Professional Documents
Culture Documents
A PROJECT REPORT ON
DARAZ.PK
SUBMITTED BY
NOMAN MIRZA-21138
AQEEL KHAN-20939
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Contents
ACKNOWLEDGEMENT .............................................................................................................................. 3
ROCKET INTERNET INTRODUCTION ..................................................................................................... 4
ROCKET INTERNET’S MISSION.................................................................................................................. 4
DARAZ.PK – A VENTURE OF ROCKET INTERNET................................................................................. 4
WHEN WAS IT ESTABLISHED AND BY WHOM ..................................................................................... 5
WHY DARAZ.PK CAME INTO EXISTENCE: ............................................................................................. 5
MOTIVATION BEHIND THE STARTUP OF DARAZ ................................................................................ 6
PAIN POINTS............................................................................................................................................... 6
RECENT CHALLENGES FACED BY DARAZ.PK ............................................................................................. 6
PAIN POINT OF CUSTOMER’S SHOPPING FROM DARAZ.PK ................................................................... 6
PAIN POINTS OF CONVENTIONAL SHOPPING ......................................................................................... 6
PAIN POINTS OF CONVENTIONAL SHOPPING FROM E-COMMERCE IN PAKISTAN ................................ 6
MARKET OPPORTUNITIES (Based on Research) ...................................................................................... 7
LINE OF BUSINESS ..................................................................................................................................... 8
DARAZ.PK MISSION ................................................................................................................................... 9
DARAZ.PK VISION ...................................................................................................................................... 9
CORE VALUES OF DARAZ.PK .................................................................................................................... 9
GAP ANALYSIS .......................................................................................................................................... 10
LACK OF CREDIBILITY .............................................................................................................................. 10
ON GROUND PRESENCE: ........................................................................................................................ 10
PRODUCT QUALITY ASSURANCE ............................................................................................................ 11
BUSINESS CATEGORY.............................................................................................................................. 11
OVERALL STRATEGY ............................................................................................................................... 12
RECENT PROMOTIOANL EVENTS AT DARAZ.pk ................................................................................ 14
ORGANIZATIONAL STRUCTURE ........................................................................................................... 16
OPERATING STRATEGY .......................................................................................................................... 17
KEY SUCCESS FACTORS OF DARAZ.PK ................................................................................................. 18
FUTURE OPERATING PLAN FOR THE NEXT FIVE YEARS.................................................................. 23
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ACKNOWLEDGEMENT
It is important to acknowledge the participation of several individuals, who provided us with the
necessary skills, interests, and information to create this report.
First and foremost, our sincerest gratitude goes to our teacher Sir, Ekhlaque Ahmed, whose
teaching and dedication have been of tremendous help to us. It would have been impossible for
us to complete this report without her kindness to answer every question asked of us,
irrespective of time and place.
Furthermore, we would like to thank Mr. Aziz u Rehman, Acquisition Manager, DARAZ.pk. He
provided us with all necessary information as and when required by us. He answered every
question in complete detail and did not leave any point of confusion unclear.
It is also the effort of every member of the group who worked hard and cooperated with each
other. Without this commitment and cooperation, it would have been a difficult task to
accomplish this report.
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Rocket Internet builds and invests in Internet companies that take proven online business models
to new, fast-growing markets. Rocket Internet focuses on five industry sectors of online and
mobile retail services that make up a significant share of consumer spending: Food & Groceries,
Fashion, General Merchandise, Home & Living and Travel. It has a network of companies that
operate a variety of business models in over 110 countries or more.
Rocket Internet is one of the world's biggest online business and established in 2007 by the
Samwer siblings. The authors picked up perceive ability through fruitful interests in Group-on,
eBay, Facebook, LinkedIn, Zynga, and so on.
The organization's plan of action is to identify successful internet ventures from other countries
(often the United States) and imitate them in dominatingly developing markets.
“To create the world’s largest internet platform outside of China and the US”
Pakistan is an emerging market, and DARAZ.pk is one of the most attractive and fruitful internet
venture started by Rocket Internet.DARAZ.pk is an online store set up in Pakistan in the year 2012
and brings the most recent Pakistani and global form brands to the doorstep.
DARAZ.pk showcase multiple products of various brands: from local retailers to world known
brands. The primary focus of DARAZ.pk is to bring a simple, easy and safe online shopping
methods that are accessible with just a click of a button. DARAZ.pk is the first brand to introduce
the free 7-day return policy.
Different 3pl parties handle the door to door delivery and through AIGx Rocket internets another
venture Different options are available for the customers to confirm the order or by selecting
cash on delivery.
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DARAZ.pk – a Berlin based Rocket Internet’s venture was established in June 2012 and the two
founders are:
Muneeb Maayr – He started his career in investment banking in New York in 2001 but
was quick to go to this start up route and take massive decisions to develop it further.
Farees Shah – He was the first member of the Rocket Internet Team in Pakistan.
One of the primary reason was to become the pioneer of E-commerce industry in Pakistan. The
first opportunity that DARAZ.PK took advantage of was two-fold: one is that people were
becoming more Internet savvy and the mobile phone penetration was also going up, and second,
South Asian countries have strong developing economies. Economic growth is not only in the
capital cities but also across the whole countries. Initially, DARAZ.PK started with the local and
Branded fashion items; They bought all fashion items under one umbrella for Pakistani market
who faced difficulties in either searching for product or availability of that products at their
doorstep. On the same year Daraz.Pk came up with their fashion brand Private Label. In 2014
DARAZ.PK shifted its focus from being only fashion and apparel E-tailer to an online retailer that
offers a different range of lifestyle products to consumers. Time to time DARAZ.PK gained the
reputation in the market but with a lot of barriers on their way. In2015 DARAZ.PK launched
multiple categories on their portal from small appliances to large appliances and became single
online shopping portal to offer different categories.
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E-commerce is massive worldwide with 3G and 4G .E-commerce in Pakistan has reached a turning
point, and it’s only a matter of months before a massive boom in the industry. Every mobile in
the country will in the future be internet enabled, so that’s 120 million users
Moreover, interestingly, the e-commerce revolution will essentially be fueled by people in distant
cities who are aware of the latest trends and gadgets and have the purchasing power but don’t
have access to contemporary offerings.
PAIN POINTS
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Pakistan is an emerging market, and DARAZ.pk is one of the most attractive and fruitful
internet venture started by Rocket Internet. DARAZ.pk is an online store established in
Pakistan in the year 2012 and brings the latest Pakistani and international fashion brands
to doorstep. The following market opportunities were found in Pakistan
• Pakistan is the 6th most populous nation in the world where 60% of the people are
under the age of 15 to 45.
• 110 million 3/ 4G users expected by 2019 and 25-45 million broadband users expected
by 2020
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• Citizens in Pakistan have 125 million connections of mobile where 6 million people are
using smartphones, and the growth rate is 10%
• 30 million are the internet users, and the rate of increase is 16%
• 2.2 million broadband users and the rate of increase is 41%
• 12.6 million is the monthly active users are on social media and maximum of which as
per age distribution 18-34.
• Top 5 industries are FMCG, Fashion, telecom, electronics, and beauty
LINE OF BUSINESS
The line of business of this startup venture is Online Shopping. DARAZ.pk has a diverse collection
of products and services ranging from clothing, shoes, sports, and electronics to various other
appliances and items. They aim to have the widest assortment in almost all possible categories,
eventually ending up being the destination for all products searched in Pakistan.
DARAZ.pk is an online store established in Pakistan in the year 2012 and brings the latest Pakistani
and international fashion brands to doorstep. It has a cutting-edge e-commerce platform, a
highly experienced buying team, agile warehouse systems, their very own team of stylists and
fashion editors as well as a dependable customer care center. With these, it aims to provide the
best of Pakistani fashion, a wide selection of high quality products and a buying experience that
is new to Pakistan. The online buyers can order DARAZ.pk shoes, shirts, mobile, bags for both
men and women and a lot more by simply visiting its user-friendly website. Women can also shop
for cosmetics online by ordering some selective collection of DARAZ.pk cosmetics online. It has a
Cash on Delivery, Nationwide Shipping, and a 7- Day Returns Policy!
DARAZ caters to the endless variety of items that reflect any person’s individuality. It enables
people to walk into a closet of endless possibilities; a closet that embraces style, variety, and
most importantly affordable fashion.
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DARAZ.PK MISSION
To provide an enjoyable shopping experience for Consumers and to grow together with our
Sellers
Continue building a vast loyal customer base by having the broadest selection of products,
unbeatable prices, 100% reliable fulfillment and relentless focus on customer experience.
Continue to provide a differentiated value-added service to support scalability to the seller,
growth and integrated business solutions.
Achieve mission by focusing on core values and hiring, coaching and retaining the best people in
the industry through a strong company culture.
DARAZ.PK VISION
“To be the most relevant and inspiring marketplace, and offering the best service to our
customers: customer and sellers”
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GAP ANALYSIS
As per the research, we have identified the following gaps in the marketing strategy of DARAZ.pk
LACK OF CREDIBILITY
One of the main challenges that are being faced by DARAZ.pk is developing credibility and
authenticity among people on the use of the online platform for shopping.
Pakistan is a price sensitive market, so the customers are not inclined towards risk taking behavior.
It’s hard to convince customers to try the online platform when online fraud chances are high in the
country due to lack of education and lack of regulations in this sector.
A proper campaign must be initiated directed towards informing and educating customers towards
the advantages of online shopping and how to tackle credibility issues by highlighting the safety
measures taken by the company for its customers.
ON GROUND PRESENCE:
Although DARAZ.pk is an online store, it must still have a strong ground presence to direct customers
towards the online form of shopping. It’s a relatively new brand in the market so to penetrate
efficiently and quickly. It must apply to ground direct marketing tools such as brand activation, event
sponsorships, TV advertisement, etc.
These tactics will help in gaining customer attention through different mediums enhancing brand
reach. Since the primary target audience of DARAZ.pk is youth; therefore, it can sponsor university
events in which one session can be Grant for DARAZ.pk. Brand information, shopping advantages,
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unique selling proposition, etc. can be highlighted in those sessions with engagement activities such
as lucky draw.
Customer feedback and testimonials can be presented to develop a good image of the brand in the
minds of the customers.
Product Quality is a serious issue faced by DARAZ.pk which is negatively affecting its brand image as
per the interview with Acquisition Manager of DARAZ.Pk, Mr. Aziz Ur Rehman. When the products
are delivered to the customers against their order, product quality issue is being reported. It's
developing a wrong perception in the minds of the consumers regarding DARAZ.pk which is based on
brand values of quality, innovation and up to date trends.
The supply chain network can establish a quality assurance center with the key responsibility of
monitoring the goods received from suppliers so that products that reach the customers are of high
quality.
BUSINESS CATEGORY
DARAZ.pk falls in the category of E-Commerce. Technological development has gained pace in
recent decades that have brought about a good prospect for companies like DARAZ.pk, which is
an important E-commerce player. E-commerce category has also recently gained prominence in
Pakistan. DARAZ.pk has positioned itself as a brand that provides its customers with the best
online shopping experience that entails friendly user interface, availability of renowned local and
international brands and outstanding customer service. Its competitive advantage is based on its
customer oriented solutions such as return policy, free shipping, cash on delivery, etc. It is one of
the topmost brands that come to the customer's mind when they opt for online shopping
because of its innovative customer engagement activities. It’s a venture of Rocket Internet which
makes it a more reliable option in comparison to local competitor’s due to brand association.
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OVERALL STRATEGY
The company’s strategy is to tap the online market by creating awareness about the ease of
shopping experience using this platform. It provides 24/7 services using different engagement
tools. DARAZ.pk focuses on providing the customized shopping experience to its customer by
online user interface options. It also focuses on developing a secure online shopping environment
through engagement thereby developing the interest of the audience towards this mode of
shopping. It has an active IT team and a strong network of suppliers to fulfill customer needs on
time.
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continued to offer this "Cross-dock Service" but they are charging a processing fee of Rs.150 per
item for bulky products and Rs.75 per item for non-bulky products.
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HBL Shopping Carnival Minimum price discount: 30% 15982 283 318
Jazz Cash Cricket Festival Minimum price discount: 20% 4147 0 121
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ORGANIZATIONAL STRUCTURE
CEO CEO
HEAD OF DEPARTMENT
IBRAHIM SAJID
PRODUCTION MANAGER
QUALITY CONTROL
EDITING 5 STUDIO
TEAM LEAD
TEAM LEAD TEAM LEAD
IQRA RAHIM
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OPERATING STRATEGY
The strategic decisions of the organization depend upon its functional as well as its operating
strategy.
- What sales (revenue) it wants to generate and be the market leader in terms of revenue,
sales and assortment in the ecommerce playing field in Pakistan.
- What markets the business wants to explore (Business Expansion), both Rural and Urban
areas; via Web and App.
- Its strategies aim to create brand value to make it trustworthy, offer the best prices, easy
returns and the best possible customer service because customers are the key focus in
the brand ideology that helps develop the brand and the business further.
- One of the strategy is to promote a Market Place Model to control the cost of the
business. This model means to make a business setting such whereby the products of the
sellers are shown on the website and not bought from them before any customer asks for
it. This would leave a lot of space in the warehouse empty that can be utilized for
something else, reducing the cost of the business. The focus of this model is to manage
the lead times for strategic brands on consignment (Gul Ahmed, Alkaram, etc). This would
help minimize the cost of doing business by efficiently aligning resources to decrease
redundancy of effort.
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higher level of the hierarchy join the rest of the employees in a casual discussion and come up
with creative ideas.
DARAZ.pk is the number one destination for online shopping and product search in the
country.
It has marked its territory and has defined its goals to be the leading one-stop shopping
destination for all lifestyle needs.
It offers customers a riveting retail experience.
Its customers always have far more options for a certain product on its website than any
other mall or e-store in the country.
It engages and interacts with consumers on social media platforms
It provides consumers with the best of delivery services possible.
It offers shipping and a 7-day free return policy – that’s a first in Pakistan.
A satisfied customer is a returning customer and the success of DARAZ.pk is in a recurring
customer base. The company works relentlessly towards making sure a customer trusts
the brand.
It has been the pioneers of various services in the industry. For example, recently, it
piloted the mPOS services, enabling customers to pay through debit and credit cards, at
their doorstep, upon delivery.
It has also recently launched an app for its website, bringing top notch local and
international brands at the fingertips of the customers.
As most of its customers come from rural areas, they have developed an Urdu interface
for their convenience and understanding. This Urdu version on their website is to cater to
that part of the target audience who do not understand English.
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STRENGTHS
WEAKNESSES
THREATS
Security Issue
Increase in Online retailers - Competitors
OPPORTUNITIES
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DEPARTMENTS AT DARAZ.PK
Sorting
Receiving Buying SKU Gen QC
(Inbounding)
Receiving:
The items/products are processed in the receiving stage. They are received from the suppliers
and sorted out as SKU Samples so that they can be kept in the stock inventory.
Documentation is then done immediately after receiving the items and this includes
Supplier’s Packing List and all the documentation regarding the supplier, inventory, and the
prices.
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Buying:
A file is then uploaded during this stage to show attributes, sizes and quantity per design which
is for our own record because it is to be shown on the website and helps buyer in providing the
information regarding the product they wish to purchase.
SKU Generation:
When the items are received and their attributes, quantity and sizes are specified, the next
function is SKU generation for each item. The total SKUs generated should match the number of
SKUs on DARAZ tools. This is done on a specific software named BOB whereby the consignment
and SKUs are created.
Sorting (inbounding):
The items are inbounding and barcoded during this stage. PO is created and barcodes printed.
An OMS is created whereby the order can be tracked down.
QC and Content:
The items are processed through quality control during this stage. They are accordingly accepted
or rejected and made live on the website for the final step that is the customers to see and
purchase the product.
E-commerce has well and truly arrived in Pakistan with thousands of online shops offering
products across various categories. Rapidly growing 3G and 4G mobile broadband penetration,
affordable smart phones and easy-to-access mobile internet are driving this surge of e-commerce
activity. Most of these ecommerce shops are relatively small, specializing in specific product
categories and operationally premature compared to worldwide e-commerce leaders. While
setting up a web or Facebook shop might take a few hours and sound deceptively simple, scaling
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up e-commerce requires a certain expertise and know-how. The biggest local e-commerce
platform in Pakistan, DARAZ.pk has successfully been the market leader since its inception. The
secret behind its success is the business model DARAZ runs on. DARAZ isn’t merely an online
shopping mall alone; it’s a medium bringing Sellers and Customers together – it’s an
online marketplace. Instead of buying products and selling them to customers (Retail Model),
DARAZ acts as a trustee between Seller and Customer (Marketplace Model).
Thousands of Sellers (screened by DARAZ) list their products on the portal. DARAZ drives
a hundred thousand prospects every day to its Website and Mobile Application. Every customer
that places an order on DARAZ is protected by a 100% Purchase Protection policy: 100% Genuine
Products, Safe & Secure Payments and Easy & Free Returns. Only upon completion of
a successful transaction will DARAZ will release money to the Seller. Supporting this
effective business model is the smart, hi-tech software that DARAZ has developed with one of its
investors – Rocket Internet. It provides the customer a secure and convenient shopping
experience. DARAZ is currently showcasing almost 400,000 products from over 2,000 sellers,
expected to swell to over a million products by year end. And yet, this is just an instance of DARAZ
scraping the surface. The DARAZ business model has 3 advantages which directly influence
its huge product assortment.
Business to Consumers:
Here DARAZ.Pk provides the online platform to its sellers, irrespective of whether they are local
sellers, international sellers, and branded store. All the sellers can manage their shops online.
DARAZ.Pk provides the online platform to offline retailers. They have different software on that
seller center platform where they can see their details from basic to Financial Information. The
customer can browse over 250000 products on their website and choose whatever they want to
purchase by using user-friendly web portal. DARAZ.Pk only charge commission for all the
activities and different categories have the different commissions. (For categories see Exhibit 2)
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Business to business
Daraz.pk also cater to needs of different corporates and take orders from various organizations
like jubilee life insurance, Mitchell, and charge them a high commission as compare to online
customers.
Their future plan also includes a merger or an acquisition with another similar internet venture
or an online business. In this regard, DARAZ.pk is merging with another such business by the
name of Kaymu. The decision of this merger has already been taken place and is now in progress.
Kaymu is also a Rocket Internet’s venture which is an open marketplace where customers can
buy any new or refurbished products from smaller businesses and individuals – always at the best
price in the market. It is also a virtual business where sellers can sell everything and anything
through a simple and an easy to use interface. Apart from this merger, DARAZ.pk is planning to
buy out smaller startups and competitors in the time span of 2 to 3 years so that it can become
the only one and the biggest online shopping platform.
Their future plan also includes coming in contact with all the brands that they are selling and
asking them to mention DARAZ.pk in their advertisements which will promote the brand as well
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as DARAZ.pk. They intend to focus more on B2B orders such as selling in bulk to the businesses
in the near future.
Another major plan for the future is to become Alibaba Tmall for Pakistan. Alibaba is the search
engine, advertiser, and entire ecosystem and a marketplace platform for brands to sell their
products and DARAZ.pk has a plan to become such a platform in the next few years.
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Exhibit 1
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Exhibit 2
Fashion
Women's Fashion
Men's Fashion
GM
Appliances
Computing
Lifestyle Accessories
Equipment
Grocer's Shop
Bachat Bazaar
Packaging Materials
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