Marketing Research:

Ecommerce Industry in
Pakistan
(daraz.pk)
By sir
Sooraj
Kumar
Problem Definition

Slow pace of online shopping trend in Pakistan

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
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.
 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 customer@daraz.pk for any queries or concerns.
Secondary Data Analysis
Daraz.pk
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
Secondary Data Analysis

Market distribution:
Orders placing from remote geographical locations

Partnership with TCS

Secondary Data Analysis

Fake orders:
Major problem at time of establishment

Curiousness among people

Blocking customers placing regular fake orders

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
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

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

Research Design

Exploratory research i.e. to get better understanding and insight of

the problem and know the viewpoint of customers
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.
Sampling

Sample size: 150

Extended sample size: 170

Research method: Quantitative

Sampling Method: Simple Random Sampling

Research Data Analysis
Research Data Analysis
Trust Factor:
70 66.66666667

60

50

40

30

20 16.66666667

10.66666667
10

0
0
Don't trust at all To some extent Trust enough to purchase Fully trust
Research Data Analysis
Online shopping purchase trend:
45

40
40

35

30
30
28

25

20

15

10
8

0
Once a week Once a month Once a year More than once a year
Research Data Analysis

Site Preference:
60

52.66666667

50

40
Daraz.pk

Kaymu.pk
30
26.66666667
Dealstoday.pk

20 17.33333333

10

0
1
Research Data Analysis
Payment method preference:
80

70

60 Bank Draft

50 Cash on
delivery

Debit card
40

Easy paisa

30

20

10

0
Bank Draft Cash on delivery Debit card Easy paisa
Research Data Analysis:
Traditional v/s Online (Rating)
Quality (Traditional):
60

52.66666667

50

40

29.33333333
30

20
16

10

0
Highest approval Lowest approval High low Highest disapproval
Research Data Analysis:
Traditional v/s Online (Rating)
Quality (Online):
35

31.33333333 31.33333333

30
27.33333333

25

20

15

10.66666667
10

0
Highest approval Lowest approval High low Highest disapproval
 Research Data Analysis:
Traditional v/s Online (Rating)
Price (Traditional):
50

45.33333333
45

40
40

35

30

25

20

15
11.33333333
10
10

0
Not at all reasonable reasonable Reasonable to some extent Most reasonable
Research Data Analysis:
Traditional v/s Online (Rating)
Price (Online):
40
38

35

30
28

25
22.66666667

20

15

10.66666667
10

0
Not at all reasonable reasonable Reasonable to some extent Most reasonable
Research Data Analysis:
Traditional v/s Online (Rating)
Convenience (Traditional):
45
42

40
36.66666667

35

30

25

20

14.66666667
15

10
7.333333333

0
Highest approval Lowest approval High low Highest disapproval
Research Data Analysis:
Traditional v/s Online (Rating)
After-purchase service (traditional):
40

35.33333333
35

30 29.33333333

25 23.33333333

20

15
12

10

0
Highest approval Lowest approval High low Highest disapproval
Research Data Analysis:
Traditional v/s Online (Rating)
Delivery Facility (Online) :
60

53.33333333

50

40

29.33333333
30

20

14

10

3.333333333

0
Highest approval Lowest approval High low Highest disapproval
 Research Data Analysis:
Traditional v/s Online (Rating)
Payment facility (online):
45
42.66666667

40

35

30
26.66666667
25.33333333
25

20

15

10

5.333333333
5

0
Highest approval Lowest approval High low Highest disapproval
Research Data Analysis: Scope
for Online Shopping in Pakistan
Do you think there is scope for online shopping in
Pakistan?
90
84.66666667

80

70

60

50
Yes
40 No

30

20
15.33333333

10

0
1
Online Shopping Rated by
Respondents
50

45.33333333
45

40

35

30

24.66666667
25

20
16
15 13.33333333

10
7.333333333

0
1 2 3 4 5
Research Data Analysis
Respondents asked if they will recommend online
shopping:

90

79.33333333
80

70

60

50
Yes
No
40

30

20.66666667
20

10

0
1
Research Data Analysis: Likes
and Dislikes about Online
Shopping
Likes Dislike
One click away Lack of quality assurance
Variety Size variation
Time saving More options d/f for decision

Feasibility Payment issue

Shipping charges
Convenience
No after-sales service
Energy saving
Delayed deliveries
On time deliveries
Delayed confirmation
Easy to search
No guarantee
No responses
Research Data Analysis: Advantages
and Disadvantages about Online
Shopping
Advantages Disadvantages
Time saving Quality risk
Convenient Bargaining
All under single website Fake/unoriginal products
Review options Account hacking
Doorstep delivery Frauds and fake sites
Payment method Customer service
Affordability Do not receive the product as it is
showcased on sites
Availability
Mass market can be targeted
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
Results and Recommendations
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.
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.
Results
Lack of a dedicated online payment gateway such as
Paypal.
Bottlenecks 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.
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.
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.
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