Challenges are an MSMEs best friend because when they triumph over it, they achieve unparalleled success. A growth hack here is Strategic Collaboration! This blog post explores the transformative capability of partnerships for MSMEs, highlighting how collaborative efforts can force growth, innovation, and sustainability.
1.Pooling Resources:
FabAlley, a women’s fashion brand, and Indya, a contemporary ethnic wear brand, joined forces in terms of design expertise, manufacturing capabilities, and distribution networks; thus being able to expand their product offerings and reach a wider customer base.
Zomato and Swiggy, two leading food delivery platforms in India have pooled their resources in terms of delivery logistics and customer reach, thus being able to cater to the diverse preferences of Indian consumers and grow their market share in the food delivery segment.
2. Market Expansion:
Fabindia is a well-known Indian retail chain that specializes in handcrafted products. It has expanded its market both domestically and internationally by opening stores across India and establishing a presence in countries like the United States, the United Kingdom, and Singapore. This expansion has allowed Fabindia to reach a wider customer base and increase its sales significantly. On the other hand, BIBA is a great example of an ethnic fashion brand in India. Through a mix of offline retail outlets, e-commerce platforms, and collaborations with international retailers, BIBA has made its ethnic wear accessible to a wide range of consumers. BIBA has successfully expanded its market reach and established itself as a leading player in the Indian fashion industry.
3. Knowledge Exchange:
A leading manufacturer of solar panels and solar energy solutions in India, has collaborated with various MSMEs and startups in the renewable energy sector to exchange knowledge and expertise. Through partnerships, Tata Power Solar shares its technical know-how and best practices with smaller companies, while also learning from their innovative approaches and market insights. This knowledge exchange fosters collaboration, accelerates innovation, and contributes to the overall growth of the renewable energy ecosystem in India.
4. Innovation Acceleration:
Ather Energy, an electric vehicle (EV) manufacturer based in India, is an example of the power of innovation acceleration in driving growth and market success. Ather Energy has established a dedicated R&D center and collaborated with technology partners connecting vehicle technology and fast charging infrastructure into their smart electric scooters, enabling rapid growth in sales and market share in the competitive EV market. Meanwhile, Crispify Foods has accelerated by continuously experimenting with new recipes and processing techniques to develop unique and healthy snack options for consumers. Through innovation, Crispify Foods has expanded its product portfolio and distribution network, driving growth in revenue and market presence.
5. Strategic Alliances:
Bharti Airtel and Reliance Jio, two major telecom companies in India, entered into a strategic alliance for sharing telecom infrastructure such as mobile towers. Through this alliance, they reduce costs associated with tower installation and maintenance, optimize network coverage, and provide better service to customers in both urban and rural areas. We also have Ola and Uber, leading ride-hailing companies in India, who have formed strategic alliances with auto-rickshaw drivers, many of whom are MSMEs. Ola and Uber provide them with a platform to connect with customers, increase their earnings, and access technology-driven solutions for managing their transportation services effectively.
6. Supplier-Customer Collaborations:
Gujarat State Fertilizers & Chemicals Ltd. (GSFC), a state-owned enterprise in Gujarat, collaborates with MSMEs in the chemical and fertilizer industry through supplier-customer relationships. GSFC procures raw materials, intermediate chemicals, and services from local MSMEs to support its manufacturing operations. These collaborations not only provide a reliable market for MSMEs but also contribute to the development of a vibrant industrial ecosystem in Gujarat.
BHARAT UDYOG GAURAV (BUG) is on a Mission to create a remarkable Digital Footprint for 1 MILLION MSMEs. Join the Mission, become a BUG member by filling the form below and take your company to exponential success.
