E-Commerce to help accessing new markets-opportunities for Manipur

Oinam Nabakishore Singh *

E-commerce refers to sale and purchase of goods and services by using electronic devices on the world-wide web. It happens through apps, web portals, electronic fund transfers/digital payments, data exchange, etc. We need not go into the technological aspects of e-commerce.

It is good enough to know that it is a medium for doing commerce between parties interested in buying or selling in a secure and reliable environment. To do business through e-commerce, one needs a smartphone or a tablet or computer having internet connection for communication with other parties.

E-commerce is categorized into Business to Consumers(B2C), business to business(B2B), business to government or government to business, consumer to consumer(C2C), etc. B2C and B2B e-commerce is included in the broad category of e-retail, which forms the largest share of e-commerce in the world.

According to "The Statistics Portal, statista.com", downloaded on 2nd August, 2018, e-retail sales as share of total retail sales in 2017 was 23.1% in China, 19.1% in UK, 9% in USA and 2.2% in India. In terms of volume and size, according to Digital Commerce 360, https://www.digitalcommerce360.com/2018/02/08/online-retail-sales-china-soar-past-1-trillion-2017/, China's retail web sales totaled 7.18 trillion yuan (US$1.149 trillion) in 2017, an increase of 32% from 5.43 billion yuan (US$869 billion) in 2016, according to China's Ministry of Commerce.

India Brand Equity Foundation, ibef.org, indicates the volume of e-commerce in India at US$39 billion in 2017, US$ 50 billion in 2018, US$ 120 billion in 2020 and US$200 billion in 2026. The compounded annual growth rate is expected to be 51%, which is highest in the world. The massive and quick penetration of internet among the young population is helping in growth of e-commerce in India.

After looking at the phenomenal growth of e-commerce in China and India, it is time to look at the space of e-commerce in Manipur. As buyers of products on e-commerce market places like Amazon.in, Flipkart, Myantra, Snapdeal, etc., Manipur is said to be the highest in the north-east.

While shopping online is convenient for the consumers in Manipur, using the e-commerce marketplace to sell our goods and services can help us in several ways. Selling goods outside the boundary of the state is like export and it brings a lot of benefits to the people involved in the production of goods, their transport and trade.

The limited market of products in Manipur can be expanded to the whole world through e-commerce. Sale of our goods to other parts of the world through e-commerce will result in higher demand, higher prices of the goods, higher earning of producers, higher volume of trade and higher income of those involved in e-commerce. It will also generate employment in logistics related activities like packing, sorting, dispatch, delivery and transportation.

We need to identify the goods and services in which Manipur enjoys strength and comparative advantage. Ours is a predominantly agricultural economy. Being mostly hill state, Manipur is, by default, an organic area can aspire to be an organic state like Sikkim.

Because of preference for organically grown vegetables, fruits, rice, pulses and livestock, poultry fed with organic feedstock, organic product are accepted as premium health food and they fetch higher prices. Manipur Chak-hao(black rice) is unique and it is called "forbidden rice" as it was reserved only for the royalty in ancient China due to its great health benefits.

It has appetizing aroma, quite distinct from aroma of other rice varieties. Gradually, people across the world have realized the value of Chak-hao now. Some traders from Manipur and outside are selling Chak-hao online and on Amazon. It is sold on amazon.in by Supreme Enterprises under brand name, Voila Black Rice from Manipur.

Naga Spice and Herbs also sells Poumai Black rice on amazon. Giskaa.com, one of the leading e-commerce start-ups, promoted by Manipuris, sells Chak-hao, products of handlooms, handicraft, traditional food items of north-east. I believe this start-up firm is getting traction as it becomes more visible to the consumers.

There are many horticultural products, which are unique and superior. For instance, Manipur pineapple is juicy and sweet. It is much better than pineapple from many other states. Recently, it was reported that one ton of Manipur pineapple was airlifted from Imphal airport to Delhi.

If apple of USA can be brought all the way to Manipur, why it is not possible to sell our pineapple to USA or Europe? There are many other herbal and aromatic products, which can be sold through e-commerce by proper branding, packaging and promotion.

How do we sell goods and services through e-commerce? The easiest and most successful approach is to use one of the existing popular e-market places like amazon.in, Flipkart, ebay, snapdeal, myantra, etc. by becoming a seller. The requirements to become a seller is given on the portals of these emarket place.

There are also stories of sellers, who started in a small way and grew to become big by selling their products on these sites. Like goods, it is possible to sell services through e-commerce. Music, movies, software, etc. are downloaded by paying the prescribed charges or price. Storage space for data is sold online.

Some movies can be seen by buying viewing right for 24 hours. Popular application software, like MS Office, ERP Tally, etc. are sold online. There is subscription of magazines, newspapers, access to contents of websites, data, etc. on payment by the customers. Possibilities are unlimited.

We have heard a lot about Chinese multinational e-commerce major, Alibaba.com, started by Jack Ma in late nineties of the last century. Its revenue in 2018 is US$40 billion. Its founder Jack Ma takes pride in helping small firms to connect among themselves to source their requirements and help in selling their products not only in China, but also across the world. By using Alibaba or any other suitable e-commerce portal, our SMEs can either buy or sell to further their business.

In Manipur, logistics is a big challenge. Cost of transportation is high in the absence of railways and dependable road transport. Because of hindrances on the road in Manipur and fear of taking consignments which may contain illegal items , transporters are reluctant to carry goods from Manipur to other states.

It is necessary to pay full attention by the law enforcing agencies to the problems faced by transporters if we want to make e-commerce from Manipur feasible. Railway project to connect Imphal to Jiribam and onwards to other cities is targeted to be complete in 2022. Freight charges are expected to come down to a small fraction of what is being paid to road transporters when railways carry freight.

Manipur has to join the mainstream of e-commerce to be benefitted from global trade and commerce. Trade is happening in all sizes and shapes. Anybody with zeal to do something can start e-commerce business with much less working capital and investment.

We are now predominantly buyers. We should also look at the possibilities of selling our products. A lot of information is available on the world-wide web to help us understand the business. There is no harm in trying something new. There may be failure at the beginning. However, success will come finally if we have the patience and commitment.

Views expressed are personal.