India Trade Increasingly Adopting Digital Channels

RAPAPORT… India’s gem and jewelry sector is increasingly turning to digital channels to drive business following the onset of the coronavirus pandemic, a credit agency said.

The proportion of small businesses using online methods to sell products has more than quadrupled to 55% since the beginning of Covid-19, compared with 13% before, according to a survey that India-based Crisil Ratings released last week. The agency defined small business as those with annual revenue under INR 250 million ($3.4 million).

All businesses surveyed said digital contributed about 11% to 25% of total revenue before the virus, while 45% had maintained those numbers as of November. The other 55% of respondents stated their digital contribution had increased to between 26% and 50% of total sales.

In addition, approximately 60% of businesses noted adopting digital selling helped them weather the pandemic-induced stress, and 40% said it boosted their sales. Those that had begun selling online were also more positive about their near-term business situation compared with those that had not taken that route.

Crisil conducted the survey in November. The research encompassed sales made by small businesses through online aggregators, social-media platforms and websites.

Image: An Indian woman wearing Tanishq jewelry. (Tanishq)