“The Lithuanian e-commerce market is growing, with increasingly more companies adopting e-commerce solutions and competing with each other in the digital space. Strengthening competitiveness and implementing digital solutions can be too costly for small and medium-sized businesses, which often becomes a barrier to business growth. By investing in more advanced digital solutions, companies will be better able to compete with the market leaders in e-commerce and services, and citizens will have a wider choice of attractive and convenient goods and services available online,” says Sigita Skrebė, Head of the Business Productivity Projects Unit at the Innovation Agency.
Ms Skrebė revealed that in the short time since the call was launched at the end of June, the Innovation Agency has received a lot of interest and enquiries.
“This shows that businesses are really interested in the new tool and want to create e-stores and visual configurations of their products. The latter are digital models of the product being sold, where the shop customer can change the colour, size, material, add details or change other product parameters. A good example of visual configurations is the furniture manufacturer Ikea’s tool to virtually assemble its furniture, which will allow Lithuanian businesses to deploy similar solutions by taking advantage of the new call. In addition, this call is unique in that it is also open to businesses operating in the capital region, where 80% of the funds administered by the Innovation Agency, in the 2021-2027 period, will be allocated exclusively to the regions of Central and Western Lithuania,” says Ms Skrebė.
The Innovation Agency is investing in the promotion of e-commerce in Lithuania not only by providing financial investment, but also by strengthening international e-commerce competences.
“Statistics show that one in two Lithuanians shop online, compared to more than 80% in the US, the UK and Germany. When you consider the population of these countries, it is clear that to grow considerably, we need to move into international markets. However, before doing so, it is important to do your homework – to carry out market research, to analyse the consumer, economic, technological, social and cultural aspects of the chosen country, and to assess whether the product offered in the new market would be in demand or whether it has a competitive advantage. If you are considering expanding your e-commerce abroad, our experts can help you answer some of these questions,” says Giedrė Rožytė-Jokūbavičienė, Head of E-commerce, Market Development of the Breakthrough Department at the Innovation Agency.
She adds that it is important to adapt an e-shop accordingly before entering a foreign market.
“Studies demonstrate that an e-shop adapted for a foreign market increases conversion by around 70%, but translating the texts into the local language is insufficient. Ideally, shoppers should feel that the seller is a local business in their country. This requires proper translation of product descriptions, displaying prices in the national currency of the country in which the product is sold, and offering a range of delivery options and popular payment methods. What works well in one country may have completely different consumption, delivery or payment traditions in another,” explains Ms Rožytė-Jokūbavičienė.
SMEs operating throughout Lithuania can submit project implementation plans. Up to €5 million is available for companies operating in the capital region and up to €7 million in the Central and Western Lithuania region.
Up to €25,000 is available for e-commerce solutions, and up to €25,000 for the configuration and visualisation of services and products. Companies can apply for up to €50,000 for both activities. The minimum amount of funding per project is €10 000.
Applications are accepted until 2 October this year. The full terms and conditions of the call can be found on the European Union Investment website.
The Innovation Agency is organising a remote training for applicants of this call on 27 July at 10 a.m. Registration is available here.
The “Digitalisation of SMEs” measure is implemented under the Programme for the European Union Funds’ Investments 2021-2027.
To strengthen the Lithuanian economy, the Ministry of the Economy and Innovation will launch calls totalling almost €1 billion by the end of 2023. Around €365 million is earmarked for business, innovation and investment, €320 million for digitalisation of the state and business, and €268 million for a greener economy.
All current and forthcoming calls, with detailed descriptions and conditions, are available on the Innovation Agency website. The Innovation Agency also provides free advice on starting up, expanding and choosing the right financing instruments.
