Gross Merchandise Value, or GMV, is the term e-commerce companies love to hate. And tout. Put simply, it measures the total “throughput” of sales a platform manages during a given period, like a year. Flipkart’s GMV last year was around $15 billion. GeM wants to do $13 billion this year.
Wait, who??
GeM, or Government e-Marketplace, the centralised portal launched by the Indian government in 2016. It’s done a cumulative GMV of $19 billion since. And for the current year, it wants to triple last year’s GMV and aim for $13 billion.
If you’re thinking why a government would run an e-marketplace, it’s because it makes sense. KONEPS, South Korea’s e-procurement system, is estimated to save the country over $8 billion every year!
The transparency, efficiencies of scale, and speed that a centralized digital marketplace can bring about in a country with massive inefficiencies in government spending is ridiculous. On paper, at least.
In reality, it's an incredibly complex undertaking fraught with red-tape, divisions of power and vested interests. Mumbai Multimedia Studio's Team brings you the article of GeM’s ambitions and challenges from the inside #yusufbhandarkar #digitalmarketing www.multimediastudio.net
