New MOP2 million e-commerce subsidy scheme for retail SMEs

Retail and wholesale Macau SMEs will be able to apply for a new subsidy to cover their expenses for promotion on B2C platforms, the Executive Director of the Macao Trade and Investment Promotion Institute (IPIM), Gloria Batalha Ung, stated in a press conference yesterday. The “E-Commerce Promotion (B2C) Incentives Scheme” will start accepting applications on June 6, and will be open until the end of the year for an experimental period, with the IPIM President hoping that the programme will “subsidise 100 companies with a MOP2 million (US$249,965) budget for an experimental period this year until December 31.”
“We hope to see how successful it will be; if we receive more than 100 applications the budget could be reevaluated, but if we don’t see a lot of participation we will have to reevaluate the programme’s usefulness,” the IPIM Executive Director stated.
Straight to the client
The IPIM sees the incentive as a way of promoting the development of e-commerce in the city and encouraging local SMEs to use new online promotional and distribution channels, such as Business to Client (B2C) platforms.
“Businesses are utilising B2C e-commerce platforms as a channel for marketing and selling their products. This not only brings extra revenue on their retail sales, but also helps suppliers of quality products get exposure on such platforms,” Ms. Ung said.
The new scheme will subsidise successful applicants for annual fees or value added service fees incurred during the use of a B2C platform, to a maximum of 70 per cent of the related expenses and an annual accumulated total of MOP20,000, the Senior Manager of the Macau Business Support Centre (MBSC), Antonio Lei Chi Wai, announced.
Intended applicants, which can be individual entrepreneurs or companies, can only be awarded the incentive one time during a fiscal year apropos the manufacturing, trade, retail or wholesale products sectors. The scheme is also only eligible for businesses registered with the Macao Financial Services Bureau (DSF), with at least 50 per cent of shareholders being local residents, or wholly owned local enterprises, with possible exceptions made for companies producing products in the territory.
“It’s a three-part relationship; it has to be a company from Macau, they come to IPIM to ask for the incentive so that they can put their products on a third party B2C company – and we pay the incentive to place on these platforms to sell to China and the rest of the world,” the MBSC Senior Manager stated.
The initiative follows the E-Commerce Promotion Incentive Measures established in 2009 which provided individual subsidies of up to MOP30,000 for local companies if they promoted their business on online platforms operated by ‘IPIM Eligible E-commerce operators or websites’, which include Alibaba Hong Kong, Ebay Hong Kong and four other operators, Business Daily previously reported.
“The 2009 incentive was focused on B2B platforms, for selling to other companies. Today’s scheme focuses on platforms where the products are sold to consumers directly. Before, we wanted to boost trade and now we want to boost promotion to sell directly to clients,” Mr. Antonio stated.
Give me a platform
According to IPIM a definitive list of B2C platforms applicable to the scheme will only be revealed on the day the scheme takes effect, with “invitations being sent to platforms based in Macau and China” but with any international platform allowed after being approved by the IPIM.
“We will consider their operation, knowledge and how the platform is relevant to the local business; it will then be considered by our IPIM recognising process. After that the SMEs can put the products there and receive our subsidy. We welcome platforms from Macau, China and anywhere in the world, but the eligible SMEs have to be companies of local origin or organised by local Macau residents,” the MSBC representative told reporters.
Once the application is accepted the companies will have to present expenses incurred after promoting their products on the B2C platforms to IPIM within a 90-day period, and can submit expenses from multiple platforms as long as the application is made until the end of the year, and for an annual amount not surpassing the established MOP20,000 limit.
“First on B2B, and now to B2C. It’s the ideal platform for SMEs, and has become extremely popular in Asia, specially in China.
“We have sent our invitation to the platforms based in Macau and China.
After we process their eligibility we will consider if we will add them to the list. It will be a trial period until December 21 – we hope to help the SMEs make full use of this e-commerce incentive system. We hope to subsidise 100 companies with a MOP2 million [budget] this year,” the MSBC Senior Manager stated.
The IPIM will also organise a Cross Border E-Commerce Forum and Matching Session at Macau Tower on July 8, with B2C platform representatives from Mainland China, while organising practical workshops and training for local SMEs on E-Commerce, the press conference announced.