Daraz.pk presentation

Marketing research on ecommerce industry

1. Marketing Research: Ecommerce Industry in Pakistan (daraz.pk) Nashmiah Khan Farwah Fatima Najia Faraz Sara Amjad

2. Problem Definition Slow pace of online shopping trend in Pakistan

3. 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

4. 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.

5. Daraz – the 24x7 Online Fashion & Lifestyle Store for everyone We 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.

6. Secondary Data Analysis Daraz.pk

7. 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

8. Secondary Data Analysis Market distribution: Orders placing from remote geographical locations Partnership with TCS

9. Secondary Data Analysis Fake orders: Major problem at time of establishment Curiousness among people Blocking customers placing regular fake orders

10. Secondary Data Analysis 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

11. Secondary Data Analysis 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

12. Secondary Data Analysis 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

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

14. 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.

15. Sampling Sample size: 150 Extended sample size: 170 Research method: Quantitative Samplin g Method: Simple Random Sampling

16. Research Data Analysis

17. Research Data Analysis Trust Factor:

18. Research Data Analysis Online shopping purchase trend:

19. Research Data Analysis Site Preference:

20. Research Data Analysis Payment method preference:

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

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

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

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

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

26. Research Data Analysis: Traditional v/s Online (Rating) After-purchase service (traditional):

27. Research Data Analysis: Traditional v/s Online (Rating) Delivery Facility (Online) :

28. Research Data Analysis: Traditional v/s Online (Rating) Payment facility (online):

29. Research Data Analysis: Scope for Online Shopping in Pakistan Do you think there is scope for online shopping in Pakistan?

30. Online Shopping Rated by Respondents

31. Research Data Analysis Respondents asked if they will recommend online shopping:

32. 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

33. 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

34. 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

35. Results and Recommendations

36. Results Benefits 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.

37. 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.

38. Results L ack of a dedicated online payment gateway such as Paypal . B ottlenecks 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.

39. 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.

40. 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.

41. 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