How Governments Can Encourage and Develop Ecommerce as an Industry

Governments have an important role to play in the development of the business specially small and medium enterprises

Governments in Asia have a great opportunity ahead of them to help small and medium enterprises ride the ecommerce boom and reach global markets.

Not only will it help manufacturing and trading enterprises in the state, it will also help in the development of business for a range of suppliers and ancillary service providers

Here are a few initiatives that State Governments can take to assist small and medium enterprises in the area of ecommerce.

1. Small development across Industries

2. Ecommerce infrastructure development

3. Financial schemes and benefits for enterprise embracing ecommerce

4. Cross border ecommerce assistance

Skill Development

Initiatives in this area include:

1. Awareness building within the Government officials and staff about ecommerce, how it works, benefits and processes

2. Initiatives at a owner/CEO level amongst enterprises

3. Specific skill development initiatives for ecommerce workers including creation of courses for skill development centres

Ecommerce infrastructure development

This could include:

Creation of ecommerce parks and zones that have access to a pool of resources that bring together the key elements of the ecommerce ecosystem including service providers from

1. Warehousing

2. Logistics

3. Technology

4. Marketing Packaging

5. Customer service

Creation of Free Trade zones for ecommerce:

While the intention is to develop ecommerce out of the state, a free trade zone can facilitate import of components and unfinished goods that can be converted to finished goods within the state. This would encourage overseas brands to establish their local manufacturing in the state and use the infrastructure specially for Cross Border ecommerce

Financial schemes and benefits for enterprise embracing ecommerce

Government can also have financial schemes for ecommerce initiatives, government can also provide subsidies and reimbursements for areas like:

1. Technology investments by the enterprise in ecommerce

2. Incentives for sales based on achieving sales targets

3. Export subsidies for Cross Border ecommerce

Cross Border ecommerce assistance

Government can assist small and medium enterprises with Cross Border ecommerce in the following ways:

1. Publications of guides and relevant content to assist small and medium enterprises to learn about cross border ecommerce

2. Alignment with International online marketplaces that enable Cross Border ecommerce

3. Appointment of consultants to assist specific segments and industries to embark on Cross Border ecommerce.

4. Creation of a Cross Border ecommerce association under the Government to be able to bring together resources and service providers who can work with enterprises to enable Cross Border ecommerce.

In Summary, Governments can play an important role in assisting small and medium enterprises leverage the ecommerce and digital movement. The next few years are a critical time during which enterprises need to be on path to be able to stay relevant and be available for consumers when and where the consumer is – In cyberspace

The author is a principal consultant with Tiger Pug Pvt. Ltd, a Singapore HQ ecommerce & direct to consumer services firm. Ajay has lived and worked in Singapore, India, China and USA and is directly involved in businesses in the area of brand ecommerce and cross border ecommerce

The above comments are not directed to any specific Government nor are they an assessment of how any Government is performing in this area. They are merely ideas

For more information, please Whatsapp +65 83886673 or email ajay@tigerpug.com