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Range of Service & Key Business Focus

Daraz sells a wide assortment of products on its website and these products has been categorized
systematically in a way that a customer can easily find his/her product. These categories are

1.

Men’s fashion

2.

Women’s fashion

3.

Phones & Gadgets 4.

TVs, Audio & Cameras 5.

Computer & Gaming 6.

Appliances 7.

Home & living 8.

Sports & Travel 9.

Beauty & Health 10.

Baby, Kids & Toys 11.

Grocery 12.

Miscellaneous Daraz is leading as the front-runner in e-commerce sector in Bangladesh and they strickly
follow some rules to be at the top all the time. Such as

No Fake Products:

Daraz offers its customers with the largest selection of authentic and brand new products at the highest
quality. Fake and duplicate products do not have entrants at its web store. According to them, it has
become their mission to offer only 100% genuine products in the original packaging to the consumer.

Safe & Secure Payments:

Whether the customer wants to pay cash on delivery or conveniently with one of Daraz’s pre

- payment methods e. g.

credit/debit card/Easypay or JazzCash

customers’ privacy is the

most important

factor to them and they keep the cusomers’ data confidential.

Free & Easy Return Policy:

Returns and replacements are easy and free of charge. Although there are few or no dependable data to
back this statement.

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E-Business Model

Daraz’s e

-business model is depicted below on a business model canvas

Figure: Daraz.com.bd e-business model CANVAS.

Drivers of E-Business adoption at Daraz.com.bd

There are several factors that are working as the driving force to adopt the e-business among
organization. These can be described as:

Perceived Benefit:

The internet usage is rising more and more in the market forcing organization to adopt internet
technology to tap that market where users are looking for products or services that are easily accessible
and convenient to consume.Daraz.com takes this benefit into consideration and now they are trying to
expand their business.

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Perceived Cost:

The cost for starting an e-business basically depends on the different software and its installation cost.
Since Daraz is an online-only venture, its main investments are focused on implementing e-business
solution into its business.

External Pressure:

External pressure involves factors such as political condition, government rule and regulations. While
starting the business, Daraz had it on their mind.

Management of Daraz.com.bd
Daraz has its first ever Bangladeshi country manager, Mr. Mustahidal Haque

serving as the managing director of Daraz Bangladesh Ltd. Their organizational hierarchy is depicted
below

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E-Business Revenue Model

As e-commerce is becoming very popular in Bangladesh, many international and national platforms are
emerging in the online marketplace. Daraz is one of the most popular sites in many countries including
Bangladesh, Myanmar and Pakistan. Below we can see the Business Model CANVAS of Daraz.com.bd:

Value Proposition:

Daraz is the biggest online shopping platform in Bangladesh.

They ensure the fastest delivery system

Easy and safe shopping environment

They have a very competitive pricing strategy

They provide 7-days return policy for their products.

Variety of products and services are available.

They use most advanced technology for maintaining their business.

Revenue Model:

Their revenue model is a mixture of Sales and Advertising

They accept cash on delivery, bKash, credit cards as their payment method.
Their biggest revenue stream comes from sales. They do not produce products but get sellers
commission from the partner companies.

They have both B2C and B2B customers.

They use Google AdSense, OpenX and Yahoo for advertising

Revenue Generating Strategy:

Daraz’s main strategy and also their USP that sets them apart from their direct competitors is

that where they sell and buy from. They buy products in a bulk so their each items cost is lower than
typical retailers and they also source their products from third party vendors. They

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do not always keep the products in their own inventory rather use suppliers inventory and collect
products form them when needed.

Product Categories:

Electronics

Gadgets
o

Cell Phones

Televisions

Fashion Accessories

Clothing

Household items

FMCG Products
Market Segmentations:

Demographic Segments:

They have products for men, women and children. Their products are differentiated by price and brands
to attract as much customers as they can.

Psychographic Segments:

Products are based on the lifestyles of the customers. Like: Computer and Gaming, Sports and Fitness,
Home and Living etc.

Geographic Segments:

They deliver products to most part of Bangladesh. Most orders are delivered within 3-5days in Dhaka
and 5-8 days for outside of Dhaka.

Market Structure:

Daraz is a joint venture of Rocket Internet and GMBH which is situated in Germany. They are the largest
venture incubator outside USA and China.
E-business Platform/Infrastructure

Today in digital Bangladesh, Daraza.com now has one of largest E-commerce platform which connects a
large portion of buyers and seller in a single platform. Daraz is a mall-style online

business which doesn’t sell its own product rather they work as an int

ermediary between buyer and seller. In a mall, customers can visit different shops and buy different
things from different shops. Daraz has virtualized this Mall-style business where customers can visit to

their preferred shops. So now customers don’t need

to walkthrough different shops to find their desire product, they can now buy their desire products
sitting at home by visiting daraz.com.

E-business Application services

Draz.com is providing a large online business platform for its suppliers and consumers so obviously its
use several application and soft-wares to manage its inventory, contact with suppliers and to keep
relationship with its customer. But as daraz.com is a fully web-based business, the soft-wares it uses for
its business is a crucial part of its business. So they were unwilling to disclose most of the name of the
soft-wares they use for their online business. But they have disclosed the name of the few soft-wares to
us and described how their software helped them to continue their daily operation.

Enterprise resource planning (ERP):

Daraz.com basically use oracle E-business software application in most of its operation such as for its
finance and portfolio management activities

To integrates all of the software including CRM and SCM, Daraz.com use oracle Enterprise Resource
Planning Cloud as an enterprise resource planning software. In a following way ERP helps Daraz.com:

It makes daily operation more flexible and less time consuming.

It’s make
inventory management more efficient

It helps to make effective relationship with suppliers and consumer

It helps to create a more relevant financial data and ensure better portfolio management.

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Customer Relationship Management

In an online business there is little direct interaction between customers and the business

organization. That’s why online business like Dara.com needs different types of software to

keep track of their customer activity and maintain relationship with them. Daraz.com is always concern
about their customer satisfaction. So CRM activity of daraz .com is explained below:

1.

Customer touch point:

customers can easily communicate with daraz.com by visiting their websites. In their website there is
contact information given including their phone number, Email address and their face book page.
Customers can also send their message via messenger and they are very responsive.

2.

Data stores and data mining:

to keep information of customers they use Microsoft access which is very popular software to record
and retrieve data. Microsoft access helps them to record data about a customer order. They can also
retrieve data about customer order any time through Microsoft access.
3.

CRM analysis:

To track and analyze customer activity daraz.com use Google analytics. Goggle analytics is software
developed by Google it track and provide reports about particular websites traffic. By Google analytics,
Daraz can know how often a customer visits their website and how long they stayed on the websites.
They can also know which web page or shop is performing poor through Google analytics and based on
that they can focus on the shop which is performing well and formulate their strategy. Google analytics
is a free of charge; it also takes charge for additional features.

Supply Chain Management

Daraz.com has several suppliers for its mall business. Most often they directly approach to supplier to
make contract or deal. Daraz.com basically has three ways to deal with suppliers:

Pick-up: In this way Daraz.com make a contract with its supplier for a certain volumes of product to be
displayed on their websites. When the customers ordered those products, Daraz will informed the
supplier and the supplier will deliver their own product. For this service daraz will charge some
commissions.

Drop-off: Drop-off is almost similar like Pick-up. But in here the product of

supplier’s

temporality stayed on the Daraz ware house and its daraz who deliver its supplier product. For this
Daraz charge certain delivery fee.

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Consignment: Consignment is where Daraz buys a bulk of product from its supplier and then resale it to
the end user. Most of the products that they buy in bulk are cosmetics products like soap, shampoo, and
lipstick and skin lotion. They also buy toilet cleaner and dishwasher in a large volume.

IT use for E-business application

Internet:

Daraz is an online business organization so there is no doubt that internet connection is most important
thing for its business. Like many other company it has its own server to run its website. Daraz is fully
internet based business. Most often it interacts with its customer and supplier through internet. Daraz
has its own Facebook page, twitter to broad its internet world. According to BTRC there is 80 million
internet users in Bangladesh so internet is a great source to grab a large number of consumer and
Rocket internet has seized the opportunity by establishing daraz.com which provide opportunity to the
general public to receive mall style services through internet.

Extranet:

Daraz warehouses and offices are located in different places across the country. To connect with other
offices and its headquarter Daraz use extranet connection. Extranet also help to connect with its
supplier and consumer. The extranet is used by LAN along with fiber optic cable. Through extranet daraz
can transfer its information about inventory, financial data and market data to its other offices and its
suppliers.

Intranet:

To foster communication among the employees Daraz also use intranet within the organization.
Intranet software like Microsoft SharePoint helps the employees of the organization to work efficiently
while continuously communicating with each other. Some of the employee also use share it or blue
tooth connection to transfer small files,

The web technology and software applications:

Daraz.com is a modern and innovative web business which is not just a information portal used by
web.1 technology but a modern websites where sellers and buyer could interact, buyer could purchase
by choosing any payment method and any one could open an account in daraz.com. So obviously
daraz.com has used web 2.0 technologies which allow its website to be more flexible and user friendly
among the consumers The advantages for daraz.com using web 2 technologies:

a)

Facilitate collaboration:

Web 2.0 technology not only allows the users of daraz.com to obtain information from the webpage
but also able to send message and purchase items from the website. It has given more flexibility to end
users.

b)

Available at any time at any place: b

ecause of web.2 technology daraz.com is available at any time at any place. A customer can access to
the web page of daraz.com at anytime from anywhere and purchase the desire item.

c)

Link to variety of media:

Through web 2.0 technology daraz.com was able to create a link to its website to other social network
like Facebook, twitter and Instagram. People can find its contact information and link of Facebook page
by entering into the website.

Web content management strategy:

Daraz.com is now most popular online mall-shop in Bangladesh. A great number of people purchase
their desire product from daraz.com daily and A great number of supplier

deliver their products to daraz.com on daily bases. That’s why

they have to update their web content daily. To manage the web content daily, there is a special team
who update the content daily on the bases of customer and supplier preference and this team is called
D-force. When a contract is made with a supplier or a product is delivered to Daraz warehouse, the D
force team immediately updates the information to Dares websites. The team is also concerned about
the speed and responsiveness of the website.
Digital Strategy for E-Business

E-Business Strategy:

Strategies are the techniques to run or accomplish some properly. In the context of business, each and
every business needs proper strategies to accomplish their specific goad in a right way. Like that Daraz is
a online business. There is a huge difference between the strategies of an online business and a physical
business. This online business is called E-Business and in the sector of E-Business Daraz have some
different strategies. These are:

Digital Marketing:

As an online business the first and foremost strategy to marking the products Daraz adopts digital
marketing where they use different online platforms like google ads, Facebook, YouTube and other
popular platforms. They regularly update the information about their product and other deals on these
platforms to let their customer updated.

Mobile Apps:

They have a specific mobile app. This app is useful for both the sellers and the buyers. By installing this
app customer can get all the updated information on their hand at any time at any place and sellers can
know about the demand of their products which are sold through daraz and manage their inventory
based on the demand.

Friday Sell:

Daraz organizes a different campaign on some specific Fridays where they offer some specific items of
products with a huge discount to the customer. Their main purpose of this campaign is to attract the
customer and make them loyal to their services by providing them good quality products with a low
price.

Social Media:

Most of the people in Bangladesh are familiar with the social media. Daraz use these social media like
Facebook, YouTube etc. to target the customer and make their strategies by knowing the trends of their
customer.

Website Design:

The website of Daraz is fully responsive. They have designed their website in such a way so that the
users can easily get all the things they are searching in the easiest way. In their website they have put
both the options for Bengali and English languages. They have made the categories in their website user
friendly and attractive to their customer.
Valuable:

Building brand value, trust, and loyalty among the consumer and seller makes Daraz more valuable than
other e-business in Bangladesh.

Enduring:

Most of the time Daraz focuses on long term goal. They ensure that each and every customer of Daraz
will be their loyal customer. They ensure this long term goal by providing quality goods, goods with
longevity, and service after sells.

Market Segment:

Market segment is the most important matter which should be considered at the time of any kind of
product marketing decisions. If a firm can segment their products properly that firm can easily reach to
their goals. Daraz can successfully segment their selling products according to brand, age, income,
usage, location etc.

E-Channel Structure:

Daraz is running their business on the basis of e-mall strategy where there are different kinds of virtual
store fronts. Different kinds of sellers or product suppliers use those store fronts to sell their product
through Daraz. Daraz gets commission by becoming the medium between the seller and the supplier of
different brand. Daraz conducts their business through their websites, Facebook page, telephone etc.
They have physical offices in different locations to conduct other operation related to their business and
19 warehouses to maintain their inventory. Daraz adopts multi-channel process for the payment
method and receiving order. They take order through Facebook, websites. After receiving the delivery
they confirm the deliver over the telephone. Customer can pay the product cost through credit card,
debit card, bkash, and delivery on cash. Daraz has a contact with a courier service called Pathao to
deliver their products to the custome.

Analysis of E-Business Strategy:

SWOT Analysis

PIC…

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Competitive Threat:
As Daraz is the first international online market platform, it has a small range of threats.

Till now Daraz doesn’t get any strong customer base from the rural area. They are try to

reach to them they have formed some specialized team to educate the rural people on how to use their
app, website and order products. The teams also educate the suppliers on how

to sell their products by using Daraz’s online platform. They are thinking their present

delivery time as their threat because they think other online market platforms are delivering their
products less than 3 days. Now Daraz is trying to lessen their delivery time to 1-2 days.

E-Business Security:

Five IT Security Risk:

Corporate Data on Personal Devices:

Whether an association disperses corporate telephones or not, classified information is as yet being
gotten to on individual gadgets. Versatile administration instruments exist to constrain usefulness yet
securing the provisos has not influenced it to the need to list for some associations.

Third-party Entry:

Cybercriminals prefer the path of least resistance. Target is the poster child of a major network attack
through third-party entry points.

Insider Employees:

Daraz has its own IT team. This IT team can be a threat for their data base and overall IT system. They
can involve in any kind of fraudulent for the benefit.

Smartphone Vulnerability Threat:

These days, representatives utilize a cell phone to impart business data and direct employment-related
exercises. Daraz workers are the same as them. They have their own worker portable application from
which they can lead their business-related exercises.

Retail Data Hacks:

Now a

days’
 online hacking is increasing. Cybercriminals bring out customers from the websites by phishing
technique and sell that information in the black market. Daraz has surveillance team who always look
after their website so that no cybercriminals can attack their website.

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Conclusion

It was a great experience for us to be able to visit an office dedicated to e-commerce operations. We
were greeted with people who are graduated from the same business school that we belong, and the
manager with whom we have spoken to

also graduated from NSU School of Business & economics. The D-Force team employed by Daraz to
educate their stakeholders (e. g.

customers, suppliers etc.) regarding how to use the internet to shop online - is truly remarkable. In a
third world country like ours

where 67.245 million* people use the internet or has accessibility to the internet, campaign like D-
Force is revolutionary and appropriate steps that aligns the idea of familiarizing the mass people with
the true potential of the internet and technology.

References

How Daraz BD has revolutionized purchasing habits. (2017, September 25). Retrieved December 10,
2017, from https://www.daraz.com.bd/blog/2017/09/13/daraz-bd-

revolutionizes-online-shopping-habits/
An inner look at e-commerce giant: Daraz. (2015, November 23). Retrieved December 10, 2017, from
http://www.thedailystar.net/lifestyle/check-it-out/inner-look-e-commerce-giant-

daraz-176806

Pakistan's first FMCG e-commerce solution with daraz.pk. (n.d.). Retrieved December 10, 2017, from
https://www.unilever.pk/news/press-releases/2014/unilever-launches-

pakistans-first-fmcg-ecommerce-solution-with-daraz-pk.html