Daraz to launch a refreshed look

E-commerce platform Daraz plans to launch a refreshed look of its brand this year as part of its efforts to build the ecosystem with significant investments in technology.

"This is one of the initiatives I'm most excited about for 2022 – not only because I love the feel of the new brand, but also because it signifies the next chapter for building amazing service offerings," said Daraz Group Founder and CEO Bjarke Mikkelsen.

The company wants to utilise the success it achieved in 2021 when the company found huge success in its special sales campaign 11.11 Single's Days sale and introduced livestreaming feature Daraz Live.

"The 11.11 Single's Day sale was of course our main campaign and highlight of the year, with over 14 million users visiting our platform across our five markets and almost $10 million worth of products sold in the first hour," Mikkelsen said.

The Daraz Live has provided its customers with the opportunity to engage directly with the sellers through livestreamed interactive sessions, he said.

He made the comments during a conversation with Daraz Bangladesh Managing Director and CEO Syed Mostahidal Hoq, Daraz said in a statement yesterday.

"2021 was an exceptional year for the business. We ended the year with over 40 million active users on our platform across our five markets and made huge progress on user experience," Mikkelsen said.

"Our focus for 2022 is to further raise the bar for great customer and seller experience, and to engage more women in the marketplace – both as customers and sellers."

The impact of the pandemic remained a key challenge in 2021.

"At the same time, we are fortunate that more than 70 per cent of our deliveries are carried out through Daraz Express (DEX) – our very own digitalised logistics arm."

So, therefore, the company had greater control over the flow of goods, he said.

"Another huge topic is seller education. As seller sign-ups have accelerated during the pandemic from all areas of the country, we have had to intensify our investments in Daraz University to educate sellers on e-commerce operations and ensure a good customer experience," Mikkelsen said.

Over the past six years, Daraz has grown so much and the company wants to evolve the brand to showcase how it is shifting gears as a business.

Today, e-commerce in South Asia represents only 2 per cent of total retail sales and in Bangladesh it is less than 1 per cent, said Daraz Bangladesh's Syed Mostahidal Hoq.

"This signifies the vast growth opportunity that we have and the unique position Daraz is in to further elevate the standards of the commerce industry in South Asia, as we leverage our expertise and knowledge in online commerce to drive improvements."

Some of the key ways in which Daraz Bangladesh is redefining the country's e-commerce industry include the launch of DEX in 2018, Hoq said.

Daraz Bangladesh recognised the logistical challenges facing small businesses in each of the company's markets, including Bangladesh, and built DEX to digitise the e-commerce supply chain for better efficiency, he said.

Since most of the population is unbanked, digital wallet adoption is critical to create financial inclusion in the region. Daraz Wallet is set to lead this development, Hoq said.

"Since its launch in 2019, users have quickly shifted to this new payment method. Coupled with the onset of Covid-19, we expect a continuous growth in the adoption of digital payment methods," he said.

Bangladesh has been one of the fastest growing economies in the world in the past decade and is an important market for the company, said Hoq.

The company's purpose is to 'Uplift communities through the power of commerce', and we believe education is the key enabler to truly unlock the potential of Bangladesh as well as the region, he said.

"Our Daraz University, for example, gives entrepreneurs and SMEs the skills they need to unlock their business online. Through the online learning centre, we offer personalised and localised courses on all facets of the e-commerce ecosystem, and it allows sellers to gain certification from leading universities free of cost."

Over the last 12 months, the company has made significant progress in creating further value at each stage of the customer experience, he said.

With a population of 167 million, a young urban population, and an internet penetration at a rate of 41 per cent, we believe that Bangladesh's digital economy is now at an inflection point, he said.

"In line with this belief, Daraz is committed to working together with the Bangladeshi government to fuel the growth of digitalisation and e-commerce in the country."