Answer to Question #194939 in Management for Morri divya

Question

1. The recent Covid-19 pandemic has turned the world upside down with several businesses shutting shop owing to mounting losses. Yet, in these pandemic times, e-commerce is one twinkling star that has been gathering strength after strength. How has Direct Selling Experience via Amazon India helped small scale manufacturers of handicrafts or any other item of your choice during these pandemic times. As an external consultant, try to analyse the reasons behind the success of these small-scale manufacturers. Provide some statistics on how technology has made the lives of small-scale manufacturers simpler? In your opinion, do you see this as a future once the Covid-19 crisis gets over or do you see manufacturers trying to sell their handicraft/other products face to face again? 

Answer 1

Answer: E-commerce

The term e-commerce refers to the amalgamation of tools built on information and communication technologies (by and large known as business software) to enhance their performance. This builds value for the company, its customers, and its affiliates. E-commerce spans much further than e-commerce or purchase and sale across the Web and delves into the procedures and background of a business venture. E-commerce is a powerful business setting formed when one connects critical business systems directly with consumers,  workforce,  traders,  and business associates using the intranet,  extranet,  e-commerce technologies,  two-way applications, and the Web.  It is more than a smart Web presence or a slick, flash-driven shopping cart. This is a critical surfacing of business worldwide, with several technologies getting into the enterprise computing ecosystem. E-commerce provides a powerful mechanism for companies to enhance productivity and bring down costs.

Current scenario

As we all know, the whole world is suffering from this coronavirus, and the main impact is on the working people. Many people lost their jobs, man businesses closed, and some experienced huge losses. Many companies suffered during this coronavirus period. They were affected badly because in this pandemic period, because of lockdown, they could not sell their items and faced a terrible financial crisis. In this situation, Ecommerce came into the picture and offered to sell their items on their website, such as Amazon India. Amazon India is one of the biggest E-commerce companies in India. When it provides you with a platform to sell your items directly to the consumers, it may help you a lot in your business. If you check the data, thousands of small-scale manufacturers registered with Amazon India post lockdown and earned decent money. 

 

Reasons behind the success of small-scale manufacturers (Selling directly via Amazon) Big platform: Amazon India is doing exceptionally well in our country and gives tough competition to Flipkart and some other strong players. Amazon India serves millions of customers weekly; in this scenario, small-scale manufacturers of handicrafts got a good platform where they can show their talent to the world and earn a good amount of money. Amazon is trusted by most of us regarding providing quality products and an easy return policy, so; small-scale manufacturers enjoyed the benefit of Amazon’s goodwill.  Location advantages: Earlier, many small-scale manufacturers of handicrafts items used to sell face to face, which was limited to some areas, but after registering themselves on E-commerce websites, they are getting orders from all over India, which was never possible in direct selling. Their talent is recognized by millions of people now, and they must realize that E-commerce is

Situational advantages: Corona has impacted us badly, especially the small businesses involved in face-to-face selling. Lockdown restricted us from visiting the markets and buy various stuff. When Amazon India asked small manufacturers to register on its website and sell online to the consumers in this scenario, small manufacturers got the situational advantages; otherwise, they would have suffered a lot.

The demand for handicrafts: Indian handicrafts are demanded and appreciated worldwide widely for their traditional and regional arts. The Indian handicraft industry is highly labor-intensive and decentralized, spread across the country in rural and urban areas.  The sector is considered the second-largest employment-generating sector after agriculture, with numerous artisans engaged in craftwork on a part-time basis. The industry offers employment to over 6 million artisans, including many women and people from the weaker sections of society.  The present-day handicraft tradition of India is a perfect example of assimilation between traditional designs and modern techniques.

How technology is helping small scale manufacturers

Small businesses don't necessarily have the resources to make large investments in technology, but the disruption has made them realize how adapting to digital can help them take advantage of opportunities in today's changing environment. Even as MSMEs are struggling for survival, it is crucial to evaluate what the Government and technology companies can do to help small businesses carve out a growth path for themselves.

Major E-commerce websites Amazon and Flipkart saw a record participation of small and medium scale enterprises on the platform. Flipkart said that it onboarded nearly 8,000 sellers post lockdown, with more than 70 percent of them coming from smaller towns. On the other hand, Amazon India mentioned that it added around 11000 sellers post lockdown. Amazon is the biggest platform for  Indian handicraft manufacturers, including lakhs of artisans and weavers. Over eight lakh artisans and weavers are associated with 1,500 Amazon Karigar sellers and 17 government emporiums. There is a separate handicrafts program where manufacturers from any country can participate and sell their goods. No doubt, we have come a long way when it comes to manufacturing and selling, and technology helped us in a big way achieving all this.

Situation after Corona

We all are fighting with deadly coronavirus, and even after the vaccines have developed, the road ahead is not easy. From a small business's point of view, it will take more time than expected to come back on track. Even when the corona is over, small-scale industries will have a tough time re-establishing themselves; on the other hand, E-commerce websites have provided these small-scale manufacturers a good platform to connect with their customers of them like this procedure. As per my view, E-commerce is the future, and to take the complete benefit of technology and opportunity, small-scale handicraft manufacturers should continue selling online. It will be advantageous for them in the long run, and if they can manage offline as well, they should plan accordingly.