TEAM MUDBLOOD

SITUATION
ANALYSIS
 About 89 percent have
never tried online shopping
but the figures are
expected to lessen.

The Daily Star

(2019)
The online fashion market in Bangladesh is currently worth $598
million and it has the prospect to reach up to $1.24 billion by 2023.

The Daily Star- Statista Report

(2019)
 INDUSTRY ANALYSIS

GROWING MARKETS SUPPLY SIDE

At present, more than 35,000
In Bangladesh retail e-commerce is
individuals and above 25,000 SMEs
growing at 72 percent a month
are part of this sector.

E-COMMERCE

CONSUMER SIDE FUTURE PROSPECTS

Consumers seek value for price. As 38 percent Daraz BD will invest Tk 5bn by 2021
consumers said they always look for best eyeing towards economic expansion
discounts while the majority looked for value.

SOURCE: Financial Express, Boston Consultancy,

Light Castle Bangladesh
 TASK AT HAND

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.
 PROJECT
ROADMAP

BACKGROUND CATEGORY BRAND PRODUCT PRICING 4 KEY USP TARGETED

MARKET RESEARCH
SELECTION POSITIONING SOURCING STRATEGY SELECTION SALES AND
HANGER REVIEW BASE STRATEGY JUSTIFICATION
 BACKGROUND
(Understanding the Customer)
 BACKGROUND
Retail Analytics

RATIONALE:
Gain customer insights to better reach the
consumers before the new project rolls in,

DARAZ ALREADY HAS EXISTING INTERNAL RETAIL ANALYTICS TOOLS. USING THAT
DATA THE DEMANDED PRODUCTS CAN BE FOUND OUT AND CONSUMER
RESPONSES CAN BE ANALYZED BEFORE CHOOSING CATEGORIES
 BACKGROUND
Hanger Base

A REVIEWER COMMUNITY BASE CALLED “HANGERS” WILL BE CREATED FOR

THE DRAWER PRIVATE LABEL WHO WOULD REVIEW PRODUCTS
 BACKGROUND
Hanger Base-LEADERBOARD

RATIONALE:
Fun, engaging way to drive sales and gain
customer feedback for Drawer and its product
categories.

THE NAME REPRESENTS AN ACTUAL HANGER IN A DESK. CONSUMERS CAN

SHOP TO EARN POINTS AND REVIEW TO EARN EVEN MORE POINTS.
 ANSWER TO Q-01
(CATEGORY SELECTION)
 Q-1
CATEGORIES SELECTED

1.BAGS AND TRAVEL

2.FASHION
3.KITCHEN AND DINING
4.SPORTS AND OUTDOORS
5.STATIONARY AND CRAFTS
6.TOOLS, DIY AND OUTDOORS
7.WATCHES, SUNGLASSES AND ACCESSORIES
8.TV, AUDIO , VIDEO/ GAMING WEARABLES
 KEY RATIONALE

01 02 03

LIFESTYLE FASHION- WEARABLES- MOST

BRAND KEY CATEGORY PAGE VIEWS

Daraz created Dmart for groceries and Dmall Fashion showed the second highest Wearables showed the most page
for accessories. quantity sold in categories. views.

DRAWER can be positioned as a lifestyle brand. The online fashion market in Bangladesh is This shows e-commerce shoppers’
currently worth $598 million and it has the interest in lifestyle oriented
prospect to reach up to $1.24 billion by 2023. products
 ANSWER TO Q-02
(BRAND NAME AND TAGLINE)
 BRAND NAME

BRAND TAGLINE

DRAWER
A better everyday!

The name DRAWER itself refers to a storage space where someone would choose to
RATIONALE
keep their belongings

That is exactly how we envision this brand would be- a brand with lifestyle oriented
products where people would get the products they use in their everyday life. Daraz has
the tagline “Delivering Happiness” and the Drawer tagline resonates with the same
mission with the tagline “A better everyday”.

COMMUNITY-MOST
TRENDING
Drawer website will feature products
most sold and also “Hanger”
customer reviews on the products
FEATURED EVERYDAY.
BRAND POSITIONING
MAKING DRAWER A LIFESTYLE FIT BRAND
BUNDLES INFLUENCER ESTABLISH
OF JOY PICKS TRUST
Bundle pricing deals of same sort of Celebrity influencer top picks To establish the trust of best
products will attract more will be featured on what fashion quality products. Consumers
customers. products they are wearing. can chat directly about
measurements through a
chatbox. There will also be
moneyback guarantee offers for
damaged products.
 ANSWER TO Q-03
(PRODUCT SOURCING STRATEGY)
 HAVING A MANUFACTURING PARTNER
ALL CATEGORIES EXCEPT TV, GAMING WEARABLES

SOURCING STRATEGY-01

01 02 03

SELECT LOCAL HAVING AN ERP MODEL WITH TEST&REPEAT REVIEW

MANUFACTURING PARTNERS MANUFACTURING PARTNERS

RATIONALE: RATIONALE: RATIONALE:

Having local manufacturing partners can ERP Model can save costs and also Test and Repeat Suppliers to find out
help reduce cost of importing from reduce lead time in the supply chain the best fit.
overseas. Post Covid situations may hence resulting in faster deliveries.
increase import taxes too.
 GO FOR SELF MANUFACTURING
TV, GAMING WEARABLES

With quality being a pivotal factor here, DRAWER will take the approach of building a
manufacturing facility and directly producing the products(narrow portfolio), this
provides with the highest profit margins.

Hence, quality control is ensured.

ANSWER TO Q-04
PRICING STRATEGY
 PRICING STRATEGY
DRAWER SIMPLE

1. In this category consumers will find their necessary lifestyle needs at Competitive
pricing. Use price tracking tool to set competitive prices

2. Using the Geo-fencing technology the deals can be catered or customized

according to the shopping preferences for each products.

Daraz Retail Analytics can come into play here.

3. Using Bundle Pricing, consumers can get cheaper prices if they purchase in lots.

This will actually help the consumers as they will get all their lifestyle based products in
easy to get bundles.
 PRICING STRATEGY
DRAWER ADVANCED

1. We will be offering value-based pricing because products will be differentiated with

unique quality and premium price points.

2. On-peak and Off-peak seasons can be a good time to give discounts on products.

Daraz FataFati Friday Sales can also feature Drawer Products.

 ANSWER TO Q-05
(4 key USPs your products must have, so that we can differentiate them from
Competition with justification.)
 USP USP USP USP

Customer First Build trust Availability of variety Swift Delivery

Unity Comprehensive Search Accessibility Availability of essential
Everyone matters Engine Ease of delivery
Empathy & Kindness Fastest Delivery
 Global survey by Built Agency.com stated,
“78 percent of Americans (aged 18-64) agree that .”
online authentic reviews influence their purchases”

USP 1: BUILDING SHOPPING COMMUNITY

Consumers want a seamless, easy to navigate site that provides the right amount of
information to make a purchase decision. Ratings and reviews from customers usually
provide, an unbiased opinion. If the reviews include photos of their orders, it is more
likely to be considered authentic. An e-commerce shop that stays on top of trends,
offers tips and tutorials, and gives a platform for their customers’ voices shows that
these people are professionals that know their business (i.e. Amazon). These sites are
not just places to dump content, but rather a growing community that fosters
participation and loyalty.
 A survey conducted by Glorious Sun School of
Business and Management, Donghua University,
“51.2% respondents admitted the usefulness of the .”
shopping lies in a holistic shopping experience”

USP 2: COMPREHENSIVE LIFESTYLE CHOICE

Consumers in Bangladesh simultaneously exploring multiple shopping

categories and items in e-commerce platforms. The key satisfaction from
shopping thus stems from a comprehensive buying experience which will be
catered by ‘Drawer- a lifestyle brand’, an item for every one within your budget.
 In a ICMAB study, “46% respondents assessed the
credibility of a site based on the appeal of the overall
visual design.” .”

USP 3: ESTABLISH AUTHENTICITY

A key problem for consumers in e-commerce platforms is trusting the seller. Thus,
Drawer will focus to gain that trust in Bangladeshi consumers through a professional
display of information, legitimacy and investment in the Drawer brand. Keep the
category and information simple and minimalistic.

Verify authentic reviews internally and give a ‘green-tick’ sign to show that it's verified
and proven. Introduce ‘return policy’ and ‘hassle free return’ if product is not delivered
up to standard quality promised by Drawer. Most importantly, offer a swift and
‘convenient delivery hour’ option so that the buyer can receive the product at his/her
most convenient hour.
USP 4: VALUE SAVING FOR EVERY CONSUMER

By adopting, competitive pricing strategy, Drawer is creating value for every 1 TK spent by a
consumer. This is shown by the ‘Best-Seller’ or ‘Drawer-Most Chosen Item of the Month’ tag. The
Platform will also have items with assigned slightly different price points to similar products to
ensure items for every consumer despite varying budgets.
 ANSWER TO Q-06
(TARGETED SALES VOLUME IN A YEAR)
ASSUMPTIONS

Source:
http://www.guesswork.co/research/bd/ecommerce/companies/daraz.com.bd#stats
ASSUMPTIONS
Source: SmartInsights
 ASSUMPTIONS
Source 1:
https://www.similarweb.com/website/my.daraz.pk/
(Daraz Page Traffic)

Source 2:
Source 2: https://www.bazaarvoice.com/blog/the-
impact-of-covid-19-on-e-commerce-by-category-
updated-weekly/ (Global Page Traffic)
 WEIGHTED AVERAGE-TARGETED SALES CONSIDERING BEST AND WORST CASE
SCENARIO
Bags and Travel 741901
Fashion 3432061
Kitchen and Dining 321857
Sports and Outdoors 429504
Stationary and Crafts 225406
Tools. DIY and Outdoor 549563
TV, Audio, Video and Gaming 1709691
wearables
Watches, Sunglass and Jewellery 1364098.56
TOTAL 8774084.056

We took an optimistic approach that the page traffic will increase by 70 percent in next three years
and a pessimistic approach that it may increase by 50 percent or else. We then took an weighted
average of all possible scenarios.
 ANSWER TO Q-07
(WHETHER TO MOVE TO AN OFFLINE SALES CHANNEL OR NOT)
 We would prefer Drawer to operate in an online sales channel.

01 02

RATIONALE-01 RATIONALE-02
COST REDUCTION POST PANDEMIC EFFECT

Digital Supply Chains (DSC) can lead to a Shopping online is the new normal and
20 percent reduction of procurement 30% plan to shop more online in the future
costs and a 50 percent reduction in
supply chain costs across all industries

SOURCE: Digital Supply Chains: A Frontside Flip, Report SOURCE: PROSPER INSIGHTS AND ANALYTICS
FEASIBILITY
 FEASIBILITY
MAKING DRAWER A LIFESTYLE FIT BRAND

Get necessary customer A Lifestyle label from Daraz Ensure a pricing strategy Establish a community of
information from Hanger Review offering product categories that focusing on consumer lifestyle shopping enthusiasts who can
Section and Retail Analytics compliment each other. necessities and also the one communicate on one platform
time luxury products.

Use “test and repeat” product

sourcing strategy.