71% of companies report an increase in sales during the holiday season: CIRC survey
CUTS Institute for Regulation and Competition (CIRC), a non-profit research and capacity building organization, conducted a consumer survey and key informant interviews (KIIs) with small vendors to release a report of research titled “Party Economy and Online Retailing for MSMEs in India. The survey found that 42% of online businesses experienced moderate to exponential growth in sales, with 71% reporting a significant increase in sales during the period celebrations.
A sample of 353 consumers was interviewed, of which 331 respondents buying online were taken into account for the analyses. 14 small sellers were also surveyed using semi-structured questionnaires to understand their experience around online retail during the pandemic and holiday season.
Arvind Mayaram, former Finance Secretary of India and President of IARC, said, “E-commerce sales, especially during festive seasons, hold great promise for the livelihood of SMEs in India. The benefits of the festive boom on e-commerce channels are also having a cascading effect on employment in complementary industries. For example, e-commerce giants like Amazon have already hired 1,10,000 seasonal workers in the country and continue to create new job opportunities.
India is a land of vibrant traditions and festivities that are celebrated all year round. These festivals create economic and employment opportunities for businesses directly or indirectly, especially local MSMEs. But since COVID-19 hit the economy, e-commerce has offered much-needed resilience to keep businesses afloat and facilitate a post-pandemic economic recovery, providing MSMEs with access to a wider audience, helping to increase production, accelerating the digital transformation and strengthening exports.
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