E-commerce helps MSMEs become competitive: Report

28 Apr '18

2 min read

Courtesy: International trade centre

Cross-border e-commerce increasingly helps micro, small and medium-sized enterprises (MSMEs) to become more competitive in international markets, says a recent report. For companies to realise that potential, they need more and better market intelligence on e-commerce. The report suggests that e-commerce tends to focus on higher value-added products.

A new publication from the International Trade Centre (ITC) and AliResearch, What Sells in E-commerce: New Evidence from Asian LDCs, uses market data from Alibaba.com, the world’s largest online business-to-business (B2B) marketplace. It gauges demand trends by identifying which products from five Asian least developed countries – Bangladesh, Cambodia, Lao People's Democratic Republic, Myanmar and Nepal – are attracting the most purchase inquiries from abroad.

E-commerce helps countries to diversify their export base, says the report. Apparel and clothing account for around 86 per cent of Bangladesh’s total exports, but only 47 per cent of online demand. MSMEs are increasingly using e-commerce to export. According to data extracted from Alibaba.com, the number of sellers from the five Asian least developed countries grew by more 30 per cent annually in the past two years.

Data also shows changes in the competitiveness of a variety of sectors. For example, demand for textiles and leather products from Lao People’s Democratic Republic increased rapidly in the past two years, suggesting a rapid increase in business competitiveness.

‘What Sells in E-commerce: New Evidence from Asian LDCs’ is ITC’s first publication using proprietary e-commerce data to provide market intelligence for MSMEs to identify demand for their products in international markets. (KD)

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