SMALL and medium-size enterprises (SMEs) are feeling the pressure to shake things up with their business strategies as the duty-free import threshold shoots up from US$50 to US$100.
With cheaper imports flooding the market, local businesses are staring down the barrel of some serious competition from abroad. While consumers might be thrilled about the prospect of snagging bargains, SMEs are rolling up their sleeves for the challenges ahead. Acording to one digital transformation expert, the solution lies heavily in digitalisation.
“In Jamaica we look at going digital as optional and an expense,” noted Mohan Beckford, CEO of Next Step Digital Solutions, in an interview with the Jamaica Observer. “Now, people are becoming more aware of the fact that they have to digitise to stay competitive.”
The digital expert emphasised that embracing innovation, diversifying product offerings, and leveraging digital platforms for marketing and sales are crucial for maintaining competitiveness. He also pointed out that with consumers now able to import more personal items duty-free, up to US$100, there’s a likelihood they’ll allocate more of their spending to online shopping, favouring international vendors and potentially reducing spending with local businesses.
However, he advises that before diving into digital strategies, SMEs should focus on localising or personalising their offerings. This entails emphasising quality and differentiation by showcasing the craftsmanship and uniqueness of locally made products. By tapping into their cultural significance, businesses can resonate with consumers and justify premium pricing.
“Jamaica sells. Can we reimagine just pushing the brand Jamaica and the authenticity of the products they are selling?” he asked, highlighting the potential power of embracing Jamaica’s identity and authenticity in marketing strategies.
Along with making more authentic products he urges small businesses to also address their supply chain set-up by renegotiating raw material costs so as to remain competitive locally. Once those are in motion Beckford stressed heavily that digitisation is essential, providing an online option for customers who are increasingly technologically inclined.
“Since the implementation of the new threshold I’ve had businesses from downtown Kingston call us, saying, ‘Hey, I want a website. I want to be able to showcase my products so people can purchase them,” Beckford shared with the Sunday Finance.
He stressed the growing necessity for local businesses to establish a digital presence, emphasising that technology is no longer a choice but a critical component for competitiveness in today’s business landscape. By embracing digitalisation, businesses can expand their reach beyond geographical boundaries and tap into a global customer base.
“Once you digitise your business you open doors for online shoppers, making your business more competitive in the fast-paced business environment,” he added.
Utilising e-commerce platforms empowers businesses to showcase their offerings 24/7, reaching potential customers at any hour. Additionally, targeted digital marketing campaigns tailored to specific demographics can foster personalised connections with consumers, yielding significant returns on investment.
While full-scale digitisation may pose challenges, microbusinesses can still harness the advantages of cost-effective technology solutions. Additionally, it’s recommended that SMEs expand their horizons and engage with communities discussing these advancements to better understand and unlock their potential.
“Jamaica Small Business Group is there; it’s a support ecosystem that helps small businesses leverage technology and get the benefits of their online presence. We have smemarketplaceja.com where people can go and look at, understand, and list their products — and it’s free. The tools are there, [it’s] just for people to seek those opportunities,” shared Beckford.
Source: https://www.jamaicaobserver.com/2024/04/21/navigating-duty-free-increase/
