Project Report on Daraz

Submitted By Submitted To
Parina Roka Magar Lecture: Mr. Sudan Chudali
Nisha Pokhrel Subject: Principle of management
Sumitra Kishan Universal college, Santinagar
Samikchya Kharel
( BBA 1st semester )

Date of submission: 30 April, 2021

Logo of Daraz Nepal
Contents Page no
CHAPTER-1: INTRODUCTION
1.1 Background………………………………………………………………………………………………………………1
1.2 Marketing Concept of Daraz Nepal…………………………………………………………………………..2
 Objective………………………………………………………………………………………………………2
1.3 Marketing Mix of Daraz Nepal………………………………………………………………………………….3
 Product…………………………………………………………………………………………………………3
 Price……………………………………………………………………………………………………………..3
 Place…………………………………………………………………………………………………………....3
 Promotion…………………………………………………………………………………………………….4

1.4 E-commerce and its concept…………………………………………………………………………………….5

CHAPTER-2: DATA ANYLYSIS, RESULT AND DISCUSSION

2.1 Daraz Success From 2019 to 2020…………………………………………………………………………….6
 Daraz- 2019 Statistics……………………………………………………………………………………7
2.2 SWOT Analysis of Daraz Nepal………………………………………………………………………………….8
 Strength……………………………………………………………………………………………………..8
 Weaknesses………………………………………………………………………………………………..8
 Opportunities………………………………………………………………………………………….….8
 Threats…………………………………………………………………………………………………….…9

CHAPTER-3: RECOMMENDATION, CONCLUSION, REFERENCES AND

QUATIONNARIES

3.1 Recommendation…………………………………………………………………………………………………..10
3.2 Conclusion……………………………………………………………………………………………………………...11
3.3 References……………………………………………………………………………………………………………...12
3.4 Questionnaires………………………………………………………………………………………………………..13
 Acknowledgement
We want to thank our God that we have finished our project work properly. We also want to thank our
course instructor Mr. Sudan Chudali who helped us to finish our project report. His valuable advice,
direction and teaching helped us to forward with the project report and finish it. It is impossible to do the
project without our course instructor’s direction. Also we want to thank to daraz as they helped us to know
us about some of the information and their websites information and practical experience from buying from
daraz help us to know more about daraz.

Finally I want to take a moment thank each one who has directly or indirectly helped us to accomplish this
project.

Team Daraz

Universal college, Santinagar

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CHAPTER - 1: INTRODUCTION

1.1 Background

Daraz Nepal, established in 2012 had become the highest online store in Nepal at the present time. The
biggest E-commerce company Alibaba group obtained Daraz for an unnamed deal in May 2018. Daraz has
become an important part of Alibaba’s global strategy to be in the global market and to target 2bn
consumers. It can be considered as the win to Alibaba’s globalization strategy. As regards the opportunities
in the field of online business area, the widest area for the e-commerce business in the world is in the South
Asia where Daraz has dig its place in the emerging market with a fast growing retailers in five countries.
They are operated in Nepal, Sri Lanka, Pakistan, Bangladesh and Myanmar. It has got 15 million customers
per month all around the world in South Asia and aimed to penetrate the global market with its technology.
Daraz was previously known as Kaymu. This is founded by Rocket internet ventures which was led by
Ahmed Khan as its MD in Asia and were founded in 2012. Daraz online presence in Nepal since 2014, when
it was introduced by kay-mu.com in 2016, due to the digitalization of electronic commerce, they decide to
merge daraz and kaymu under the new entity to the Daraz group of Alibaba. Alibaba group buys an E-
commerce site which brings both seller and buyer together. Daraz has to set online market place in various
countries such as Pakistan, Nigeria, Morocco, Ghana, Bangladesh, Afghanistan, and in the Middle East
including Nepal too.

Moreover, it has 30,000 sellers and 500 brands across the region and offer 2.5 million products. It consists of
diverse quantity of products for customers which are household goods, beauty, fashion, sports equipment,
and grocery items. Kaymu was the first online shopping App’s which launched in Nepal in May 2014 and
later changed to Daraz Nepal.

The mobile application in Android and IOS application has made it easier and these applications had been
developed for making buying and selling online faster, easy, popular and user friendly. Daraz in Nepal was
managed by Mr. Rajiv Amatya as overseeing chief and Mr. Laxam Basnet as a human asset administrator.
Recently Daraz Nepal has done the biggest sale by organizing 11-11 Daraz sales which was quite successful
and profitable. Currently daraz has 250,000 plus products with more than 100 plus product categories and
every day 75000 people visit its websites. Every month 500 new sellers are given education through their
university. It provides job opportunities to more than 5000 jobless people by educating them in their own
university. Recently, it introduced an online payment system partnering with major banks of Nepal.
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1.2 Marketing concept of Daraz Nepal

Daraz always focuses on what customers want and what all customers will satisfy. Daraz also provides
different brands and price tags to all customers, which customers can easily pick their product in terms of
what brand they are looking to prefer from the online portal. For customers they deliver their product to all
customer locations within their targeted area and place. After connected with Alibaba group holding
limited, Daraz change their price and priorities. They start to take the feedback and comments from the
customer which creates their social sites more interactive and easier for the customer to find out the things
they want from the website by studying the comments and reviews. Daraz take different steps on how they
can improve their brands, online service etc.

A customer's purchasing conduct is affected by social, individual, and psychological factors. Buyer conduct is
a piece of human conduct and by studying past purchasing conduct, advertisers can appraise how shoppers
may be-have later when settling on buying choices. In addition, it aims to provide ecofriendly technology
through e-commerce and boost trade and enhance internal and external trade.

To achieve the goal, mission and to satisfy the vision, there are some objectives to be fulfilled. Daraz is
determined to expand its viability and productivity by refilling the customers shopping experience.

 Objective

• To identify the growth

• To identify the competitors and their threats.
• To study and understand the sustainability of the competitive market and
the exiting market.
• To understand the marketing policies
• To examine online and offline activities done for the endorsement way by
the Daraz Nepal.
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1.3 Marketing Mix of Daraz Nepal

It comprises of 4 important factors of a company with what any company can analyze their competitive
advantage in the market. The factors are known as the 4ps
 Product
 Price
 Place
 Promotion

 Product:
Daraz Nepal basically does not generate any product. It is an online marketplace where different types of
sellers sell their product. Customers can purchase their desired products from daraz. They can find it in
various categories like Men's Fashion, Women's Fashion, Phones & Tablets, TVs, Audio & Cameras,
Computing & Gaming, Appliances, Home & Living, Sports & Travel, Beauty & Health, Baby, Kids & Toys ,
Grocer's shop, Other Categories. Customers will find all these categories mentioned above in a column in
the website. They can search their desired products in a search box in the website. Daraz Nepal sells all
these products of different sellers by charging different commission rate to the sellers.

 Price:
Daraz Nepal does not set any kind of price. It gives prices based on the prices given by the sellers. The
prices of the same products in Daraz get different sometimes, because of the price set by different sellers.
The sellers sometimes give discounts on the prices of their products.

 Place:
The place of Daraz Nepal is completely virtual or internet based. Daraz sell all the products through its
website. Daraz does not sell any product in any regular type shops. The web address of Daraz, which is
“www.daraz.com.np” can be considered as the place of Daraz Nepal.

 Promotion:
Daraz Bangladesh Ltd. does various types of activities for promotion purposes. They mainly focus online for
their promotion. They are regularly active on the social media sites like Facebook and Twitter by showing its
advertisements there. They also give a lot of TVC’s on the Youtube. Daraz also preserved its personal email
database. So, that they can reach millions of customers by sending emails to them. They also maintain a
phonebook database of the customers. They send SMS to the customers to reach them and do their
promotion.
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1.4 E-COMMERCE AND ITS CONCEPT

E-commerce is commerce done through Internet technologies which means presale and post-
sale activities. Varieties of businesses around the globe have introduced an electronic
commerce portal as their operations, looking after the different merits that the online
marketplace can provide.

E-commerce is commerce done through Internet technologies which means presale and post-
sale activities. Varieties of businesses around the globe have introduced an electronic
commerce portal as their operations, looking after the different merits that the online
marketplace can provide.

The three major consideration of variables as sources of the strategic value of ecommerce are
‘‘operational support" which measures how e-commerce can reduce costs, improve customer
services and distribution channels, provide an effective support role to operations, support
linkages with suppliers, and increase the ability to compete. "Managerial productivity"
defines how e-commerce can be taken out to access information communication in the
organization, and improves the productivity of managers. Finally, "strategic decision aids"
defines how e-commerce can support strategic decisions of managers, support, provides a
means to use generic methods in decision-making, improves cooperative partnerships in the
industry, and provide information for strategic decisions. It affirmed that more than ten e-
commerce benefits for both buyer and seller. Such as cost savings and speed in selling and
purchasing, exposure to new customers (global reach), convenience and transparency to
users, the better quality of product/service (global reach), reduce the need for office space,
and fewer resources required.
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CHAPTER-2: DATA ANYLYSIS AND DISCUSSION

2.1 Daraz Success from 2019 to 2020

Daraz has, without a doubt, created a shift in the lifestyle for both businesses and customers
alike. Buying anything without the hassle of a salesperson and getting it delivered to your
doorsteps, I mean what’s there not to love? From customizing user experience by
incorporating AI, creating jobs, launching card pre-payment – Daraz has been covering all the
milestones that lead Nepal to a digital era. 
Their statistic really shows how much we as a country have become accustomed to the world
of e-commerce.

 Daraz 2019 – Statistics

This year alone the site had 339,069 visitors and about 1,239,940 total orders. Moreover,
3,062 sellers successfully sold their items. The majority of these figures can be seen owing to
the recent 11.11 campaign. The second rendition of this shopping spree took place on
November 11 as the previous year. Not only that, the 2nd Daraz 11.11 saw more than 3.5
Lakh users registered in a single day. Now that’s more than double of what it was in 2018’s
11.11.
Daraz’s Managing Director, Lino Alhering said that the campaign broke all records for Sale
Day. They received almost 50,000 orders within those 24 hours. The team even went on to
organize another campaign named “12.12” after the modest success of the former.
The statistics clearly show the meteoric rise of Daraz in the past couple of years. This is
mainly due to the fact that the company has always looked forward towards improvement.

In 2019 alone multiple upgrades were introduced in Daraz. These upgrades include pre-
payment options through Debit/Credit card; better review and rating system including a
feature that allows direct chat with the seller in real time called instant messaging; in-app
games and much more.

In addition to all these, Daraz has also invested in improving its infrastructures. By
establishing its own logistics unit called Daraz Express (DEX), along with employing more than
300 personnel, the company really hopes for good days in the future too.
With such a huge upgrade since 2018, it’s no wonder that the company’s number of sellers
and orders have increased by 200% and 270% respectively. As per their data, Daraz currently
hosts 100, 00 plus users daily. And along with that, delivers more than 1.6 Lakh packages all
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over Nepal each month. The upgrades that Daraz made last year will certainly help them
achieve their aim of increasing these figures in 2020.
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2.2 SWOT Analysis of Daraz

The internal and external factors are explained in SWOT analysis table below:

 Strength
 High security
 High branded and new product
 Good relationship with partner
 Feasible modes of payment method
 Strong collaboration among department
 Easy and free register
 Fast delivery

 Weaknesses

 No refund in specific product

 Low brand recognition
 High turnover rate
 Low profit margin
 Operates in few area outside of capital
 Lack of IT expertise

 Opportunities
 Flexible delivery hours
 Growing ecommerce sales
 Rapid growth in mobile user and internet user
 Digital payment system
 New trends
 Easy accessibility for global market
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 Threats
 Security issues
 International competitors (Amazon, eBay)
 Rise in the online retailers
 Political instability
 Low coverage area of internet in the developing cities
 Upcoming of native competitors
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CHAPTER-3: RECOMMENDATION, CONCLUSION, REFERENCES AND

QUATIONARRIES

3.1Recommendation

As Daraz is already a leader in online retail Nepal there is not much to recommend them but
still they have the scope to do some good things which added value for the business and
customer is the long run. Some of the recommendations are:

 Daraz can have some more clear policy of contracting with seller
 Also posting item on daraz need a large verification and long time, this is
a problem for seller. So more quick response needed in terms of posting item on their
sites
 Daraz turnover rate is high so more permanent employee need to be
Increased as well as more facilities to employee need to be given.
 Credit sales need to be increased also installment payment need to be
increased
 Focusing on sales over rural are needed for the survival of the long run
and expand the business.
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3.2 Conclusion

It can be concluded that Daraz need to focus age group between 16-35 years mainly
whenever adding the product and while promoting. Daraz should focus on Gadgets, fashion
product, and electronic appliances more. They should introduce good policy to compete their
competitors and need to put more effort to improve time of delivery. They need to integrate
secure digital payment to all their client. International branded products could attract more
customers who are used to premium goods. Since Daraz is an open platform for different
sellers. Providing the quality service and quality product can be other challenges that the
company should focus.

Daraz Nepal is one of the largest e-commerce platforms in Nepal. It has made its status as
online leader market in Nepal. Daraz have created different opportunities for new graduates.
Daraz believes that the customer satisfaction is the key for the success of e-commerce in
Nepal. Daraz has been consistently working on establishment of well e-commerce site. It also
offers frequents promotional offers or events like 11:11, Black Friday sale, etc. Although,
Daraz have biggest e-commerce market in Nepal but it is still lagging to capture the market
that the e-commerce site should have.
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3.3 References

1. https://en.wikipedia.org/wiki/Daraz
2. https://university.daraz.com.np/course/learn?id=1202&type=policies&login=skip
3. https://www.daraz.com.np/
4. https://www.nepjol.info/index.php/JNBS/article/view/28184/23226
5. https://www.gadgetbytenepal.com/daraz-data-2019-2020/#:~:text=Daraz
%202019%20%E2%80%93%20Statistics,sellers%20successfully%20sold%20their
%20items.&text=Not%20only%20that%2C%20the%202nd,it%20was%20in%202018's
%2011.11.
6. https://www.nepalitelecom.com/2019/11/daraz-11-11-breaks-records-nepal.html
7. https://www.daraz.com.np/products/facts-of-nepal-2019-i103428577.html
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3.4 Questionnaires

1. Can you please explain what an online marketplace is as well as Daraz's business model?

2. What are the registration processes for an e-commerce business in Nepal?

3. What are the legal obligations Daraz must follow to operate its business in Nepal?

4. How has the Consumer Protection Act affected the business of Daraz?

5. There are still some buyers who are reluctant to shop online. What are the strategies
Daraz is adopting to acquire those customers and retain them?

6. What is the company doing differently to contribute towards the growth of ecommerce in
Nepal?