayPal

Experience on Multi-channel selling - Online & Mobile

E-Commerce Marketing and Social Media Marketing

Geography

Geographical Cluster level

Pan India

Education Mode

Offline & Online

Online

Frequency

Periodic (Once in a month)

Continuous (24*7)

Attend

Present

Networking

Co-teach

Take-Over

Third Party Education Platform Train the Trainer

Transforming

Periodic Third

Party Education to

Continuous self

education

10

BUDGETS

11

Total Expenses

Total Cost = ₹ 9668.35 Cr.

IT and Infrastructure Development Cost Marketing Expenditure

Subsidy Cost

Particulars Amount (in Cr.)

Co-working space set-up cost 5,725.60

Comprehensive service provider set-up

cost

(PPP model 40% of the initial cost to be

born by govt.) 1,080.00

Digital Singal Window Platform Dev.

Cost 205.30

Education platform Dev. Cost 108.90

EDI at custom 389.50

Total 7,509.30

Particulars Amount (in Cr.)

Newspaper Ads 75.00

Campaigns 60.00

Radio Ads 10.00

Trade shows and events 160.00

Digital Marketing 100.00

Total 405.00

Particulars Amount (in Cr.)

IT infra subsidy scheme (Capital

Investment) Phase I 438.40

IT infra subsidy scheme (Capital

Investment) Phase II 465.80

Interest subsidy on working capital

loan (3% interest upto 30 lakhs for 5

years) 849.85

Total 1,754.05

Particulars Amount (in Cr.)

IT and Infrastructure Development

Cost 7,509.30

Subsidy Cost 1,754.05

Marketing Budget 405.00

Total 9,668.35

12

Thank you! It always seems impossible until

it is done – Nelson Mandela

Q & A