Pockets of Potential – Building online presence for MSME
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Transcript of Pockets of Potential – Building online presence for MSME
Pockets of PotentialPotential to building an online presence among Small and
Medium Businesses in IndiaReport By
December 12 ,2014
2
SETTING THE CONTEXT
Which segments were covered?
How did we arrive at the findings ?
What was the coverage?
Whom did we speak to?
1000 business were covered
across the Urban India- (Across Tiers
I-V)
Both through
Focus Groups &
through Structured face to face interviews
Micro (1-10 Emp)
Small(11-100 Emp)
Medium (101-500
Emp)
64%were business
owners
51% have B2C clients
87%
have their clients based
in India
64% Indicate that technology is extremely critical for their business
On a average business were
more than 8 years old3
Total number of targetable organizations
Number of MSMEs in urban India
PC owning MSME
Website ownership
98%
54%
10 Million
10.2 Million
5.29 Million
26% 1.35 Million14% of the total MSMEs in urban India have a website
THE RELEVANT MSME UNIVERSE
Urban India has about 10 million targetable* MSMEs; 14% of these businesses have a website currently
* Defined as businesses that have at least one telephone lineSource: ITOPS 20144
5
SO, WHO ARE THE BUSINESSES THAT
HAVE ADOPTED WEBSITE?
MSME’s engaged in BFSI, Education, TTL and Technology show highest adoption of website
Penetration of website by vertical
6Source: ITOPS 2014
Health care
Real Estate
Retail
Manufacturing
Technology
TTL
Education
BFSI
10%
10%
10%
14%
17%
17%
24%
35%
However, Education, BFSI & Technology show high intention as well. Retail & Manufacturing are rising stars
Bubble Size represents the segment size in the universe
7
Education BFSI
Real Estate
Technology
TTL
Manufacturing
Healthcare
Retail
Potential verticals
Key segments Emerging segments
0% 5% 10% 15% 20% 25% 30% 35% 40%0%
10%
20%
30%
40%
50%
60%
Current Adoption →
Inte
ntion
→
8
BFSI
Provide value added service and expand business
Education
Brand building
Technology
Portrays a professional image and brand building
Universe size: 640,000Penetration: 17%Purchase intent: 40%
WEBSITE
Universe size: 400,000Penetration: 35%Purchase intent: 40%
Universe size: 370,000Penetration: 24%Purchase intent: 38%
WHERE ARE THE NEXT LEVEL OPPORTUNITY EMERGING FROM?Ke
y Be
nefit
for
the
segm
ent
Universe size: 2,500,000Penetration: 10%Purchase intent: 35%Retail
Emerging Segments
Universe size: 1,700,000Penetration: 14%Purchase intent: 48%Manufacturing
9
HOW DOES WEBSITE FARE VIS-À-VIS OTHER
ONLINE MEDIA?
Website has the highest relevance amongst online media. Other online media grouped together
1
Website
40%
2
Social Media
33%
3
Directory Listing
31%
4
Corporate Mail Id
31%
Relevance Online Media
10
Relevance of commonly used tools for marketing
11
No online Presence
(48%)
Adoption of online media
WEBSITE33%
CORPORATE EMAIL ID
28%
SOCIAL MEDIA28%9%
7%3%
3% 1%
14%
15%Online
Presence (52%)
Retail TTL Healthcare Technology Manufacturing Education Real Estate
56% 21% 8% 7% 4% 2% 1%
Has online presence but not website
There are about 2/3rd of businesses that have online presence but do not have a website…. Offers significant opportunity…
Total Retail IT/ITES BFSI Education Mfg.
19%
12%
33% 34%29%
21%
12
This opportunity is largely driven across the key verticals. Retail emerges as a potential vertical
Corporate Email ID Directory Listing
Total Retail IT/ITES BFSI Education Mfg.
31%28%
35%
28% 30%
36%
Total Retail IT/ITES BFSI Education Mfg
33%
21%
55% 54% 52%
33%
Social Media
13
WAY FORWARD – HOW DO WE
DRIVE ADOPTION?
14
Having a website is a way of building professional image & branding for SME’s in Education sector; but largely see it as belonging to larger organizations
Education
• Portrays a professional image
• Brand building
• Increases reach and access to new markets
• Acts like a catalogue
• Necessary for all businesses
• It is for large organizations
• Use other means to reach out to customers
• Customer’s are not tech savvy
• Customers don’t expect
• No need for website
Trig
gers
Barriers
…. I am sitting in India and my website is seen all over the world and how many people are watching my site I can know that..
15
SME’s engaged in BFSI segment sees website as a branding mechanism; but don’t feel the need to adopt as they reach out to their customers in other ways
BFSI
• Brand building
• Portrays a professional image
• Increase sales
• Increases reach and access new markets
• Expansion of business
• Reach out to customer’s in other ways
• Customer’s don’t expect
• Customer’s are not tech savvy
• No need for website
• It is for large organizations
Trig
gers
Barriers
….I can give you an example, banks have some websites, you don’t have to visit the branch and you can do everything over the internet..
16
SME’s in the Technology segment see website as a means to increase reach and get access to new markets; but mostly reach out to their customers reaching other means
Technology
• Portrays a professional image
• Increase sales
• Increase reach and access to new markets
• Acts like a product catalogue
• Expansion of my business
• Customer’s don’t want
• Limited knowledge on creating website
• Reach customers in other ways
• Can invest in more effective ways
• Have other priorities
Trig
gers
Barriers
….Website are not only for corporate profile and all, actually exchange of goods and services are taking place…..
17
Increase in sales and expansion of business are key considerations for SME’s in retail segment; however they don’t see necessity to have a website in their business
Retail
• Increase sales
• Portray a professional image
• Brand building
• Expansion of business
• Other organizations in same
• Reach out to customer’s in other ways
• No need for website in business
• Customer’s don’t expect
• It is for larger organizations
• Have other priorities
Trig
gers
Barriers
…. I’ve recovered my next 5 years expenses also with regard to the website cost and this business was done online.….
18
Increase in sales and expansion of business are key considerations for SME’s in retail segment; however they don’t see necessity to have a website in their business
Manufacturing
• Portray a professional image
• Increase reach and access to new markets
• Increase sales
• Necessary for all business
• Brand building
• Customer’s don’t expect
• Others in the industry don’t have a website
• Customer’s are not tech savvy
• No need for website in my business
• Maintenance is costly
Trig
gers
Barriers
…. Suppose if you are in pan India business, it is a big country and on an online website a person can solicit an enquiry about my product and can communicate to me…..
…
19
WHAT IS THE PREFERRED DOMAIN?
10% 48% 33% 4% 2%
Extremely Important
Bottom 2 boxesMiddle Box
20
Domain name extension are found to be important and ‘.Com’ score in terms of awareness, preferences and adoption
Only 9% MSMEs own more than one domain
TOP 2 Boxes
Not Important at all
Importance of domain name extensions?
81%
12%4%1% 1%1%
.org
.edu
None
.co.in
.in
.com
82%
11%4%
1% 1%
.net
.edu
.co.in
.in
.com .ac
.gov
.edu
.org
.net
.co.in
.in
.com
1%
1%
1%
2%
3%
9%
17%
74%
Awar
enes
s
Pref
eren
ce
Adop
tion
Q&A
21
THANK YOU
22