TEHRAN, Iran, April.1
Trend:
Iranian government is to increase online businesses amid social distancing plan, said the head of Iran E-Commerce Union.
Reza Olfatnasab has discussed the latest negotiations to increase capacities in an interview with Trend.
"It has been decided that the government and the Ministry of Industry, Mine and Trade would help traditional businesses to join cyber space," he said.
"The issue was discussed at the meeting with Deputy Minister of Industry, Mine and Trade on March 31. These businesses either will be directly introduced to online commerce and display their products for sale or use e-commerce startups as their sale platform so that other businesses can benefit as well," Olfatnasab added.
"The newly launched Shop from Home campaign seeks to encourage people to remain at home and shop online. Iran's E-Commerce Union, Ministry of Information, Communication and Technology, Iran Broadcasting Company and Ministry of Industry, Mine and Trade have promoted the campaign," he said.
"As the first step, it is necessary to prevent people from leaving home, and the second step is helping businesses that are damaged by closure," Olfatnasab added.
He went on to say that online businesses and e-commerce did not have good profit in last Iranian year (started March 20, 2019) especially during internet shuts down in November.
"Some think online businesses have improved, but this is true only for some e-commerce startups that provide fast moving consumer goods, while online tourism and food delivery businesses have sharply dropped, and the coronavirus has made the situation even worse," he added.
"It is estimated that around 150,000 people were active in online businesses, although the figure should be reviewed in next two months, as there is a possibility of downsizing," Olfatnasab said.
"If the current situation continues, it's possible that many online businesses would be eliminated. The companies that do not have working capital would have difficult condition. The supply chain would face problem, as people's purchase power is low and seasonal workers are unemployed," he added.
"The government has offered packages for all businesses. The discussion is underway to attract traditional businesses and help offline businesses to grow. The proposed measures include bank advances and reducing taxes," he said referring to government plan to help online businesses damaged by coronavirus.