A Structural Shift in the Market Preferences

Dhaar Mehak M

Tabeen J Wali

The global eCommerce market was expected to be worth a total of $5.7 trillion by the end of 2022. That figure is estimated to grow over the next few years; exhibiting the fact that borderless eCommerce is becoming a profitable option for online retailers. It is giving a market space to one and all with a potential or product to sell. Only two years ago, 17.8% of sales globally were made from online purchases. That number is again expected to reach 20.8% by the end of 2023; a 2 percentage point increase in eCommerce market share. This growth is expected to continue, reaching 23% by 2025, translating to an increase of 5.2 percentage points in just five years.

Economic projections and forecasts predict the global retail sales growth to rise even further and take up more retail market share. According to research completed by eMarketer and Statista, online retail sales will reach $6.51 trillion by 2023, with eCommerce websites taking up 22.3% of total retail sales. Although retail has had it tough since 2020, every national market covered by eMarketer saw double-digit eCommerce growth. The trend continues globally: Latin America (including Peru, Brazil, Argentina, Chile, Colombia, and Mexico) saw $104 billion in eCommerce sales in 2022, up 22.4% from $85 billion in 2021. The UK is forecasted to continuously increase by $85.7 billion (+42.88%) within the next years.

China continues to lead the global eCommerce market, accounting for 46.3% of all retail eCommerce sales worldwide, with total online sales just over the $2.8 trillion mark in 2022. It also has the world’s most digital buyers, 842.1 million, representing 39.4% of the global total. The US eCommerce market is forecasted to reach more than $904.9 billion in 2022, a little over a third of China’s. After China and the US, the third-largest eCommerce market is the United Kingdom, taking up 4.8% of the retail eCommerce sales share. The UK is followed by Japan (3%) and South Korea (2.5%). The top five eCommerce markets haven’t changed since 2018. Trends from eMarketer suggest that these markets will stay in the top five until 2025.

While the whole world has been witnessing the structural transformation and shift in terms of market transformations from retailing to online shopping, the Indian economy has been a part of the process. In light of the same, the Jammu and Kashmir economy has had an equal and equally growing participation in the same. The advent of the internet and the arrival of eCommerce technology in the lives of average Kashmiris have changed the shopping preferences and experiences of the locals. People no longer have to battle issues like vehicular traffic on the roads or wait in queues for long hours. Accredited to the growth of eCommerce technology, locals have been empowered to shop anywhere-anytime just at the click of a button.

However, in the recent past, there was no (or very limited) concept of eCommerce in Kashmir. Smartphone availability to the general public was rare. The masses were barely aware about the internet facilities and global communication channels. There was no idea of online shopping, online transactions, etc. With time and the availability of the internet along with the growing mobile phone penetration, eCommerce made its presence felt in the valley. However, due to slower internet connection issues like 2G and lack of awareness, people initially had apprehensions and thus were afraid of buying things online.

Tracing the roots and history of online shopping awareness in J&K, it dates back to the year 2008 when the mobile internet was making its headway into the valley. People were gaining affordable and available access to wireless internet. It was around the same time that after bearing a lot of hardships with sorting out the supply chains Flipkart became operational and function in the region. the initial years were tough and hard but the company stood steadfast. It took some time for Flipkart to cut through lots of hurdles alone and get to success. Being the only player in the online market in the region for quite some time it was a big deal to keep surviving and floating. But the outcomes were a success.

Steadily as people gain access to quality internet services and advanced smartphone technology the word spread. It was observed that doorstep delivery was actually a reality. At the same time, the quality of the delivery matched the promises of the website. The trust factor got built. Witnessing optimism within the J&K market, other companies like Amazon, SnapDeal, and other local online stores, etc., started jumping in to tap into the growing eCommerce market. The consumers got the opportunity of choosing from a wide range of products. Not only that, discounts and sales from time to time offer big benefits to consumers.

All these factors have been contributing towards a structural market shift. People from across J&K have been moving from in-person retail shopping to online shopping. While the consumers in the region have surely benefitted both in terms of utility/satisfaction and profit maximization, the retailers have been losing.

The J&K economy is predominantly characterized as a consumer economy. The characteristics of being a producer and self-sufficient economy have been limited and rather absent for a long time. It is the retailer of J&K, who has been at the losing end on account of the growth of the online markets. Retailing has been one of the most common business ventures of people across the region of J&K. Setting up of the shops and selling various items has been a known venture. People for generations have been relying on this activity. Lately, the structural change is challenging this segment of J&K businessmen and the immediate solution visible is evolution. These businessmen, particularly retailers, need to adjust to the changing market and make themselves competitive enough to compete with global online sellers. The only other option is to let the business supper, deteriorate and shut down.

The authors are affiliated with the Department of Economics, Islamic University of Science and Technology & can be reached at dhaarmehak@gmail.com and tabeen45@gmail.com

Need to impart healthy and active lifestyle among youngsters

Dr Taizeena Khan

Dr Taizeena Khan

World Health Organisation (WHO) defines health as complete physical, mental and social well-being and not merely the absence of disease or infirmity. At an early stage children not only need love and care, but also a proper road map for a healthy lifestyle. This road map should be devised by keeping in mind all the parameters of health and wellness. It should not only focus on the physical and mental health of our children but also on the social aspects of it. To achieve this goal we need to enhance the skills of parents. The health and wellness plan from the birth of a child will decide the future of our coming generations.

In recent years of my clinical practice as a physiotherapist, I have noticed more youngsters coming to me with musculoskeletal disorders. This abrupt rise of my younger generation patients, their lack of physical activity, unnecessary stress and lack of social set-up that could provide them with a platform to practice a healthy lifestyle at an early stage urged me to choose this topic today.

In recent years children as young as 12-18 years old have been coming to me with musculoskeletal disorders. While consulting/counselling these youngsters I have come to the conclusion that there is not only a lack of physical activities but also a lot of avoidable stress leading to the unhealthy choice of lifestyle in this age group these days.

To a large extent, I believe that technology has also played a great role in this. No doubt that technology has become an integral component of our daily lives. Technology has, to a great extent, made our lives easier but at the same time, it has done that at the cost of our physical, mental and our social lives. This all begins when we as a parent make a choice of offering a smartphone to our 6-month-old so that we can feed him. Children are easily attracted to new toys and a smartphone with so many features is no doubt the best form of toy for them. It has a cartoon that speaks to them anytime they hit the button. The best fictional stories they could ever watch and everything they could get their hands on. Meanwhile, we don’t realize the cost of bringing this technology to them at this early stage of their life. We happily make our child technology-dependent too early for our own convenience, as it is not only saving us time in this fast-moving world, but we also think that we are making our child happy.

Physical inactivity in children is becoming a growing problem day by day and has been considered an epidemic according to research.

WHO reports that about 70% of boys and up to 88% of girls under the age of 10 don’t get the physical activity they need for their age.

Think back to the times when we were growing up as kids. How did we spend our time in school as well as at home? There were no computers, no smartphones, and almost no technology. There was a good balance between our books, TV time and playing games. We were encouraged to go out and play. We had more real friends than social media friends whom we could talk and discuss our stress with. We also used to spend a lot of time on our vacation with our extended family members, especially with our grandparents. We used to listen to their stories, the folk stories, their real-life experiences etc. I remember going on for long walks with my grandfather and on the way bothering him with lots of inquisitive questions about the trees, the birds, or whatever we saw on our way. This helped me appreciate nature, love animals and observe things keenly.

But times have changed. Children today are hardly seen playing after school or having a good social life. Pressure from parents to perform better in academics, more and more access to technology and lack of physical activity is leading to overall physical, mental and social problems in their lives.

This sedentary lifestyle arising due to various problems discussed above is the leading cause of childhood obesity, hypertension, cardiac problems juvenile diabetes, anxiety, aggression, depression and other behavioural changes and musculoskeletal disorders in children. Delayed growth and development in infants and toddlers are also seen due to changing patterns of raising our children and more and more technology taking over our burdens. In recent years, more infants and toddlers are facing delayed speech and learning disabilities.

Investing time and effort in early childhood development starting from infancy is pertinent to stop this epidemic and give our children the best life. Plan a proper balanced healthy lifestyle program for your child’s health and wellness.

Here are some tips to lay a foundation for the health and well-being of our children whose benefits last a lifetime.

·  Do not introduce technology to your children at a very early age.

·  Instead introduce games which stimulate their brains, e.g. educational and learning toys such as building blocks, numbers, shapes, colours etc.

·  Spend more and more time with them while they are still in their infancy. Read a storybook for them, this encourages them to read and write.

·   Feed them while they are observing nature and not offering them a smartphone, this helps them enjoy their food and develop their taste buds better.

·   Encourage them to feed themselves as soon as you think they are ready for it.

·   Encourage them to do small independent activities e.g. feeding themselves, combing, brushing, tying shoe laces, etc. This will not only help them stay physically fit but also independent.

·   Introducing a healthy balanced diet plan and avoiding junk food is imperative.

·   Regularize the feeding and sleeping time.

·   Encourage going to bed early and do not give them access to technology at bedtime.

·   Limit the technology, TV and video game time, e.g. you can allow technology time which includes any form of technology only 1-2 hours a day.

·   Encourage them to spend more time playing games with friends, and extended family members, especially grandparents.

·   You can also select a day to play with your kids e.g. weekends, this will help you bond with your kids and also help you and your kids stay physically fit.

·  Encourage them to spend more time playing outdoors.

·  Encourage them to spend time with grandparents, let them listen to their real-life experiences and learn from them, and encourage physical activity as much as possible.

·  Bond with your kids. Listen to them with open mind and heart. Do not put pressure on them to achieve academic or any other goals in life, instead encourage them to do well in life by giving them all the support they need.

·  Last but not least be a practical example for your own kids. Practice a healthy lifestyle and they will follow you.

The author is a physiotherapist. She has done BPT from Bangalore, PGDMS from London, MBA from USA, MIAP. Besides, she has fellowships in Geriatric Rehabilitation, Pediatric Rehabilitation and is a certified women’s health exercise expert. She can be reached at drtaizeenkhanphysio@gmail.com 

Mohmad Iqbal Marazi

                Iqbal Marazi

MSME sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades. It contributes significantly to the economic and social development of the country. But, the sector was among the most affected sections during the COVID19 pandemic.

It has been reported that lockdown induced the closing of thousands of MSMEs in the country, despite the government of India’s Rs 20 lakh crore covid response package. According to a recent report by Small Industries Development Bank Of India(SIDBI), two-thirds of MSME’s in India were shut for a period of three months or more in FY2021 and over half of all MSMEs saw a decline of 25 percent in revenue.

WHAT ARE MSMEs

MSMEs are micro, small and medium enterprises categorised on the basis of investment in plant and machinery and the annual turnover in accordance with the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006. MSMEs in India have evolved considerably since independence. From being referred to merely as the small-scale industries (SSI) sector in 1960s and 70s, the MSME sector has progressed in scale and in the scope of business activities over the years. MSME consists of both traditional and modern small industries in India. Small industries are divided into eight subgroups: Handlooms, Handicrafts, Sericulture, Khadi And Village Industries, Small Scale Industries and Power looms.

 WHY ARE MSMEs SIGNIFICANT FOR INDIA’s DEVELOPMENT

1) Acting as engines of entrepreneurship: The indigenous skills and grassroots innovations can be channelled into MSME business ideas as they require very limited capital investment, are low risk and are not bureaucratically tedious.

2) Completing the economic supply chain: MSMEs are complimentary to large Industries as ancillary units and form an integral part of the value chain by filling the localised gaps.

3) Equitably distributing the opportunities of development: MSME units provide source of income, in wide range of non- agricultural activities and provide employment opportunities in rural areas, especially for the non-traditional artisans and weaker sections of the society.

4) Encouraging inclusive growth via employment generation: MSME are the second largest employers of human resources, after agriculture. They are, therefore considered to be more labour-intensive and less capital-intensive. They provide gainful employment to marginalised sections.

5) Growing role in technology-intensive and rapidly emerging sectors: Indian MSME’s are not limited to small business only but are rapidly increasing their presence, like Financial Technology, Defence, Manufacturing and Space among others.

6) Aiding achievement of sustainable development goals: MSMEs produce products using locally available resources, both material and labour. These products and processes help in achievement of SDGs both directly and indirectly. Some of SDGs are as:

SDG1 (End Poverty) Alleviating poverty through micro franchising

SDG3 (Good health and wellbeing)

SDG6 (Sanitation for all)

SDG7 (Energy for all)

SDG10 (Reduced Inequalities)

SDG14 (Life below water)

India’s MSME sector contributes almost 30% of the GDP. Almost half of the exports come from micro, small and medium enterprises. In India around 20% of micro, small and medium enterprises are micro enterprises. More than half of micro, small and medium enterprises are owned by general category entrepreneurs.

RECENT INITIATIVES TAKEN BY GOVERNMENT OF INDIA FOR MSMEs:

1) Improvement in overall performance and quality. Raising and Accelerating MSME Performance (RAMP) is a world bank assisted central sector scheme. The revamped Zero Defect Zero Effect (ZED) Certification scheme.

2)Access to Finance, Collateral free loan 59-minute loan portal.

3) Access to markets, mandating PSEs to compulsorily procure 25% of their total purchases from MSME’s, International Cooperation Scheme, Marketing Assistance Scheme.

4) Technology Upgradation, Setting up 15 new and upgrading 18 existing tool rooms.

5) Ease of doing business, randomised inspection through a computerized random allotment, reduced environment clearance and certification burden.

The author is a PG student of economics at HNB Garhwal Central University Uttrakhand. He can be reached at iqbalmarazi999@gmail.com