Google Israel Country Director: "E-commerce has transformed into the lifeblood of Israel's business landscape"
Google Israel Country Director: "E-commerce has transformed into the lifeblood of Israel's business landscape"
Barak Regev also added at the Google and Calcalist e-commerce conference that "During crises, we observe a surge in demand as Israelis increasingly embrace online shopping." The Director General of the Ministry of Economy, Amnon Merhav, noted: "Through our business agency, we provide comprehensive support, including consultancy to develop strategic plans and establish online commerce capabilities."
Amnon Merhav, Director General of the Ministry of Economy, and Barak Regev, Country Director of Google Israel, discussed at the Google and Calcalist e-commerce conference on Tuesday ways in which to boost Israeli businesses amidst challenging times and sustaining a burgeoning economic environment.
"E-commerce has transformed into the lifeblood of Israel's business landscape," said Regev. "At Google, we are celebrating a decade of Shopping IL. A decade ago, only about 4% of Israel's total business turnover was online; today, it stands at 20%, with 50% of Shopping IL businesses operating solely in the digital sphere. This capability to sustain operations, whether during evacuations or reserve duties, provides essential support. On October 7th, at Shopping IL, we initiated efforts to assist businesses and reservists, accelerating their online presence. Over the past decade, we've expanded from 150 businesses to 3,400 active enterprises on the platform. We conduct academies and acceleration workshops to empower businesses, enabling them to thrive and maintain dignified livelihoods."
Amnon, what role does the State of Israel play?
"During each Shopping IL event, the state collaborates closely with Google, underscoring its significance in fostering e-commerce and enhancing economic competitiveness," emphasized Merhav. "Addressing the cost of living, driven by limited competition, the growth of online commerce opens up new avenues for small businesses to compete with industry leaders. As a government, we are staunch advocates of this transformation, supported by our agency for small and medium enterprises."
Did the war accelerate these trends?
"While clear indicators are yet to emerge, we perceive notable shifts, particularly among evacuees from places like Kiryat Shmona, where small businesses have relocated," Merhav noted. "Through our business agency, we provide comprehensive support, including consultancy to develop strategic plans and establish online commerce capabilities."
Barak, how do you stimulate consumer engagement?
"During crises, we observe a surge in demand as Israelis increasingly embrace online shopping," highlighted Regev. "In 2023, 93% of Israelis made online purchases, with 77% favoring Israeli brands. The Ministry of Economy collaborates through our Israeli headquarters at Shopping IL, empowering local businesses. Shopping IL serves as a vital platform, propelling businesses to the forefront and facilitating their growth."
"For consumers, this platform is invaluable, offering enhanced product accessibility and price comparisons," added Merhav. "We continue to challenge certain top brands that redirect Israeli users to local websites, blocking international options to protect local importers. Our goal is to open the global e-commerce market for Israeli consumers."
Has the international boycott impacted Israel's economy?
"We haven't seen a significant impact on trade with Israel," affirmed Merhav. "The Turkish embargo, which amounted to $8 billion in annual imports, posed challenges, yet Israeli importers swiftly adapted. We oppose the Ministry of Finance's proposal to revoke VAT exemptions on online purchases up to $75, viewing it as an additional tax burden. We advocate raising the exemption, possibly to $150, to foster greater competition and consumer access. The primary e-commerce challenge remains in optimizing supply chains."
Regev concurred, "Seven years ago, I identified supply chain logistics and 'last-mile' challenges as critical barriers hindering online expansion. While progress has been substantial, recent logistical disruptions during the conflict underscore the need for further enhancements."
What steps are necessary moving forward?
"Logistics companies possess a unique opportunity to streamline operations, aiming for same-day delivery capabilities," suggested Merhav. "Establishing supply centers akin to global hubs like London and New York would significantly accelerate economic activity."
"Additionally," Merhav continued, "the Ministry of Economy is undertaking a substantial 'European standards' reform initiative, aiming to align with European practices, eliminating port inspections. Integration into the expansive European market, encompassing over half a billion consumers, promises to expedite e-commerce and reduce consumer costs by approximately NIS 500 ($133) per family annually. Our vision includes a digital transformation, where all government services will become accessible online."
Barak, how does AI intersect with e-commerce?
"For many entrepreneurs, transitioning online involves overcoming significant digital barriers," acknowledged Regev. "At the Shopping IL Academy, we focus on equipping businesses with the right tools and strategies. AI will play a pivotal role in simplifying operations, potentially utilizing virtual assistants to manage digital complexities effectively."
