This Issue’s Topical Story

E-Commerce Platforms Help SMEs Explore Business Opportunities

In recent years, the rapid rise of E-Commerce platforms at home and abroad is bringing changes to the businesses of small and medium-sized enterprises (SMEs). According to “Global Ecommerce 2019” published by research institution eMarketer, global E-Commerce retail sales have gradually increased from US$2.3 trillion in 2017 to US$3.5 trillion in 2019. The total of E-Commerce retail sales has risen from 10.4% to 14.1% during the same period.

As the total number of cases of Novel coronavirus pneumonia continues to rise globally, Macao, as an export-orientated economy is inevitably affected by the impact of the pandemic in various social economic activities. The shortcomings in the city’s economic development have shown themselves clearly, prompting all sectors of society to respond hastily. It is generally realised that SMEs in Macao have much room to further expand their use of E-Commerce by the application of technology.

In order to reduce the risk of infection in crowds, ensure the safety of life and health and overcome business challenges caused by the pandemic, new trade and business models have emerged in response to the pandemic, such as home offices, online exhibitions, online shopping, video live streaming, online meetings, online transactions, distance learning, online education and online medical diagnosis. Following the idea to promote “internet-based, data-based, smart technologies and digitalisation”, a new rise of E-Commerce is entering all walks of life, encouraging all sectors to embrace the new development directions such as zero-touch services, full online operations and smart operations. All these aspects have broadened the horizons of Macao SMEs’ to achieve an innovative development on E-Commerce, bringing in new ideas and opening up channels for applications. As the current business situation is relatively quiet under the pandemic, SMEs can make full use of this period to take active action of “going out” and “bringing in” through renowned Mainland China and international E-Commerce platforms. With this support, SMEs can improve their marketing effectiveness and contact prospective buyers and suppliers to expand their businesses.

E-Commerce platforms help SMEs to expand their business networks

The “2020 Mainland-Macao Business Associations Joint Conference cum Forum on Exchanges and Co-operation between Mainland and Macao Enterprises” was held online

The “2020 Mainland-Macao Business Associations Joint Conference cum Forum on Exchanges and Co-operation between Mainland and Macao Enterprises” was held online

“SME Special Webinars”

The implication of E-Commerce development to SMEs

ITC (International Trade Centre) is the executive agency of the United Nations Development Programme (UNDP) jointly established by the United Nations Conference on Trade and Development (UNCTAD) and the World Trade Organisation (WTO). It is directly responsible for the implementation and development of trade promotion projects for developing countries and transition economies funded by UNDP. An ITC report points out that the rise of E-Commerce platforms is conducive to SMEs’ business expansion. E-Commerce platforms can completely free many SME’s business of the restrictions of time, space and geographical boundaries. Therefore, in terms of sales, E-Commerce platforms can help SMEs to expand their business networks. In terms of financing, digital platforms can help solve SMEs’ financing difficulties. According to the World Bank, the online record of SMEs’ business through E-Commerce platforms, such as sales data, user reviews, is helpful to financial institutions allowing them to better understand and evaluate SMEs’ operating conditions and credit levels, thereby assisting more SMEs to successfully obtain financing. In addition, in terms of publicity, digital platforms provide SMEs with more diverse publicity channels. Large-scale E-Commerce platforms usually organise large promotion activities on a regular basis, enabling SMEs’ on the platform to take the opportunity to promote their products. Compared with traditional publicity channels such as TV commercials and newspapers advertisements, the cost of the new channels is lower while and the result is achieved more efficiently and effectively.

“E-Commerce Promotion Incentive Measures”

In order to promote a moderate diversified and sustainable economic development in Macao, support SMEs to make good use of the E-Commerce platform to develop and expand their business and to achieve a transformation and upgrade, Macao Trade and Investment Promotion Institute (IPIM)and other government departments have held several seminars and workshops on the promotion and application of E-Commerce, inviting industry professionals and experts from home and abroad to share their experiences and demonstrate, encourage and urge SMEs to deepen their knowledge and understanding of E-Commerce platforms and E-Commerce, so as to actively apply their knowledge to actual business activities.

Aimed at E-Business, IPIM has put forward “E-Commerce Promotion Incentive Measures” to provide corresponding subsidies to the enterprises of Macao E-Commerce “Operators or Websites” accredited by IPIM, assisting enterprises to use E-Commerce to promote their own brands and products, gaining wide-ranging publicity, enhancing comprehensive competitiveness and exploring business opportunities.

E-Commerce platforms are widely used to overcome business challenges caused by the pandemic