Pockets of PotentialPotential to building an online presence among Small and

Medium Businesses in IndiaReport By

December 12 ,2014

2

SETTING THE CONTEXT

Which segments were covered?

How did we arrive at the findings ?

What was the coverage?

Whom did we speak to?

1000 business were covered

across the Urban India- (Across Tiers

I-V)

Both through

Focus Groups &

through Structured face to face interviews

Micro (1-10 Emp)

Small(11-100 Emp)

Medium (101-500

Emp)

64%were business

owners

51% have B2C clients

87%

have their clients based

in India

64% Indicate that technology is extremely critical for their business

On a average business were

more than 8 years old3

Total number of targetable organizations

Number of MSMEs in urban India

PC owning MSME

Website ownership

98%

54%

10 Million

10.2 Million

5.29 Million

26% 1.35 Million14% of the total MSMEs in urban India have a website

THE RELEVANT MSME UNIVERSE

Urban India has about 10 million targetable* MSMEs; 14% of these businesses have a website currently

* Defined as businesses that have at least one telephone lineSource: ITOPS 20144

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SO, WHO ARE THE BUSINESSES THAT

HAVE ADOPTED WEBSITE?

MSME’s engaged in BFSI, Education, TTL and Technology show highest adoption of website

Penetration of website by vertical

6Source: ITOPS 2014

Health care

Real Estate

Retail

Manufacturing

Technology

TTL

Education

BFSI

10%

10%

10%

14%

17%

17%

24%

35%

However, Education, BFSI & Technology show high intention as well. Retail & Manufacturing are rising stars

Bubble Size represents the segment size in the universe

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Education BFSI

Real Estate

Technology

TTL

Manufacturing

Healthcare

Retail

Potential verticals

Key segments Emerging segments

0% 5% 10% 15% 20% 25% 30% 35% 40%0%

10%

20%

30%

40%

50%

60%

Current Adoption →

Inte

ntion

→

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BFSI

Provide value added service and expand business

Education

Brand building

Technology

Portrays a professional image and brand building

Universe size: 640,000Penetration: 17%Purchase intent: 40%

WEBSITE

Universe size: 400,000Penetration: 35%Purchase intent: 40%

Universe size: 370,000Penetration: 24%Purchase intent: 38%

WHERE ARE THE NEXT LEVEL OPPORTUNITY EMERGING FROM?Ke

y Be

nefit

for

the

segm

ent

Universe size: 2,500,000Penetration: 10%Purchase intent: 35%Retail

Emerging Segments

Universe size: 1,700,000Penetration: 14%Purchase intent: 48%Manufacturing

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HOW DOES WEBSITE FARE VIS-À-VIS OTHER

ONLINE MEDIA?

Website has the highest relevance amongst online media. Other online media grouped together

1

Website

40%

2

Social Media

33%

3

Directory Listing

31%

4

Corporate Mail Id

31%

Relevance Online Media

10

Relevance of commonly used tools for marketing

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No online Presence

(48%)

Adoption of online media

WEBSITE33%

CORPORATE EMAIL ID

28%

SOCIAL MEDIA28%9%

7%3%

3% 1%

14%

15%Online

Presence (52%)

Retail TTL Healthcare Technology Manufacturing Education Real Estate

56% 21% 8% 7% 4% 2% 1%

Has online presence but not website

There are about 2/3rd of businesses that have online presence but do not have a website…. Offers significant opportunity…

Total Retail IT/ITES BFSI Education Mfg.

19%

12%

33% 34%29%

21%

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This opportunity is largely driven across the key verticals. Retail emerges as a potential vertical

Corporate Email ID Directory Listing

Total Retail IT/ITES BFSI Education Mfg.

31%28%

35%

28% 30%

36%

Total Retail IT/ITES BFSI Education Mfg

33%

21%

55% 54% 52%

33%

Social Media

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WAY FORWARD – HOW DO WE

DRIVE ADOPTION?

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Having a website is a way of building professional image & branding for SME’s in Education sector; but largely see it as belonging to larger organizations

Education

• Portrays a professional image

• Brand building

• Increases reach and access to new markets

• Acts like a catalogue

• Necessary for all businesses

• It is for large organizations

• Use other means to reach out to customers

• Customer’s are not tech savvy

• Customers don’t expect

• No need for website

Trig

gers

Barriers

…. I am sitting in India and my website is seen all over the world and how many people are watching my site I can know that..

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SME’s engaged in BFSI segment sees website as a branding mechanism; but don’t feel the need to adopt as they reach out to their customers in other ways

BFSI

• Brand building

• Portrays a professional image

• Increase sales

• Increases reach and access new markets

• Expansion of business

• Reach out to customer’s in other ways

• Customer’s don’t expect

• Customer’s are not tech savvy

• No need for website

• It is for large organizations

Trig

gers

Barriers

….I can give you an example, banks have some websites, you don’t have to visit the branch and you can do everything over the internet..

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SME’s in the Technology segment see website as a means to increase reach and get access to new markets; but mostly reach out to their customers reaching other means

Technology

• Portrays a professional image

• Increase sales

• Increase reach and access to new markets

• Acts like a product catalogue

• Expansion of my business

• Customer’s don’t want

• Limited knowledge on creating website

• Reach customers in other ways

• Can invest in more effective ways

• Have other priorities

Trig

gers

Barriers

….Website are not only for corporate profile and all, actually exchange of goods and services are taking place…..

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Increase in sales and expansion of business are key considerations for SME’s in retail segment; however they don’t see necessity to have a website in their business

Retail

• Increase sales

• Portray a professional image

• Brand building

• Expansion of business

• Other organizations in same

• Reach out to customer’s in other ways

• No need for website in business

• Customer’s don’t expect

• It is for larger organizations

• Have other priorities

Trig

gers

Barriers

…. I’ve recovered my next 5 years expenses also with regard to the website cost and this business was done online.….

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Increase in sales and expansion of business are key considerations for SME’s in retail segment; however they don’t see necessity to have a website in their business

Manufacturing

• Portray a professional image

• Increase reach and access to new markets

• Increase sales

• Necessary for all business

• Brand building

• Customer’s don’t expect

• Others in the industry don’t have a website

• Customer’s are not tech savvy

• No need for website in my business

• Maintenance is costly

Trig

gers

Barriers

…. Suppose if you are in pan India business, it is a big country and on an online website a person can solicit an enquiry about my product and can communicate to me…..

…

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WHAT IS THE PREFERRED DOMAIN?

10% 48% 33% 4% 2%

Extremely Important

Bottom 2 boxesMiddle Box

20

Domain name extension are found to be important and ‘.Com’ score in terms of awareness, preferences and adoption

Only 9% MSMEs own more than one domain

TOP 2 Boxes

Not Important at all

Importance of domain name extensions?

81%

12%4%1% 1%1%

.org

.edu

None

.co.in

.in

.com

82%

11%4%

1% 1%

.net

.edu

.co.in

.in

.com .ac

.gov

.edu

.org

.net

.co.in

.in

.com

1%

1%

1%

2%

3%

9%

17%

74%

Awar

enes

s

Pref

eren

ce

Adop

tion

Q&A

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THANK YOU

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