Offline SMBs in India witnessing 8% decline in revenue growth: Report
Less than a third of SMBs in India are using cloud tools to store data, market their business, or manage relationships with their customers.
Small and medium businesses (SMBs) in India that use cloud and mobile tools are reaping huge dividends, according to a report released by Deloitte and Google. Moving from offline to advanced digital engagement could see revenue growth up to 27 percentage points higher for individual SMBs.
However, two thirds of Indian SMBs are currently missing out, according to the report 'Connected Small Business: Unlocking India’s Digital Potential'.
The survey of 500 businesses analyses the digital engagement of Indian SMBs to understand how digital technology could help them, and what that would mean for India as a whole.
“India has huge potential to become one of the biggest economies in the world and digitisation is one of the important factors that can make a significant difference,” said Prakash C Prabhakar, Director, Deloitte in India. “While conducting this study, we realised that two-thirds of Indian SMBs are missing out on a huge digital opportunity. In today’s time, technology is a critical success factor and can be the differentiator between success and failure.”
Interestingly, the report revealed that one-third of Indian SMBs operate totally offline - with no devices and have no online presence. These businesses see their revenues declining 8 percent annually.
A further 31 percent of Indian SMBs only have basic digital engagement. These businesses experience annual revenue growth that is 8 percentage points higher than a base group of offline businesses.
However, those businesses that are digitally advanced are growing 19 per cent annually.
Majority of Indian SMBs are not taking full advantage of digital technologies. In particular, the report found that while Indian SMBs are highly active on social media, they are less avid users of e-commerce and online advertising. Over 80 percent of respondents are using some form of social media platform to promote their business and almost 40 percent use mobile messaging platforms. In comparison, only around a quarter of respondents had e-commerce capabilities or listed their business on online directories services.
Subscribe to Moneycontrol Pro at ₹499 for the first year. Use code PRO499. Limited period offer. *T&C apply
Older shoppers become big spenders online as COVID-19 accelerates digital transformation among seniors
The internet has become a crucial link to the outside world during the pandemic, one that millions of people still don’t have access to.
The new audio codec is in the testing stage currently and will come in handy for the users who do not have access to high network connections.
The face-based version of auto-rotate will automatically sense the way a user is looking at the screen and change the orientation accordingly.