COLLABORATE TO INNOVATE Promoting Cross Border E … · Handicrafts Books Handlooms Toys Leather...

of 12 /12
EDITION VII COLLABORATE TO INNOVATE Promoting Cross Border E-Commerce for Indian MSME Sector A MSME Product MADE IN INDIA Team: Solo Athlete College: IIM Shillong

Embed Size (px)

Transcript of COLLABORATE TO INNOVATE Promoting Cross Border E … · Handicrafts Books Handlooms Toys Leather...

  • EDITION VII

    COLLABORATE TO INNOVATE

    Promoting Cross Border E-Commerce

    for Indian MSME Sector

    A MSME Product – MADE IN INDIA Team: Solo Athlete

    College: IIM Shillong

  • 1

    Solution

    To address the problem at hand

    How to increase B2C Exports from India in MSME space

    Marketing & Branding MSME Education

    • Niryat Mitra

    • Niryat Saathee

    • Niryat Prakaashan

    • Niryat Parichay

    • Niryat Jaagrooktha

    • Niryat Abhyasika

    Team: Solo Athlete || IIM Shillong

    Identification of

    Products & Markets

    Establishing E-Commerce

    Industrial Park

    Analysis of CBT

    Pillars for B2C Trade

    Miscellaneous

    Recommendations

    One Nation One Brand

    Gifting Strategy

  • Identification of

    Products & Markets

    2

    Rationale of products in this scheme is based on higher preference of consumers to buy

    in CBT or in B2B trade

    Markets

    Parameters for classification

    Online Shopping

    • E-Shopping penetration

    • Average spending/ buyer

    Digital Buyers

    • Absolute no. of buyers

    • Growth rate

    Categories/ Products Target Market

    Clothing and footwear Russia

    Books Australia, South Africa

    Jewellery Thailand, South Africa

    Toys Chile, Brazil

    Sports goods Turkey

    Mapping of products and markets. Source: Amazon, FICCI

    List of markets analysed on above

    parameters is mentioned in Exhibit 3

    Team: Solo Athlete || IIM Shillong

    MEIS E-Commerce Scheme

    Handicrafts

    Handlooms Leather Goods Toys

    Books Cust. Garments

    Exports in FY18 ≈ $ 300 Billion

    MSME’s contribution ≈ 40%

    Mapping of complete list of products and markets is in Exhibit 4

    Potential categories identified in B2C

    CBT for Indian MSMEs: 17, top 4 are

    Gems & Jewellery

    Footwear

    Auto Parts

    Apparel

  • CBT E-Commerce

    Industrial Park

    3

    23 TEE locations with

    potential B2C categories

    Team: Solo Athlete || IIM Shillong

    CBT E-Commerce Industrial Park:

    Collaboration Model

    • MSMEs/ Cluster(s)

    • E-Commerce Marketplace(s)

    • Logistic Service Provider(s)

    • Govt. Agency(s)

    Facilities includes whole industry chain of CBT

    E-Commerce like warehousing, customs

    clearance, training centre etc.

    North Region

    • Panipat

    • Jodhpur

    • Gurugram

    South Region

    • Tiruppur

    • Ambur

    West Region

    • Surat

    • Ahmedabad

    Locations

    13 North Region

    4 West Region 6 South Region

  • CBT Pillars

    Analysis of Technology & Internet pillar

    4

    CBT E-Commerce Pillars

    Policies &

    Schemes

    Technology &

    Internet Logistics &

    Supply Chain

    Infrastructure &

    Customs

    Technology

    & Internet

    E-Commerce Readiness

    IIFT survey on MSMEs

    • Use of computers with

    internet: 60-70% workforce

    • Major communication mode

    with buyers: Email

    • Website for products display,

    not transaction enabled

    Internet penetration

    • India ≈40%

    • Rural ≈21%

    Challenges in

    E-Payment System

    • Lack of financial inclusion

    • Poor knowledge

    • Time consuming & costly

    • Privacy & security concerns

    SMAC: Social Mobile

    Analytics Cloud

    Globallinker by FIEO

    Team: Solo Athlete || IIM Shillong

    ICT Barriers for MSMEs

    • Cost & lack of awareness

    • Poor physical infrastructure

    Data Localization

    India vs. World

    Privacy and Efficiency

    Positive

    Can’t say

    Negative

  • CBT Pillars

    Analysis of Infrastructure & Customs pillar

    5 Team: Solo Athlete || IIM Shillong

    Customs

    Single Window Interface

    for Facilitating Trade

    SWIFT helps in providing

    one stop interaction place

    with 40+ Govt. agencies

    eSANCHIT – Paperless

    processing under SWIFT

    From 1st Sept. 2018 onwards

    eSANCHIT for exports

    implemented on pilot basis

    Issues

    Indian Customs

    EDI System

    Majority of ICES locations in

    TEE are operated on WAN

    bandwidth < 512kbps

    Multiple Invoice Copies

    Invoices for a single product

    shipment are

    • India Post: 3

    • Private Courier: 7

    Shipping

    Bills

    Postal Bill of Exports

    PBE I/ II & CN-22

    From 21st June 2018 onwards

    • Zero rating in GST

    • Sale of Goods in CN22

    Courier Shipping Bill V

    Boon for Exporters

    • Efficient

    • Less paperwork

    • GST compliant

  • CBT Pillars

    Analysis of Logistics & Supply Chain pillar

    6

    India ranked 44 in Logistics

    Performance Index, 2018 44

    Logistics flow of CBT B2C shipments

    First Mile logistics

    Fulfilment

    Processing/ Sorting

    Suppliers

    of E-Tailers

    Warehouse

    in park Indian

    Customs

    Line-haul Delivery

    Foreign

    Customs Overseas

    Warehouses

    Overseas

    Shoppers

    Last Mile Delivery

    Transportation

    Inefficient local

    supply chain infrastructure

    Poor infrastructure in terms of

    connectivity/ courier services

    to nearest customs location

    Pain points in postal services

    • Long delivery lead time

    • Expensive for goods return

    • Tracking & tracing issues

    National Logistics Information

    Portal by DoC

    Announced in FY19 Union Budget, it

    can reduce costs and processing time

    Team: Solo Athlete || IIM Shillong

    E-Commerce Connectivity Index

    Research study on E-Commerce

    connectivity between India & other

    countries is need of the hour

    (recommended to Govt. agencies)

  • CBT Pillars

    Analysis of Policies & Schemes pillar

    7

    Policies/ Trade

    Agreements

    Team: Solo Athlete || IIM Shillong

    Foreign Trade Policy 2015-20

    e-BRC, e-IEC, AEO are some

    of the initiatives undertaken

    RTA & India’s Exports

    India’s efficiency of using RTAs

    to its favour is less. Exhibit 7 has India’s exports and imports performance

    after signing RTAs with ASEAN etc.

    Global Trade Agreements

    AIFTA, CECA, CEPA, RCEP

    E-commerce trade rules were

    never part of TAs except RCEP

    Schemes

    MEIS E-Commerce Reward

    Revised on 27th July 2018 to

    Rs. 5 Lakh/ shipment from Rs. 25K

    Niryat Bandhu Scheme

    Hand Holding for Exporters

    Mentoring budding exporters on

    foreign trade by DGFT, EPCs

    Diwali Gift - MSME exporters

    On 2nd Nov 2018, Govt. increased

    interest subvention on loans for

    MSME exporters from 3% to 5%

  • Miscellaneous

    Recommendations

    7

    SWIFT Mechanism for IGST & ITC

    Instant Tax Refund (Ex: E-Wallet)

    Delay in tax refund hampers the

    working capital of MSME exporters

    Team: Solo Athlete || IIM Shillong

    Cross Border E-Commerce Zone

    Comprehensive Test Area

    Project focusses on streamlining

    process in logistics, warehousing,

    customs and approvals

    Clusters Collaboration

    Niryat Mitra Mobile App

    Exchange of knowledge across

    same product segment MSME

    clusters in different regions

    MEIS E-Commerce Reward

    Updating Products in Scheme

    Products with higher exports share

    like Gems & jewellery, Auto parts etc

    National E-Comm Policy Draft

    Facilitating Cross Border Trade

    GOI should facilitate GeM like portal

    exclusive for MSMEs

  • Marketing &

    Branding

    9

    A MSME Product – MADE IN INDIA

    One Nation One Brand - MSME

    Promote all Indian MSME products under

    one brand to carve Brand India niche

    Brand Identification & Recognition

    Steps to overcome identity crisis

    Mo-MSME support to Indian MSMEs to

    participate in global trade fairs is very

    minimal. Ex: In 2018-19, Global trade fairs approved in IC Scheme are

  • Educating MSMEs

    & Conclusion

    10

    MSMEs Education (Niryat Programmes)

    Niryat Parichay

    Inductions/ Workshops

    Agencies to conduct

    category level inductions

    with Star Status Holder

    Niryat Jaagrookta

    Awareness Workshop

    Awareness on latest

    practices

    Niryat Prakaashan

    Publications

    Research reports in

    vernacular languages

    Niryat Abhyasika

    Study/ Training course

    Enable new generation

    workforce for MSMEs

    CONCLUSION

    CBT E-Commerce is different

    from traditional trade, Govt.

    must recognize B2C exports as

    sector to collect data on it

    Poor awareness of MSME

    products among global

    customers to be addressed with

    branding, promotional activities

    Stakeholders must be up-to-

    date on latest tech, infra, policy

    environment and immediately

    adapt to ecosystem dynamics

    Adopting new modes of

    business comes at a cost, so

    educate MSMEs on infinite

    opportunities E-Com. can offer

    Niryat Saathee

    Intermediary Partners

    Private players reach

    clusters at faster rate (Annexure 1: Amazon Ad)

    Team: Solo Athlete || IIM Shillong

    Niryat Mitra

    Reach MSMEs Digitally

    Increasing MSMEs

    enrolment on mobile app

  • If India buys online, Indians must sell online Goods will be Made in India as well as sourced globally

    Think Global, Act Global

    Team: Solo Athlete || IIM Shillong

    THANK

    YOU!