Daraz to introduce new apps, expand business
E-commerce platform Daraz will be launching several new applications in the coming months to broad-base its product offerings on the back of unveiling its new logo.
The new logo denotes a shift to a more personal experience that will allow them to create greater connectivity between buyers and sellers on our platform, Rakhil Fernando, Managing Director of Daraz Sri Lanka, told the Business Times in an interview. He added that rebranding was also in line with allowing the brand to catch up to where the country has grown to in the current context.
“We are trying to be a more customer-centric and a user-centric company and a lot of investment has gone into rebranding to realise this shift.” He added the company has already launched live streaming and is looking towards other similar franchises, free entertainment along with fresh produce and frozen foods. Daraz Food will be launched on a separate app where restaurant food can be delivered within 10 minutes, he said.
“We will launch D Mart which is a grocery store within Daraz. Right now, the grocery store has non-perishable and non-frozen goods but within the next four months it will be available in Colombo and the suburbs.” The company aims to secure a warehouse of 150,000 square feet in the next 12 months to facilitate the perishable and frozen food categories. It will also have 30 more hubs bringing the total to 60 hubs to facilitate pick-up points.
Mr. Fernando explained Daraz as a marketplace selling products on behalf of the customers with as many as seven million product offerings. He identified the company’s unique selling point as its extensive assortment range and said that it is the place for consumers to scout products.
He added that 85 per cent of their sellers are Sri Lankan brand owners emphasising the company enables Sri Lankan entrepreneurs to scale their businesses.
“Daraz entered the Sri Lankan market in 2016 and has flourished over the years. While it is the largest e-commerce platform in the country the online e-commerce sales in the country are at 2 to 3 per cent,” he said pointing out that there is a huge opportunity of 97 per cent live retail market that they can exploit.
Traditionally the electronics sector is the most sought after purchase-wise at Daraz but lately fast moving consumer goods, fashion, and general merchandise like bicycles etc have also been bought.
Their buyers are spread in and around the country, he said noting 30 per cent are from Colombo and the rest are spread well across.
Mr. Fernando said that the re-branding is also to make e-commerce a key part of people’s daily lives across its five markets in South Asia: Pakistan, Bangladesh, Sri Lanka, Nepal, and Myanmar.
A key change is the new icon, which represents a package that is symbolic of how the e-commerce platform physically connects SME sellers to customers. At the centre of the icon is an arrow that highlights the focus on progress and fast deliveries, but also resembles a “play button” symbolising how Daraz is continually innovating to create a more dynamic content experience for users.
Mr. Fernando said the current economic situation in the country has negatively impacted the supply side of the business, but the demand is really high for their products. He added that nearly two million customers visit the website which is close to 10 per cent of the population. “They want to explore, and we are like the default place to look for a product.”