Backed by Alibaba’s technology, Daraz has significantly transformed the e-commerce landscape in Sri Lanka, and despite the economic downturn in 2022, the company is now focusing on recovery and growth for major retail brands in the country by adapting to consumer trends and expanding its offerings, avers Oshan Ranatunga, Chief Commercial Officer of Daraz Sri Lanka. In this interview, he reflects on Daraz’s innovative strategies to harness the emerging opportunities to position Sri Lanka for economic growth through e-commerce.
Recent years have seen Daraz revolutionize e-commerce in Sri Lanka. What lies ahead for the industry?
Leveraging Alibaba’s technology and expertise, Daraz has built an impressive online presence, revolutionizing Sri Lanka’s retail industry and commerce, and the outlook for e-commerce is very positive. The recent Daraz-SLASSCOM island-wide survey results indicate that e-commerce is youth-driven and widespread across Sri Lanka. E-commerce is not confined to urban areas. Most online shoppers are from outside the Western Province.
Undoubtedly, the 2022 economic crisis led to economic contraction and slowed e-commerce growth in Sri Lanka. However, retail is slowly recovering, enabling e-commerce to leverage earlier growth and catapult once again. Many people are transitioning from brick-and-mortar to e-commerce for new opportunities.
Sri Lanka is well placed to benefit from e-commerce, but all stakeholders must collaborate for the sector to flourish. Challenges related to goods and services supply and digital infrastructure must be resolved for e-commerce to drive further growth.
Has Daraz’s Gross Merchandise Value and other metrics indicated an economic recovery in Sri Lanka?
The Sri Lankan economy contracted severely in 2022. Recovery will take time, but metrics indicate the economy is turning around. Even though sales in categories like electronics, household appliances, and furniture have been slow, sales in groceries, household essentials, fashion, and health and beauty categories are picking up. And as market conditions evolve, we will continue to ensure that the quality, choice, and price of products on our platform meet customer needs and different wallet sizes.
We’ve also launched new campaigns like the “1st Day Sale” and “Mart Sundays” to encourage online buying and boost spending power. Additionally, we recently extended our Daraz Mart range to include Daraz Fresh, supplying vegetables and fruits to your doorstep in under 24 hours.
You lead the Daraz Commercial Department. What is its core function?
The Commercial Department manages the sellers and supplies of the Daraz platform.
Our team is responsible for acquiring and onboarding sellers, e-commerce education, conducting quality checks, and ensuring consistent supply on the platform. However, an area I want to highlight is the education component. We have a team dedicated to educating Sri Lankan businesses and entrepreneurs on leveraging platform technology, logistics, and payment ecosystems to grow their businesses. We are enabling businesses of all sizes to explore e-commerce as a viable option to extend their reach beyond their geographic boundaries, and we pay special attention to the MSME sector, helping them to access new customer segments and explore innovative brand strategies, which lead to multi-channel sales growth.
Daraz Mall is another component I would like to highlight. Daraz Mall is our online brand pavilion, and our team focuses on developing Joint Business Partnerships with reputed brands to grow the Mall offering. Being part of Daraz Mall ensures businesses can capture greater online opportunities, and each partnership is unique to each business type. Many brands have benefited from such associations, and we will further elevate these opportunities in the near term.
What value does Daraz Mall bring to the Daraz Platform and its users?
Daraz hosts a wide assortment that includes supplies from marketplace sellers and Daraz Mall sellers. Daraz Mall showcases reputed local and global brands and is the place for genuine branded products. Brands like Amante, Celsius, Dankotuwa, Dilly and Carlo, Exclusive Lines, Fashion Bug, Hemas, LuvEsence, Nestle, Swisstek, and Unilever, can be found on Mall covering a range of categories including, fashion, groceries, health and beauty, homeware, electronics, groceries and more.
Both our users, businesses, and consumers benefit from Daraz Mall. Hosting a virtual store provides businesses with the opportunity to become a part of Sri Lanka’s largest online brand pavilion, enjoying unique brand visibility. And for consumers, Daraz Mall guarantees authenticity and includes a “2X money-back guarantee” feature to elevate their shopping experience. It’s a one-stop shop for all your branded needs, and we will continue expanding this offering to meet business and consumer demands.
What challenges have you faced leading a vital team amidst the current economic situation, and what insights have you gained?
I have a strong team committed to learning and driving e-commerce in Sri Lanka. Nonetheless, e-commerce is a fast-paced industry. Things change rapidly daily and are even harder to manage in a volatile market. I ensure my team leaders stay agile and flexible to manage market changes while staying focused on company objectives. Some of my key learnings have been to always listen and ask questions – maintaining open communication boosts team morale and performance when things are tough. And my second learning is to collaborate with other departments and external partners at every opportunity because collaboration is vital to overcoming complex challenges.
What opportunities and vision will Daraz pursue in Sri Lanka?
Our vision for the short term is ‘Anything. Anytime. Shop Daraz’. We are committed to solving the supply issues Sri Lankans face while ensuring greater market access for businesses. We will also work to grow e-commerce as a share of retail in Sri Lanka and drive digital payments. It’s a challenging goal, but we have a big vision for e-commerce. We have witnessed its transformative effect and want to ensure that Daraz continues to uplift communities through the power of e-commerce