About 20.5% Women-led MSMEs Generate 19% Employment In India: Report
Data shows that WhatsApp usage among longtail sellers increased from 35 per cent at inception to 40 per cent currently and among SMBs from 25 to 30 per cent
Amid the continuous issues related to easy access to credit and gender bias faced by women-led micro, small and medium enterprises (MSMEs), a report by Shiprocket has revealed that about 20.5 per cent of registered businesses are pivotal contributors to the growth while generating 19 per cent of employment.
In India, significant obstacles such as gender bias, lack of digital literacy and balancing work and family responsibilities are hindering women-led MSMEs from fully realising their potential in this industry. While there is a growing presence of industry bodies, NGOs, and women empowerment councils dedicated to empowering women entrepreneurs, access to technology and digital literacy remains a key hurdle, especially in rural areas.
Looking ahead to the USD 300 billion future of the Indian ecommerce market, Shiprocket’s report titled ‘How MSMEs of Bharat sell online’ highlighted the critical need for inclusive growth. It added that sustainability concerns are reshaping consumer preferences and MSMEs are adapting to these changes by increasingly adopting eco-friendly practices in logistics, such as sustainable packaging and electric vehicles. MSMEs are witnessing a rising demand for ethically sourced products like vegan beauty products, organic wellness items, and sustainable pet care products.
The rise of ecommerce in India is fueled by the country’s digital revolution– increased internet penetration, smartphone usage, and digital payment systems. Major cities like Delhi, Bangalore, and Mumbai are prominent hubs for sellers, with Delhi alone accounting for around 6 per cent of the total orders in 2023. While the seller contribution in urban hubs is driving ecommerce activity, the majority of orders– around 71 per cent, originate from non-metro areas.
Regarding consumer preferences, MSMEs witness a rising demand for products in the Personal Care category, representing 27 per cent of orders in Q12024, with apparel and footwear and electronics following at 20 per cent and 9 per cent, respectively. MSMEs witnessed a preference for weekend shopping in buyers, with 84 per cent of orders placed during this time, and a significant trust in digital payments, as evidenced by 42 per cent of buyers preferring prepaid methods.
Notably, MSMEs have witnessed a surge in orders coming from Maharashtra (15 per cent), Karnataka (10 per cent) and Uttar Pradesh (9 per cent) and a variety of shopping habits, with 53 per cent of buyers identified as discount value seekers and 84 per cent of buyers prioritising quality over price. Sellers have observed that 68 per cent of orders placed in 2023 were discounted, and shopping peaks between 12 PM and 6 PM.
As MSMEs continue to ride the ecommerce wave, they are increasingly adopting advanced technology solutions to stay ahead. Marketing automation tools are being integrated to optimise campaigns, personalise customer interactions, and boost marketing efficiency. Social media marketing, particularly through platforms like WhatsApp, has seen significant adoption among MSMEs.
Data showed that WhatsApp usage among longtail sellers increased from 35 per cent at inception to 40 per cent currently, and among SMBs from 25 to 30 per cent.
Moreover, data analytics tools are helping MSMEs gain valuable insights into customer behaviour, optimise product offerings, and make informed business decisions. By analysing sales data, tracking customer preferences, and identifying trends, these tools are empowering businesses to improve their overall strategic planning.
