Digital commerce: A progress alternative for Greece

At a look

• Greek companies are much less productive than their EU friends. Greece’s hole in productiveness with Europe is way wider among the many smallest companies (3.8 instances) than among the many largest companies (1.4 instances). Inside Greece, the productiveness hole between bigger and smaller companies is way wider (5.8 instances) than the respective hole inside Europe (2.0 instances). Digital-driven progress is crucial to closing this hole.
• Regardless of progress up to now few years, Greece nonetheless has important room to develop in its digitization journey. The nation ranks twenty second in digitization among the many EU-27, as measured by the Digital Macroeconomic Index.
• Greece has not too long ago improved its efficiency in key digitization indicators. The digitization of interactions between the general public and the state reveals that public establishments are step by step digitizing, and the nation’s important deployment of EU-provided funds in assist of digital targets demonstrates a powerful momentum. Greece seems properly positioned to additional enhance its digital standing.
• The financial sectors that may profit most from elevated digital commerce maturity are retail and hospitality. Assuming the suitable levers are pulled, Greece might enhance the gross worth added (GVA) of the retail and hospitality sectors by greater than 20 % every—roughly €1.6 billion and €3.0 billion, respectively.
• Retail and hospitality companies that undertake digital-commerce options might materially enhance their profitability. Shifting from having no on-line presence to an intermediate stage of e-commerce maturity might enhance the EBIT margin of a small retail or hospitality enterprise by as much as 11 proportion factors and 13 proportion factors respectively. The potential enhance relies on the enterprise’s beginning digital maturity.
• Realizing this chance would require coordinated motion by corporations, the state, and society. Efforts might be thought-about inside 4 areas: constructing expertise, constructing belief, constructing consciousness, and offering incentives for and capturing digital commerce’s potential to drive progress.

Digital commerce is extensively thought-about a catalyst for financial improvement. Many nations world wide are experiencing its advantages, together with larger shopper satisfaction, elevated productiveness, and stronger financial progress. In Greece, digital commerce is rising however uptake nonetheless lags behind peer nations in Europe and elsewhere.

Within the wake of the monetary and COVID-19 crises, evaluation reveals the Greek financial system has rebounded and the nation’s financial outlook seems to be stronger, as evidenced by a sequence of upgrades to authorities bond rankings. And since digital commerce might be a central contributor to Greece’s financial progress, we performed a examine to discover how Greek corporations and the state might assist spur its improvement.

Our examine signifies that the event of digital commerce has the potential to assist particular sectors develop their gross worth added (GVA) by greater than 20 %. As indicated by latest enhancements within the nation’s digital maturity, Greek corporations and public establishments have the capability to develop the mandatory instruments and use digital commerce to create an engine for financial progress.

We start this report with a overview of Greece’s competitiveness and digital maturity within the European context. We then define three digitization levers (digitizing commerce, digitizing belongings, and digitizing work) and assess how they might be deployed to energy financial progress. Following this, we analyze Greece’s competitiveness relative to its European friends at a extra granular stage, inspecting the construction and digital commerce maturity of retail and hospitality, that are the financial sectors that digital commerce can finest function a catalyst for progress (Exhibit 1).

Narrowing our focus, we illustrate how growing the maturity of digital commerce in these two sectors—retail and hospitality—can generate important worth for the financial system. Our evaluation signifies that shifting to the goal digital-commerce maturity stage might generate €1.6 billion in retail (Exhibit 2) and €3.0 billion in hospitality (Exhibit 3).

Lastly, we determine finest practices and methods wherein institutional stakeholders and the state might assist set up a supportive surroundings for the event of digital commerce and the digital financial system general.