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BIG TAKEAWAYS OF STUDY BY KPMG IN INDIA AND GOOGLE, 2017

Offline SMEs run the RISK of slower growth & fall in market share

  • Offline SMEs run the RISK of SLOWER GROWTH in revenue and customer order.
  • Indian SMEs who not adopt Digital Marketing will be faced with FALL in MARKET SHARE
  • Their slower growth and fall in market shares will be due to their dated knowledge of market trends and customer preferences.
  • Indian SMEs must therefore, adopt digitisation to remain relevant.

IMPACT OF INTERNET AND DIGITISATION ON SMEs IN INDIA

Digital SMEs grow REVENUES and PROFITS up to twice as fast as Offline counterparts.

  • The analysis found Digital technologies such as websites, social media, online advertising, and e-commerce give SMEs greater market reach and ability to engage with customers better.
  • Indian SMEs who adopt Digital Marketing have nearly twice the revenue trajectory as compared to Offline SMEs. They grew revenue by 19% Year on Year (YOY) as compared to 11% of an Offline counterpart.
  • As with revenue growth, the analysis found that Indian SMEs who adopts digital marketing grow profits faster by 19% YOY as compared to 10% of an Offline counterpart.
  • They are 4 times more likely to experience above average rate of growth of Revenue as well as Profit compared to Offline SMEs.

59% of digitally Engaged SMEs cater to customers beyond city boundaries as compared to 29% of Offline SMEs.

  • Digital engagement can help SMEs grow beyond local boundaries to state, national and international markets. Improved reach helps them to de-risk revenues by reducing dependence on individual markets.
  • The analysis shows that 71% of Offline SMEs operate 'Within the City' as compared to 59% of digitally engaged SMEs.
  • SMEs adopting digital marketing find themselves in an advantageous position to access global markets with the rapidly improving local and international digital ecosystem.
  • Therefore, greater digital engagement could therefore, be a major driver for increasing exports.

Digitally Engaged SMEs generate 5 times more employment compared to those Offline

  • Digital engagement leads to increased business scale through greater revenue growth and market reach.
  • They are able to capture greater efficiencies through wider distribution of fixed costs and therefore, improved profitability.
  • This directly increases the demand for personnel by digital SMEs.
  • Similarly, due to digital technology adoption, SMEs generate requirement for skills across the spectrum of IT, telecom and online channel management.

SME Success Stories

A large number of Indian Enterprises, new or traditional, are adopting digital marketing to grow and expand in different ways.

To know more how you could benefit from Abhiyan Digital's SME Initiative, please fill in the below details.

To know more how you could benefit from Abhiyan Digital's SME Initiative, please fill in the below details.