The COVID-19 pandemic has created destruction across the entire industry including small, micro, and medium-sized companies (MSMEs).
Since its creation since its inception, it has been a thriving MSME industry has given the opportunity to be a part of the development of entrepreneurship, especially in the semi-urban and rural regions of India. MSME have been an important contributing factor to the nation’s socioeconomic growth. Because of their contribution to the country’s gross domestic product, the sector has seen an exponential growth in the last few years. However, the devastating impact from COVID-19 caused the sector to fight for its survival and overcome the obstacles that have affected the industry.
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Influence of COVID-19 pandemic
It is believed that the MSME sector was among the sectors that was most susceptible to the outbreak due to its size, size and access to financial resources. The shutdown, which was not tested, slowed business activities within the MSME sector, and triggered obstructionary shocks in terms of job losses as well as a reduction in production, income and supply. To cope to meet the demands it is evident that this MSME sector has transformed the way they conduct business by embracing digital transformation and technological innovations that have been a blessing in disguise. Thus, the new norm has laid the foundations in the near future.
To meet the challenges brought about from the COVID-19 outbreak, companies such as MSMEs had to undergo numerous changes, including adopting a digital approach and implementing new business strategies to match the current norm.
Digital technologies that are emerging have made it easier for companies to run their operations more efficiently and offer better customer service. Implementing these technologies is crucial in order to obtain accurate financial information and stay in the race to stay.
The path to take in the new normal
It is clear that the MSME sector was definitely affected by the change in the norm and required to modify its business practices, embracing technological advancements and trends. These changes will continue until the time everything is back to normal.
Digitalisation and modern technology have become the century’s most powerful force. Every industry recognizes the importance of digitalisation as well as the advantages of embracing technology.
To meet the demands, Indian MSMEs have acknowledged the importance of digitalisation. Numerous businesses have also adopted this trend to communicate with their customers and benefit from digital technology. Furthermore, businesses have also launched online stores. Many online retailers have utilized technology to make it easier to purchase process for buyers who are first-time buyers , by adding features like voice assistants that come with a localized interface. In addition, a number of companies have teamed up to make significant gains within the MSME business. Additionally, many platforms are encouraging digital payment through discounts, rewards and cashback alternatives to lessen the dependence on cash-on-delivery systems.
In this situation due to the growth of shopping online, e-commerce sector has redefined the customer experience by focusing on providing an experience in the store, similar to the mall. This is done by sending targeted emails, evaluating the habits of shoppers, and presenting specific suggestions based upon their preferences and requirements. Big data can also be utilized to suggest related products. To take advantage of the potential for growth over the long term, e-commerce businesses have also boosted their capabilities to accommodate more sellers and the change in the structure of customer behavior.
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Numerous industries have been booming in response to the changing trend and the field of gifting is no different. The increasing number of people are now buying gifts intended to make their family members feel special and strengthen their bonds with family and friends, which has led to the explosion of personalisation within the gifting business. When requests began to flood in online, the industry stepped up its game by streamlining logistics and increasing its workforce to cope with the surge. Market players can now design, produce and ship their finished products in record time due to the rapid growth of digitalisation and modern manufacturing techniques and technologies. Because of these advancements the market for gifting in India is projected to reach $159 million by 2025 as per Tech Sci Research.
The notion that there are no break-ups from moving to digital is beginning to gain popularity. If you miss the train, you may die or be forced to take an uphill, rough path.
