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1st ROUND
CASE & INSTRUCTIONS
About Daraz
Daraz is the leading online marketplace in South Asia, empowering tens of thousands of sellers to
connect with millions of customers. Daraz provides immediate and easy access to 10 million
products in more than 100+ categories and delivers more than 2 million packages every month to
all corners of its countries. Daraz is a mall, a marketplace and a community for its customers. It is
also a university for entrepreneurs, and every month it educates more than 5,000 new sellers on
e-commerce operations. To overcome the logistics challenge in its markets, Daraz has built its
own logistics company specifically designed for e-commerce operations - Daraz Express
(known as DEX) - to raise the standards for the industry. Daraz is also helping existing and new
logistics providers digitize. In 2018, Daraz was acquired by Alibaba Group, and is proud to carry
its part of the mission to 'make it easy to do business anywhere in the era of the digital economy'.
As part of the Alibaba ecosystem, Daraz is leveraging Alibaba’s global leadership and
experience in technology, online commerce, mobile payments and logistics to drive growth in its
markets.

Objective
You have assumed the role of Strategy Manager at Drawer.com.bd

Your project is to design a roadmap for the development of a new business unit – Drawer Private
Label. The project will be focused on creating product brand/brands owned by Drawer. The
business potential of private label for Drawer is huge in this field. Amazon does $2.3 Billion yearly
from its own brands, or about 1% of its total yearly revenue and total private label revenue for the
retailers in the US were about $128.6 billion in 2018.

The top management at Drawer wants this new business unit to be setup in the next 30 days. In
your proposal for the new business units, you are required to cover all business aspects including
(but not limited to) commercial, operations, marketing and supply chain. The budget for the new
project is entirely dependent on the strategic proposal and/or feasibility analysis and how
convinced the management feels about your strategic plan. However, please note any budget
over $200,000 will be vetted very aggressively.

Context
For every retailer across the globe online or otherwise, the primary source of income is the margins
earned from sales. To achieve this goal, they setup processes, build facilities and hire specialized
people. This helps them to gather valuable customer insight over customer behavior and product
performance across categories. Since the retail margin is very low, it is only logical for these
brands to manufacture their own products and sell through their specialized channels to earn a
higher margin on the sales.
This is even truer for an ecommerce platform, since they have a more objective and specific source
of learning about customer behavior from their own platform data. The right sales channel,
customer insight, and good product at competitive prices make a very good combination for profit
booster. The negative side is since they are specialized retailers and not manufacturers, many a
times they tend to grossly misunderstand the industry and its practices.

Currently Drawer operates in Bangladesh and no Ecommerce platform in this market has tried
their own label. Even the offline retail doesn’t have a sizeable data and example to work from.
There are many ways you can implement the private label project for Drawer. Please consider the
following options for the private label you will be creating,

• Build a manufacturing facility and directly produce your products, this provides with the highest
profit margins but you need to look after end to end all supply chain and regulatory issues.
• Have a manufacturing partner who will produce certain quantities for you, here you only look
after the forward supply chain, but lose some of the margin to the manufacturer.
• Have a sourcing partner to maintain the manufacturer and the regulatory issues and import
side (if required). Here you need to leave out higher margin.
• You can also adopt a white label policy where you buy finished goods and relabel them with
your brand name.

Exercise
For you to launch private label, you would need to keep in mind that this is going to be a primarily
online brand. The brand may carry the association with Drawer or may not disclose the
association. The commercial revenue of Drawer for the last year is provided below,

Average
Orders
Categories Revenue Items sold Item Page views
generated
price
Bags and Travel $ 3,732,860 $ 6 8,748,833
524,930 576,182
Bedding & Bath $ 980,823 $ 8 1,625,967
97,558 116,528
Cameras $ 4,695,789 $ 15 4,662,300
279,738 304,564
Computers & Laptops $ 7,207,920 $ 17 6,116,433
366,986 425,254
Digital Goods $ 5,136,936 $ 4 20,589,933
1,235,396 1,341,684
Fashion $ 16,683,279 $ 6 36,919,767
2,215,186 2,740,776
Furniture & Décor $ 6,762,864 $ 13 6,646,133
398,768 516,454
Groceries $ 9,459,418 $ 3 19,398,600
1,163,916 2,761,712
Health & Beauty $ 10,076,452 $ 5 26,584,033
1,595,042 2,164,658
Home Appliances $ 7,735,158 $ 32 3,587,700
215,262 242,896
Groceries $ 9,459,418 $ 3 19,398,600
1,163,916 2,761,712
Health & Beauty
Groceries $ 10,076,452
9,459,418 $ 5
3 26,584,033
19,398,600
1,595,042
1,163,916 2,164,658
2,761,712
Home Appliances
Health & Beauty $ 7,735,158
10,076,452 $ 32
5 3,587,700
26,584,033
215,262
1,595,042 242,896
2,164,658
KitchenAppliances
Home & Dining $ 1,432,764
7,735,158 $ 5
32 3,657,467
3,587,700
219,448
215,262 273,632
242,896
Laundry&&Dining
Kitchen Cleaning $ 384,768
1,432,764 $ 7
5 757,033
3,657,467
45,422
219,448 56,644
273,632
$
Livestock
Laundry & Cleaning $ 83,000
384,768 $ 7 1,667
757,033
100
45,422 100
56,644 830
Media, Music & Books $ 905,371 $
$ 10 1,047,467
Livestock 83,000 62,848 86,352 1,667
100 100 830
MobilesMusic
Media, & Tablets
& Books $ 69,329,729
905,371 $ 51
10 18,578,933
1,047,467
1,114,736
62,848 1,372,232
86,352
Mother && Baby
Mobiles Tablets $ 4,070,604
69,329,729 $ 10
51 4,934,600
18,578,933
296,076
1,114,736 411,964
1,372,232
Motors & Baby
Mother $ 17,164,684
4,070,604 $ 73
10 3,294,467
4,934,600
197,668
296,076 235,514
411,964
Pet Supplies
Motors $ 446,923
17,164,684 $ 8
73 731,067
3,294,467
43,864
197,668 59,140
235,514
Special Digital Products
Pet Supplies $ 732,637
446,923 $ 3
8 4,251,667
731,067
255,100
43,864 255,100
59,140
Sports
Special&Digital
Outdoors
Products $ 5,520,658
732,637 $ 15
3 5,423,033
4,251,667
325,382
255,100 368,438
255,100
Stationery
Sports & Cra�
& Outdoors $ 2,246,673
5,520,658 $ 1
15 3,354,267
5,423,033
201,256
325,382 1,674,476
368,438
Tools, DIY &&Outdoor
Stationery Cra� $ 3,233,717
2,246,673 $ 6
1 7,067,433
3,354,267
424,046
201,256 567,590
1,674,476
Toys &DIY
Tools, Games
& Outdoor $ 2,483,707
3,233,717 $ 9
6 3,819,633
7,067,433
229,178
424,046 278,590
567,590
TV, Audio / Video,
Toys & Games $ 2,483,707
18,113,766 $ 9
10 3,819,633
26,062,367
Gaming & Wearables 229,178
1,563,742 278,590
1,785,198
TV, Audio Sunglasses
Watches / Video,
$ 18,113,766
6,702,103 $ 10
6 26,062,367
17,761,700
Gaming
Jewellery& Wearables 1,563,742
1,065,702 1,785,198
1,195,364
Watches Sunglasses
Grand Total $ 6,702,103
205,325,458 $ 6
10 17,761,700
235,625,067
Jewellery 1,065,702
14,137,504 1,195,364
19,811,218
Grand Total $ 205,325,458 $ 10 235,625,067
14,137,504 19,811,218
A simplified cost structure of the sourcing options are provided below,

Fixed Added cost on Finance Drawer's

Souring options MoQ (yearly)
Cost product cost RRR
Self-Manufacturing $400,000 N/A 2%
1,200,000 15%
Manufacturing
N/A 7% 2%
partner 960,000 15%
Sourcing partner N/A 12% 2%
24,000 15%
White label N/A 9% 2%
60,000 15%

Qustions:
1. Which category of products do you want your brand to cater to first? Please justify.
2. What is the name of your brand? Write your tagline. Why do you think it’s a good fit for
your brand?
3. What will be your product sourcing strategy? Please justify.
4. Please draw up a pricing strategy for your products.
5. Write 4 key USPs your products must have, so that you can differentiate them from
competition. Justify using your target customer base’s purchasing behavior.
6. What is your targeted sales volume in a year? Why?
7. Do you think it will be a good move to also create an offline sales channel for the brand?
Please justify.
 INSTRUCTIONS
1. Participants are requested to read the case carefully and provide a proper and justified
solution.

2. There is no specific slide limit. The Official Logo of BriefCase & Daraz should be used in any
corner of the first slide.

3. Both of the files (PPT/PPTX & PDF) should be named in the following manner:
Team name_Round 1_BriefCase 2.0 For example: Team X_Round 1_BriefCase 2.0

4. The solution has to be submitted in PPT or PPTX format. Along with this, you also have to
submit your PPT/PPTX in PDF format in this following link:
https://forms.gle/DMN8cFn4FYVL44Z59

The files have to submitted as a ZIP format

5. Mentioning the name of team members anywhere in the solution is prohibited and any slides
containing team members' names will be disqualified.

6. The deadline for submission is 11:59 PM, Saturday, June 27, 2020

7. Any teams violating the rules or missing the deadline will be penalized.

8. EWUBC reserves the right to change any provisions and regulation of the competition
without prior notification.
 JUDGEMENT CRITERIA
SL No. Area Marks
1 Solutions 70
2 Feasibility 10
3 Slides 15
4 Deadline Management 5