Briefly tell us about the impact Daraz is making in the online retail market in Sri Lanka?
Daraz is the largest e-commerce platform in Sri Lanka providing users access to over 5 million products across more than 40 categories including furniture, lifestyle goods, groceries, health and beauty, home appliances, pet supplies, fashion, computers, laptops and much more. Moreover, the platform provides Sri Lankan merchants, especially small and medium sellers and women entrepreneurs the opportunity to take advantage of its superior technology to access new consumer markets more conveniently and costeffectively.
The company has made a considerable investment in Sri Lanka and we have created over 5,000 direct and indirect employment opportunities around the island thus far. Our impact as an e-commerce platform, therefore, spans across uplifting communities, embracing diversity, educating and supporting entrepreneurs and helping the nation ride the wave of the digital economy unreservedly.
What sets Daraz apart from its competitors?
We pride ourselves on being able to keep up with changing customer trends to offer the most relevant products, solutions and content while connecting with them meaningfully. Placing priority on listening to our customers and scanning insights and data on consumer behaviour to craft the best-suited solutions sets us apart as a fast-evolving e-commerce operator.
The superior Alibaba technology is another key differentiator that has given the platform its cutting-edge performance capabilities and comprehensive e-commerce eco-system that leverages new technologies of network coordination and data intelligence.
How is Daraz using this tech to power local businesses, especially SMEs, around the island?
Primarily, the technology connects buyers with sellers of goods, regardless of geographic barriers and other economic barriers that stand in the way of commercializing their enterprises. This allows any seller around the island, even in rural areas to find a sizable market for their goods through more cost-effective and convenient means. At a more advanced level, the technology also facilitates advertising, marketing, logistics, and finance to the users and we keep on expanding this ecosystem to accommodate the evolving needs of our sellers and buyers.
Significantly, from the base of more than 50,000 sellers on Daraz, almost 80% are local sellers, out of which close to 50% are small and medium-sized businesses. We have also carved out a dedicated space for women entrepreneurs on the platform, with the aim of enhancing the opportunities available for Sri Lankan women to contribute to the economy while overcoming barriers that conventionally limit them from participating in economic activities, especially in rural parts of the country.
How is Daraz helping consumers around the island have access to an assortment of products at more affordable/discounted prices – especially those that live outside urban areas?
Some of the key focuses of Daraz include continuously investing in technologies that enhance our logistics applications, improve customer experience by fulfilment capacity, and experimenting with Fintech. Our order fulfilment process involves warehousing facilities that allow us to store the fast-moving, more popular products for faster accessibility and delivery. Our large seller base is a key strength and adds a major dimension to the product assortment and choice. Minimization of operational costs through advanced computing and networking technologies for maximum operational efficiency enables discounted prices on the goods sold at Daraz. This way, we are able to provide the best deals and prices on a wide range of products to customers who do not live in proximity to urban shopping hubs and would not otherwise have access to such an assortment of products on one platform.
Our strategic partnerships with leading banks in the country provide further leeway for buyers in terms of credit and debit card discounts and easy payment plans for purchases on the platform while Daraz vouchers give them a reason to keep revisiting the app for added savings on their repeat purchases.
Tell us about your investments in local tech startups, Daraz Labs and Koko?
We believe there is much more we can offer customers in terms of convenience and meeting their ever-evolving needs, and have made significant investments over the years in order to achieve this.
Our fintech product KOKO is a good example of a start-up that came to life through Daraz Labs. A South Asia-focused buy now, pay later platform, Koko aims to address the increasing demand for easy credit solutions amid low credit card adoption and penetration. The platform allows customers to convert a payment into three interest-free instalments and since its roll out in August 2021, 0.6% of the Sri Lankan adult population has already adopted Koko as a preferred payment solution. With over 90,000 registered users and close to 1000 merchants onboarded to the app so far, the prospects for the solution within the region look positive and we are hoping to roll this out in Pakistan and Bangladesh before the end of the year as the opportunity for this type of technology in South Asia is boundless.
What are your plans for Sri Lanka?
Daraz is now a digital lifestyle destination. Our platform connects over 50,000 Sri Lankan entrepreneurs with over three million Sri Lankan online shoppers on a thriving digital marketplace. There is still a vast untapped e-commerce opportunity here and we are working towards realizing the full potential of the digital economy. Daraz has undertaken several initiatives to empower local communities including sellers, women entrepreneurs, and online shoppers. In line with the national vision for economic revival and growth of the digital economy, Daraz will focus on building an ecosystem that will support job creation within the industry, while building better accessibility for all Sri Lankans. Seller and consumer education, expanding financial inclusion, and activating rural communities will be some of our top focus areas in the coming years.
How is Daraz making a difference during the unfolding economic challenges?
Despite uncertainties and volatility in the macro environment, Daraz has been consistently delivering on its promise of uplifting communities through the power of commerce. Daraz is providing product choice and access at a time when possibilities seem limited. Sellers on Daraz still continue to access markets and buyers through cost-effective means. Lifestyle choices are still made possible on Daraz through the diverse product range at differing price points. Throughout crises, the challenges of Covid-19 followed by the economic woes of the current times, Daraz has continued to connect sellers and buyers through its leading-edge technology while being a reliable source for people to meet their daily and lifestyle needs. We will continue to mobilize possibilities despite the hard times and make way for Sri Lankans to explore, experiment and discover new possibilities on the Daraz app.