MSMEs have shown great resilience and tenacity to overcome the impact of the pandemic by adopting a digital first approach and adapting to the needs of the new digital consumer. Currently, 66% of MSMEs use social media as an online selling channel, followed by marketplace (62%), company owned platforms i.e., app (61%), own ecommerce website (54%) and third-party ecommerce platforms (54%).[i]
Digital has been a key enabler for small businesses in India. Similar to the trend witnessed in countries such as Singapore and Hong Kong, social media is now one of the most popular channels for selling online. Interestingly, a significant number of small businesses began to sell on social media during the pandemic with 56% calling it a key driver for growth.
While the user-friendly interface and natural transition from non-sale purpose to selling are top reasons to utilize social media platforms, growing competition has emerged as a strong reason for its popularity. 65% of Indian SMBs claimed adopting social media after seeing their competitors do the same.
Apart from the fact that selling on social media is extremely easy and promotes healthy competition, it has also helped brands understand and educate their audience on social causes.
[i] https://newsroom.in.paypal-corp.com/MSME-Digital-Readiness-Survey-2021