INTRODUCING E-COMMERCE TO SMES IN THE WESTERN BALKANS
June 2021 — E-commerce is the future for Small and Medium Sized Businesses (SMEs) across the globe to sell their products. However, there are multiple barriers to small firms accessing this market, including reluctance to use credit cards for online shopping, and lack of awareness and sophistication of online options. COVID-19 accelerated the need for firms to add digitization to their expansion strategies, due to movement restrictions and limited hours of retail stores and malls.
The USAID Economic Development, Governance, and Enterprise Growth (EDGE) Project responded to the need to expand e-commerce capabilities to Western Balkan SMEs. EDGE awarded a grant to the North Macedonia Association of Information Technology (MASIT) that provided 36 companies from North Macedonia, Kosovo, and Serbia with an opportunity to create digital transformation strategies. EDGE also supported nine companies, through co-financing between EDGE and the firms, who were able to develop websites and e-commerce solutions to further support their digital transformation, increasing sales, and improving overall business sophistication.
Astibo Fashion Group (AFG) from Stip, North Macedonia is both a B2B agent among foreign and domestic brands and apparel producers and have their own brand, specializing in women’s apparel, and children and men’s shirts and trousers. Founded in 2008, AFG has more than 150 clients from different countries (UK, Norway, Denmark, France, Belgium, Germany, USA). They are well known as a cut, make, trim (CMT) apparel exporting company, AFG lacks visibility as a brand in their own right. The AFG brand, releases yearly collections in their local boutique shop in Stip. AFG launched a website and online shop in March 2021 with support from MASIT through USAID EDGE. This has allowed them to expand their brand reach across North Macedonia.
“As the whole course of life changed with the COVID-19 pandemic so did our sales in the boutique. Before the online shop, our products were only available if customers visited our boutique in Stip,” said Natasha Tuneva, Head of the HR department at AFG. She continues: “Since the beginning we knew that the EDGE Project and MASIT were perfect for us. Our sales continued to grow. Also, having the website made shopping for everyone easier and safer in these hard times of the pandemic. Just by a click we have a sale.”
Another SME that started their e-commerce endeavor with EDGE assistance is the social enterprise Radanska Ruža from Lebane, Serbia. Radanska Ruža makes products that are a combination of delicious and healthy fruits and vegetables harvested on the slopes of Radan mountain, and the centuries-old tradition of housewives making local specialties, such as ajvar, pindzur and jam. Fruits and vegetables are selected and processed by hand, on ordinary stoves in small pots, in a large kitchen. According to tradition and old recipes, these processed products are pasteurized, made without preservatives and other additives, and packed in glass packaging.
“Through this project we developed a new look and functionalities for our website. That helped us make our products more visible and available for new customers. One of our team members also received training for managing the website updates and content,” said Predrag Stosic, Director of Radanska Ruža. “In the future, we plan to improve our production by expanding the range of organic products to domestic markets, and the web presentation will be extremely important in the promotion and sale of these products. Namely, a new web site will enable us to show future customers the complete production from working in the fields to the production process itself. As a result, we will be able to employ more women from marginalized groups,” notes Stosic.
Through USAID EDGE support, Kosovan wood and furniture producer ELNOR was able to develop an online sales platform for wooden chairs and tables. “We have managed to train a part of the sales staff regarding the process of online sales and post sales services so that the products arrive on time and in good condition to our customers,” says Vjosa Ukaj, Managing Director of ELNOR.
ELNOR has been able to expand their geographic reach exponentially from those nearby their factory through the sales platform. The online shopping platform will enable them to launch new products based on customers desires, and decrease barrier to purchase for customers.
Ukaj continues: “The introduction of this platform as part of sales has had a positive, direct impact in planning within the company, to develop a special department which will deal with the management, control and monitoring of the e-commerce process until the moment the product reaches the customer. Since this platform is a new way to conduct sales for our company, in the very near future we are planning to make a new investment by opening a specific department and employ qualified staff allowing us to also reach European markets, finding new business partners, and increasing exports through online orders.”
As e-commerce becomes an ever more central part of global business, EDGE — in partnership with MASIT — have given firms like Astibo Fashion Group, Radanska Ruža, and ELNOR a competitive advantage in expansion, enabling them to be more resilient firms, and expand the overall local economy through contributing to the tax base and providing employment opportunities.
