B2B portals can provide promising benefits to exportersIt is one of the talk about the online trading in India from trade india portal as mentioned by the CEO rightly.....
Despite slowdown, India's growth rate has been sustainable and the overall impact on the economy has been positive. Having said that, if the same performance is reviewed on a global scale, the scenario may start looking different with the country's share in the global export market continuing to be minimal. Ironically whereas India dominates the proceeding in Information Technology (IT), its imbalance in growth owes to disproportionate usage of IT services by its important industrial sector — the SME sector, particularly those into exports.
All will agree with me that in today's globalised and competitive world, exports assume critical importance in an effort to garner a fair share of world trade. While India has adopted newer policies and strategies to promote exports, the total productivity has, however, shown signs of slow growth.
India has various strengths in terms of low-cost skilled labour, availability of raw materials, diverse design base in various sectors and vertical and horizontal integrated value chain in key sectors like textiles, etc. But the question here arises: "Are these enough to take India to the next level where it can dominate global proceedings?"
I personally feel that these are not enough! SMEs will need to make considerable effort and formulate concerted strategies in planning their entry into the world market. They need to sharpen their competitive edge by flushing out indifference in the entire supply chain, put higher emphasis on value, delivery and service rather than just on price.
Studies have amply shown that B2B market mechanisms have enabled SMEs to overcome the limitations of traditional markets such as poor market liquidity, high transaction costs and low operational velocity.
I have always believed that whereas traditional markets have several limitations, B2B portals can provide several promising benefits to exporters to capture and operate in new markets. Online markets play the fundamental role of connecting exporters and importers situated geographically far away through a virtual market place, thereby significantly increasing the reach.
Transaction costs including costs of negotiating, drafting and safeguarding an agreement between trading partners as well as set-up and running costs associated with the governance can be brought down considerably via B2B market mechanisms.
From my experiences, I can conclude that online markets have enabled exporters to overcome the trade-offs that is characteristic of traditional markets. In the wake of various challenges in terms of increasing uncertainties and intense competition, with the right online marketing strategy, even the smallest exporter can go places too and create a niche for himself or herself.