Digital Surge: India's SMBs Embrace E-commerce Amid Economic Challenges

Indian SMBs are increasingly pivoting to online sales, with 60% identifying e-commerce as their key platform. The trend is more pronounced among medium businesses at 67%. The shift is driven by digital convenience and diverse products, while inflation pressures prompt strategic adjustments in pricing and distribution.

In a significant shift within India's retail landscape, small and medium businesses (SMBs) are gravitating towards online platforms as their mainstay for sales. A recent report by NielsenIQ reveals that 60% of these businesses view e-commerce as their most critical sales channel. This movement is more marked among medium-sized enterprises, 67% of which cite digital platforms as their primary channel, overshadowing smaller enterprises at 51%.

The report highlights a regional uptick in the adoption of digital strategies to reach broader markets. While online avenues are gaining traction, traditional convenience stores are also witnessing growth, boasting a 48% penetration rate compared to a global average of 18%. Not only large corporations but 58% of them consider this channel crucial, prompted by a 54% adoption rate among medium enterprises and 40% among small businesses.

Pallavi Suresh, Executive Director of Emerging Brands at NIQ India, attributes this surge partly to the convenience of online shopping, diverse product selection, and the popularity of fast-moving consumer goods like noodles and biscuits. However, inflationary challenges persist, driving businesses towards innovative pricing and distribution strategies. While larger firms diversify their distribution networks, smaller businesses focus on cost-effective measures to maintain market stance.

(With inputs from agencies.)