For long , marketing pundits have been telling us :
" Internet
is all about disintermediation . There is no place for middlemen .
Distributors /
Dealers / Agents / Retailers etc , will gradually become redundant .
With arrival
of Online Market Platforms ( aka, e-Commerce web sites ) , manufacturers
will
accept orders online and directly deliver to end users , bypassing supply
chain "
Coming from Marketing Gurus of Harvard etc, this was
accepted as Gospel Truth !
Now a bunch of Indian Start-ups are proving them wrong
!
These are , Bluebox / Browntape / Unicommerce ( and
others I have not heard of )
How ?
By acting as " Middlemen " ( of some sort ) between e-Commerce web sites and MSMEs of
India
And what role do these " Middlemen " play ?
* Getting MSME
listed on e-Commerce web sites as " Sellers "
* Cataloguing
their products
* Managing
their inventories
* Reconciling
payments
* Maximizing
Sales
* Photo-shooting
products.......etc
Is there a big enough " Market " for such
" Middlemen " Start-ups ?
Consider this :
# There are 500
lakh MSMEs in India
# Of these ,
barely 3.6 lakhs are currently registered as " Sellers " on
e-Commerce web
sites , distributed as follows :
* Flipkart............... 60,000 sellers
* Amazon.............. 100,000 sellers
* Snapdeal............ 200,000
sellers
# Indian
e-Commerce market was worth mere $ 5.3 billion in 2014
# As per Merril
Lynch , this would go up to $ 220 billion by 2025, with 530 million buyers
So , there is scope for many more of such "
Mentoring Middlemen "
May be some such " Middlemen " can help the
MSME to export their products, considering that India's exports have been continuously
shrinking for past 10 months
Is there a " Scope " to increase exports from
MSME ?
Take a look at the following :
---------------------------------------------------------------------------------
Country /
No of MSME / Ave
Export / year ( $ )
----------------------------------------------------------------------------------
----------------------------------------------------------------------------------
Singapore /
9,296
/ 6.74 Million
------------------------------------------------------------------------------------
Malaysia /
28,840
/ 2.05 Million
-------------------------------------------------------------------------------------
S.Korea
/ 2.9
million
/ 45 , 000
-----------------------------------------------------------------------------------
India
/ 30 million
/ 4, 000
------------------------------------------------------------------------------------
Now , even if each of our MSME succeeds in exporting just $
40,000 worth of exports per year , that would amount to ,
$ 40,000*50 million !
Currently each MSME ( on an average ) employs 2.5 persons
How many more persons would 50 million MSME need to employ , if
each were to raise exports by 10 times ? ( from $ 4000 to $ 40,000 )
It is reported that , even at the current level of operations ,
India's MSME sector creates 1.3 million jobs every year
For raising (Ave) MSME exports by 10 times , would that figure
go up to 13 million new jobs / year ?
Enough to absorb the 12 million persons joining our job market
each year ?
It is time for Indian Governments ( Central + States ) , to encourage
these " Mentoring Middlemen " Start-ups , by abolishing for them , Corporate Income
Tax , for next 10 years
Anything other than such a " BIG BANG
REFORM " , will amount to tinkering !
---------------------------------------------------------------------------------------------------
hemen parekh
19 Nov 2015
B2BmessageBlaster
----------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------
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