Even before the COVID-19 pandemic, e-commerce was already witnessing significant growth – with the sector expanding at a steady pace of 4.5 per cent globally.
This was driven mainly by factors like increased digitisation, improvements in technology and infrastructure, and consumers expecting more convenience and accessibility.
The pandemic, however, has triggered a dramatic boom in e-commerce. In South Asia, where e-commerce is behind regions like Southeast Asia, the pandemic has accelerated its adoption. Digital maturity in South Asia sped up, with more consumers – regardless of age – shifting to shopping online due to lockdowns, and businesses having to think outside of the box to find new sales channels and ways to keep customers engaged.
In line with this, Daraz – the largest e-commerce platform in South Asia – has seen business on its platform continue to record 100 per cent year-on-year growth and is on track to reach over USD1 billion sales on its platform this financial year. In 2021, the company reached over 40 million users on its platform across its five markets, and over 100,000 active SME sellers.
The e-commerce opportunity
This growth is expected to accelerate even further, especially with internet penetration in the region growing, more SMEs now looking to integrate e-commerce into their businesses, and governments in the region shifting their perceptions of the economic value of e-commerce.
COVID-19 has provided the ultimate test in which governments across South Asia now recognise the role of e-commerce in keeping regional economies moving through the crisis. As a key player in the industry, Daraz has showcased how its platform can support business continuity, ensure essential goods and services can continue to be delivered, and improve the economic resilience of the markets it has a presence in.
Aligned with its belief that South Asia’s digital economy is now at an inflexion point, Daraz is committed to working together with governments throughout the region to fuel the growth of e-commerce and digitalisation across its five markets. The goal is to increase the number of active e-commerce and digitally educated SMEs on Daraz’s platform and ultimately create more jobs through its marketplace model.
Beyond its economic impact, Daraz’s platform has made commerce more accessible to the communities throughout South Asia – consistent with the company’s vision to ‘uplift communities through the power of commerce’. It focuses on creating an environment in which entrepreneurs and SMEs can thrive by not only providing them with innovative, tech-driven logistics and payments solutions but also learning opportunities and tools on how to run successful e-businesses from the ground up.
By encouraging an entrepreneurial spirit across South Asia, Daraz believes this will in turn mean that it can provide its customers with access to a wider range of products and services.
Charting a new course for 2022
The last few years have seen Daraz accelerate its growth momentum across the region. Today, the company has unrivalled market leadership and multiple parts of its ecosystem – e-commerce marketplace, digitalized logistics network, financial payments, and financial services – are set up for further growth in a region with significant potential.
To kickstart the year, Daraz will be undergoing a complete brand refresh. While the look and feel of the brand are now evolving to be more modern, contemporary and relatable, Daraz is now set to establish an emotional and experiential relationship with its customers as well as sellers.
The brand’s focus will move to a more exploratory and personalized experience, where the focus is not on just selling products, rather experiences. While it brings the joy of shopping to people across the nation through the wide variety of assortment on its platform, it will continuously innovate and create new avenues of entertainment and engagement for its sellers and customers alike. This keeps to the company’s ambition of making e-commerce a key part of people’s everyday lives, and not just when they need to purchase something.
More than just a cosmetic change, the brand refresh signifies the evolution of Daraz as it gears up to achieve its vision of reaching 100 million customers and businesses by 2030 and to herald in a new era of e-commerce for South Asia.
Providing experience through the products people are buying. Fulfilling aspirations thorough a wide variety assortment and create. – Press release
