E-commerce activists: The entry of traditional industries into the digital economy brings capital and hope to this area

The panel “The role of e-commerce ecosystem in the realization of the 7th development plan” was held at the celebration of e-commerce day. Sadina Abai, head of the Iran Chamber of Commerce Favai Commission; Mohammad Hossein Sajjadi Niri, Chairman of the Board of Directors of the Venture Investment Association; Mohammad Khalaj, CEO of Snap and Hamed Qanadpour, CEO of Tara platform and a member of Tehran University faculty were present in this panel.

In this meeting, Mohammad Khalaj, the CEO of SNAP, called the digital economy’s share of 10% of GDP in the next 5 years a small number and believed that this number could be more than this for the 7th development plan. Khalaj said: “Reaching this 10% is not a significant number for the next 5 years and this share should be bigger than this.”

In explaining the harms and challenges in the field of e-commerce and digital economy, Snap’s CEO also pointed to the problem of the diversity and plurality of regulators and said:

The country’s digital economy and its businesses have various and numerous regulators. Each business deals with different organizations depending on its type of activity. It seems that we have forgotten that the main custodian of this field is the Ministry of Privacy, and this ministry should advance the issues related to it.

According to him, in the field of platforms, the Ministry of Privacy must play its key and pivotal role in order to move away from regulatory diversity. It is necessary to reach the goals considered for the digital economy and to achieve the announced numbers.

Khalaj further explained that in the mention of challenges, capital attraction, capital increase, immigration and entering the stock market are generally discussed, which are also important issues, but according to him, the issue of mandatory pricing is also very important. The CEO of Snap said about this issue:

One of the characteristics of innovation is disrupting previous structures and presenting new business models, but when mandatory pricing and such frameworks are placed on it, innovation is killed and destroyed. We have to see what the world is doing in this field. We are also aware of the need for supervision, but mandatory pricing makes it difficult to achieve the goals of the digital economy.

– Mohammad Khalaj, Snap CEO

In the continuation of this panel, Mohammad Khalaj considered one of the positive events that can happen in the field of digital economy is the entry of traditional sectors of industry into the digital economy and explained:

The third ring of the digital economy The traditional sector of the industry should be added to the digital economy as a whole. We have a concept called digital transformation, where many of these traditional businesses have bought startups or created businesses of this kind by preparing a roadmap, using technology, and using creativity from their company’s resources. This is a positive thing. In order to make the cake of the digital economy bigger and to double its share in the next 5 years, we need to add these sectors and enter industries in these forms. Welcoming old and rooted businesses and the capital they bring to this area can achieve these goals.

– Mohammad Khalaj, Snap CEO

In this panel, Mohammad Hossein Sajjadiniri, the chairman of the board of directors of the Venture Investment Association, pointed out some of the economic challenges faced by businesses. According to him, the impossibility of investors exiting a business is one of the problems we are facing, and another problem is that many businesses that have the conditions to enter the stock market are not allowed to do so.

Another challenge that this Sajjadiniri points to is the lack of attracting capital for these types of businesses, and he concludes from all these challenges that businesses in the field of digital economy have a serious problem in the venture capital sector.

He further suggests the e-commerce development center or other government institutions in charge of this field to implement two suggestions to improve the state of this industry:

First, to help in the formation of institutions; That is, groups that gather together and provide an opportunity for concerns to be heard, such as the Chamber of Commerce. My second suggestion is to form bold investment institutions because in this area, compared to the volume of transactions and amounts in circulation, we have few bold investors.

– Mohammad Hossein Sajjadi-Niri, Chairman of the Board of Directors of the Venture Capital Association

According to him, we need a private equity fund under the stock market to help businesses with stock market potential enter this market. He also mentions the tax credit and says:

The tax credit is an opportunity for other industries, mining, petrochemical, machinery, marine, to create CVC funds and achieve complements to their industry. One of the best complements can be the field of digital economy and e-commerce to both help them and bring these capital industries to the field of digital economy.

Communication infrastructure should be improved

Hamed Qanadpour, the CEO of Tara platform and a member of Tehran University’s faculty, also accepted all the challenges that were raised before him, and pointed to the issue of providing internet infrastructure and said: “The discussion of internet and communication infrastructure is another requirement of the field of e-commerce and The digital economy is also in Mr. Sattar Hashemi’s plans and it should be improved.”

He believes that the law of the 7th development plan has paid attention to technology, but according to him, there is no spirit of technology in the field of business in this program. Qanadpour explains this issue as follows:

The point that should be in the law of the seventh development plan is the point that the spirit of technology should be added to this law. In this program, in the discussion of employment, domestic and micro jobs are emphasized; When we look at it from the point of view of technology, there will be a two-way relationship between technology and these types of businesses. It means that both technology will help businesses and these businesses will help reach the digital economy. Therefore, culture should be created in the field of entering technology and its spirit into various industries.

– Hamed Qanadpour, CEO of Tara Platform

He considers one of the effective ways to improve the state of e-commerce and digital economy in culture building, developing e-commerce literature, highlighting the role of interdisciplinary fields in universities and industries, highlighting successful experiences in the field of e-commerce and building national brands.

The readiness of industries to participate in digital processes tends to be positive

Sadina Abai, the head of the Favai Commission of the Iran Chamber of Commerce, also addressed the obstacles in the way of attracting capital for businesses in this panel and explained: “When we cannot attract investment well, we will not attract domestic and foreign capital, and as a result, we will not be able to improve the situation. Expect good things in the field of e-commerce. He explains the reason for not attracting capital, both domestic and foreign, as follows:

Internal obstacles and filters prevent the attraction of domestic capital, and foreign investment is carried out in conditions where the foreign investor’s concerns are met at least. Issues such as capital outflow, capital gains, capital guarantee by the government, etc. must be provided so that foreign investors can invest in our country.

Despite all these problems, Abayi points to the efforts of the private sector to improve its business situation and says: “On the one hand, the private sector tries to introduce itself at the international level by attending exhibitions, and on the other hand, it tries to communicate with investors. . In the Chamber of Commerce, we are also trying to advance this issue. Of course, political and international tensions have an impact on all these matters and create changes.”

The head of the Favai Commission of the Iranian Chamber of Commerce also explains about the entry of traditional industries into the digital economy as follows: “The willingness of industries to participate in digital processes tends to the positive side. Our industries had traditional views, but now, as a result of various efforts in these years, industries are ready to enter this valley. Raising awareness in this area will have a positive role in changing the attitude of traditional industries, which will lead to the entry of capital into the field of e-commerce and digital economy.