Marketing to MSMEs - Forbes India article authored by Dr K Rajeshwari
Recently I had the privilege of handling a daylong session on marketing and brand building for a very young financial services company VERITAS- based out of India.. It was extremely gratifying to see the youth exuberance addressing the goldmine opportunity that is present in this sector.. This article provides a peek into some aspects of marketing to that segment.
The MSME sector in India is very big. Based on the last census conducted, the figures projected by the Ministry of MSME for the year 2011-12 are 44.7 million units, employing 101 million people with gross output exceeding Rs. 18.3 trillion. Out of this, the registered MSME segment comprises of just 1.54 million units! And in many cases (especially for the unregistered/ unorganised), it is not easy to borrow from banks as the banking institutions have a set of strict rules, especially when lending to smaller unorganized players, MSMEs. While we know of a long list of defaulters in the borrowing category of organized/ big clients, the same cannot be said about the medium/ smaller borrowers. Since these may be relatively unknown set of individuals/ entities, their default behavior is probably not as visible as the rest.
However given the size of the unorganized MSMEs in India, how can financial lending organisations make themselves more attractive? There is definitely a huge need to be fulfilled but the offering has to cater to that need. Muthoot financial group has done this somewhat successfully – and there may be lessons for other players to follow. Click here to read the complete article