 "UP traders ready to log onto e-commerce")
In order to keep pace with changing times and to protect their traditional brick-and-mortar businesses from the 'onslaught' of e-commerce, the traders in Uttar Pradesh are now rising up to the challenge.
At a time when e-commerce startups viz. Flipkart and Snapdeal are raking in billions of dollars worth of market cap riding on the catching fad of online shopping, the traders have realised the futility to oppose online shopping.
There are over 7,26,000 registered traders in UP, while the number of unregistered and sole proprietorship shops/establishments is estimated over 10 million. The livelihood of over 50 million people depends upon these establishments, which primarily includes shops and small trading firms.
Taking the lead, a prominent traders' organisation has already started holding training and awareness workshops on online shopping and e-commerce. The first such workshop was held in Lucknow, which was attended by about 350 traders, Uttar Pradesh Adarsh Vyapar Mandal president Sanjay Gupta told Business Standard.
The Mandal is exhorting traders to either make their e-commerce foray directly through individual website or hook on to popular online shopping portals, which have also started to network with traders at local level to serve their local buyers.
"We are telling the traders that mere opposition to e-commerce would serve no purpose, but only hit their businesses. If we want to retain our customers and expand our business, the traders has to be present both in physical and online formats," he said.
The Lucknow workshop featured online trading experts from Mumbai, Delhi and Kolkata, apart from representatives of top commercial banks such as State Bank of India (SBI), Bank of Baroda, Small Industries Development Bank of India (SIDBI) etc.
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"Now, we are planning to hold similar deliberations in other cities," he informed.
Last month, e-commerce portal AskmeBazaar.com had launched its hyperlocal format in UP to connect local buyers and sellers and offer Next Day Delivery (NDD) for local buyers. The company plans to connect about 50 more tier-II and tier-III towns in UP and other states to such format.
Meanwhile, Akhil Bharatiya Udyog Vyapar Mandal said it was firm with its opposition to e-commerce unless the central government had framed a policy to regulate online shopping.
"Under the garb of online shopping, the e-commerce companies are indulging in tax evasion. While the brick-and-mortar trader pays all taxes, there is no such compliance by the e-commerce firms. We want a level playing field for traders," Mandal president Sandeep Bansal said.
A recent survey has found 63 percent of small businesses in India do not have a website. Forth percent of those surveyed believed their business was too small to warrant a website; 19 percent perceived website creation complex and technical; and 17 percent believed website creation was expensive.
The survey has been released by RedShift Research and GoDaddy, a leading technology provider to small businesses. The survey, based on a poll of 500 'very small businesses' (five workers or less), takes a look at how small businesses are starting to utilise internet and their related expectations.