Daraz.pk presentation

Marketing Research: Ecommerce Industry in

Pakistan(daraz.pk)NASHMIAH KHANFARWAH FATIMA

NAJIA FARAZSARA AMJAD

Problem Definition

Slow pace of online shopping trend in Pakistan

Approach To The Problem

Lack of online payment method Market distribution Fake orders Logistic companies dispute Delayed payments Lack of awareness No after-sales service

Introducing the market leaders:Daraz.pk

Name: Daraz Idea: daraz, holds everything. The place where

you find everything.

Founded in: August, 2012

Categories: Daraz brings to you the most sought after collection of apparels, footwear, accessories, jewellery and more. We are there before you to source the latest products exclusively for your wardrobe.

Daraz – the 24x7 Online Fashion & Lifestyle Store for

everyoneWe have more designers and brands than Zamzama,

M.M.Alam Road and Jinnah Super combined so all your fashion needs can be conveniently and

competitively fulfilled under the umbrella of Daraz. You can choose from our extensive range of men’s

shirts, unique dresses for women with matching footwear, accessories, handbags and much more - all

on one website!. So why you still waiting? Browse Daraz.pk and experience Online Shopping in

Pakistan. Call us on (021) 11-11-32729 or email us at [email protected] for any queries or concerns.

Secondary Data AnalysisDaraz.pk

Secondary Data Analysis

Lack of online payment method: Facilities like paypal lack in Pakistan but if introduced here, it will

only be accessible to just limited people

Bank sector has realized the gap in the market and are working to fill in


Market distribution: Orders placing from remote geographical locations

Partnership with TCS


Fake orders: Major problem at time of establishment

Curiousness among people

Blocking customers placing regular fake orders


Logistic companies dispute: Cash flow dispute (how long do they take to payout the funds

collected on site’s behalf)

Cash on delivery amount is restricted to Rs.50,000

Above than Rs.50k purchase, customer has to pay via prepaid order


Lack of awareness: Cultural and first move disadvantage

Not willing to take risk

Customers do not know how to place order

Mass online marketing for awareness


No after-sales service: Strive to provide best quality and original product

If there is compromise on quality of a product, it is mentioned on site

Quality check done for products that are to be shipped

Research Design

Exploratory research i.e. to get better understanding and insight of the problem and know the viewpoint of customers

Target Audience Age:

16 - 25 26 - 35 36 - 45

SEC: SEC A SEC B

Gender: Male Female

Education: Literate Internet users

Geographic Location: Urban residents

Research Audience: Research audience for “daraz.pk" will be the purchaser.

Sampling

Sample size: 150

Extended sample size: 170

Research method: Quantitative

Sampling Method: Simple Random Sampling

Research Data Analysis

Don't trust at all To some extent Trust enough to purchase

Fully trust0

10

20

30

40

50

60

70

80

10.6666666666667

66.6666666666667

16.6666666666667

0

Research Data Analysis Trust Factor:

Once a week Once a month Once a year More than once a year0

5

10

15

20

25

30

35

40

45

8

30

40

28

Research Data Analysis Online shopping purchase trend:

10

10

20

30

40

50

60

52.6666666666666

17.3333333333333

26.6666666666667

Daraz.pk

Kaymu.pk

Dealstoday.pk

Research Data Analysis

Site Preference:

Bank Draft Cash on delivery Debit card Easy paisa0

10

20

30

40

50

60

70

80

Series1

Research Data Analysis Payment method preference:

Highest approval Lowest approval High low Highest disapproval0

10

20

30

40

50

60

52.6666666666666

16

29.3333333333333

2

Research Data Analysis: Traditional v/s Online (Rating)

Quality (Traditional):


5

10

15

20

25

30

35

31.3333333333333

27.3333333333333

31.3333333333333

10.6666666666667


Quality (Online):


Price (Traditional):

Not at all reasonable reasonable Reasonable to some extent Most reasonable0

5

10

15

20

25

30

35

40

45

50

10

45.3333333333333

40

11.3333333333333

Not at all reasonable reasonable Reasonable to some extent

Most reasonable0

5

10

15

20

25

30

35

40

22.6666666666667

38

28

10.6666666666667


Price (Online):

Convenience (Traditional):



5

10

15

20

25

30

35

40

4542

14.6666666666667

36.6666666666666

7.33333333333334


After-purchase service (traditional):


5

10

15

20

25

30

35

40

35.3333333333333

29.3333333333333

23.3333333333333

12


10

20

30

40

50

60

53.3333333333333

14

29.3333333333333

3.33333333333333


Delivery Facility (Online) :


5

10

15

20

25

30

35

40

4542.6666666666666

25.333333333333326.6666666666667

5.33333333333334


Payment facility (online):

Research Data Analysis: Scope for Online Shopping in Pakistan

Do you think there is scope for online shopping in Pakistan?

10

10

20

30

40

50

60

70

80

9084.6666666666667

15.3333333333333

YesNo

Online Shopping Rated by Respondents

1 2 3 4 50

5

10

15

20

25

30

35

40

45

50

13.3333333333333

24.6666666666667

45.3333333333333

16

7.33333333333334

Research Data Analysis Respondents asked if they will recommend

online shopping:

10

10

20

30

40

50

60

70

80

90

79.3333333333333

20.6666666666667

YesNo

Research Data Analysis: Likes and Dislikes about Online Shopping

Likes One click away Variety Time saving Feasibility Convenience Energy saving On time deliveries Easy to search

Dislike Lack of quality assurance Size variation More options d/f for decision Payment issue Shipping charges No after-sales service Delayed deliveries Delayed confirmation No guarantee No responses

Research Data Analysis: Advantages and Disadvantages about Online Shopping

Advantages Time saving Convenient All under single website Review options Doorstep delivery Payment method Affordability Availability Mass market can be targeted

Disadvantages Quality risk Bargaining Fake/unoriginal products Account hacking Frauds and fake sites Customer service Do not receive the product as

it is showcased on sites

Reasons for slow pace of online shopping trend in Pakistan

Lack of awareness Lack of trust Lack of reliance on the product due to no physical test Lack of customer loyalty Lack of quality Lack of technology awareness Lack of reliability on sites Lack of product description Lack of practice Traditional mindset of people

Results and Recommendations

ResultsBenefits of E-Commerce in Pakistan:

Banks. Employment Opportunities. Business for Courier Services. Less Costly & More Beneficial. Domestic Entrepreneurs Gets Platform. Getting Aware of the Importance of Business.

Results On hand experience of product. Saves a lot of time. One bad experience keeps them away to

purchase again. No exchange policy issue. They feel comfortable in COD mostly. User friendly websites and app. Doorstep delivery is much approved by the

customers. Recommendation/testimonials about the product.

Results Lack of a dedicated online payment gateway

such as Paypal. Bottlenecks in distribution and delivery

channels to rural areas. Low Literacy rate has led many Pakistani firms

to give low priority to e-commerce due to unavailability of proper framework for the internet in the country.

Unavailability of proper infrastructure.

Results (Secondary Source) Propakistani.pk stats for the reason of slow

growth of online shopping in Pakistan:

65% use internet at least once a week 98% of the people are not satisfied with the internet speed. 2% of the people say they shopped online and 99% of the 2%

people said they shopped online once. 99% of the online shoppers feel insecure doing transactions online.

Foreign Trend of Online Shopping In Europe and America, buying online is a routine

for everyone. People buy both tangible and non-tangible goods online but in countries like Pakistan, still people are reluctant there to shop online. United States, Europe and Australia are the big Markets for Online Shopping where you can buy anything hassle free. Products are delivered within the time they have described.

Recommendations Mobile apps like OLX and eBay. Advertise on sites such as Geo news, Dawn, Tunes.pk Aim for a seamless payment system. Debit cards at the doorstep. Spread outside of tier 1 to tier 2 cities Delivery timelines Educate people on the pros of online shopping

Data & Analytics

Daraz.pk presentation