intelligent

Enhanced competitiveness : Digital tools and platforms enable SMEs to compete with larger firms by providing access to market information , e-commerce platforms and digital marketing tools . This level playing field fosters innovation and competitiveness .

The OECD highlights that a 1 % increase in digital connectivity can reduce international trade costs by 0.1 %, significantly benefitting SMEs by making international trade more affordable .

Challenges and solutions

While digital trade presents numerous opportunities , SMEs in less developed countries face several challenges that need addressing :

Digital infrastructure : Limited access to reliable Internet and digital tools can hinder SMEs ’ ability to engage in digital trade . Governments and international organisations must invest in digital infrastructure to bridge this gap .

Regulatory barriers : Complex and restrictive regulations can impede digital trade . Simplifying trade regulations and promoting international cooperation can help create a more conducive environment for digital commerce .

Digital skills : Lack of digital literacy and skills among SME owners and employees can be a significant barrier . Training programmes and educational initiatives are crucial to equip SMEs with the necessary digital skills .

Case study

Several SMEs in less developed countries have successfully leveraged digital trade to expand their businesses :

A small fashion brand in Kenya that has successfully utilised online marketplaces to sell its products internationally is Thrift Social Nairobi . This fashion collective leverages social media platforms like Instagram and Facebook to reach global audiences . By showcasing unique and culturally rich fashion items , Thrift Social Nairobi has managed to attract international customers , effectively utilising digital tools to enhance visibility and sales .

How Thrift Social Nairobi succeeded

Utilising social media : Thrift Social Nairobi uses YouTube , Instagram and Facebook Shops to display its products , allowing it to reach a broader audience without the need for a physical store . These platforms offer user-friendly interfaces and integration with e-commerce functionalities , which are essential for small businesses aiming to go global .

Optimising product listings : The brand creates compelling product descriptions and high-quality images to attract potential buyers . They focus on highlighting the unique features and cultural significance of their products , which appeals to an international market looking for distinctive fashion items .

Engaging with customers : Through active engagement on social media , Thrift Social Nairobi maintains strong relationships with its customers . This includes responding promptly to enquiries , showcasing customer testimonials and regularly updating their followers with new product launches and behind-the-scenes content .

Leveraging online marketplaces : Besides social media , platforms like Jumia and Shopify have been pivotal . These e-commerce platforms provide the necessary infrastructure for listing products , managing orders and handling payments , making it easier for small businesses to scale up operations .

Lessons for other SMEs

• Invest in digital skills : Training on digital marketing and e-commerce tools is crucial for maximising online sales

• Choose the right platforms : Depending on the target audience , selecting the appropriate online marketplaces can make a significant difference

• Consistency and quality : Regular updates and maintaining high standards for product

Karl Miville de Chêne , Partner at Contacts Monde

TRADITIONAL TRADE BARRIERS SUCH AS HIGH TARIFFS , COMPLEX REGULATIONS AND LOGISTICAL CHALLENGES ARE MITIGATED THROUGH DIGITAL TRADE .