Competitive prices and easy returns key to Pakistan’s e-commerce growth: Daraz chief

KARACHI: In an interview with The News, Ahmed Tanveer, chief customer officer of Daraz Group, emphasised that offering products at competitive prices, providing a positive delivery experience, and having a simple, free return policy are crucial for fostering e-commerce growth in Pakistan.

Q: What do you think are the biggest challenges and opportunities facing the e-commerce sector today in Pakistan?

A: Pakistan holds immense potential to become a rapidly growing emerging economy, provided its challenges are addressed with strategic, long-term planning. The country boasts one of the largest youth populations globally, coupled with increasing digital penetration. This creates numerous opportunities for consumers and small business owners, established brands seeking incremental growth, and logistics companies aiming to expand. While the e-commerce sector is still in its early stages, these opportunities can be harnessed by adopting the right mindset and approach.

However, challenges persist. Building customer trust in online shopping remains a key issue across the industry, requiring continuous efforts from all players. Additionally, Pakistan’s geographical diversity presents operational difficulties, including limited digitisation and underdeveloped infrastructure, especially in smaller cities and rural areas. Manual processes for tracking deliveries in these regions make it difficult to provide real-time updates, while poor infrastructure increases delivery costs and complicates logistics.

Daraz launched Daraz Express, its in-house logistics service, to address these challenges to improve delivery efficiency. We have also partnered with around 10 logistics experts, introducing innovation and enhancing operational capacity during peak demand periods.

Q: How do you balance local market dynamics with the broader goals of being part of Alibaba’s International Digital Commerce (AIDC) Group?

A: We strike this balance by leveraging Daraz’s in-depth understanding of the Pakistani e-commerce landscape while aligning with AIDC’s global vision. By adopting best practices from AIDC, we strive to enhance the consumer experience while staying attuned to local market needs.

Daraz’s expertise in customer support allows us to address unique local preferences, helping us build trust among consumers and sellers. This combination of local insights with global strategies ensures we remain competitive and relevant in the market while contributing to AIDC’s broader goals.

Q: You mentioned the establishment of South Asia’s first dedicated AIDC service centre in Karachi. What are the immediate goals for this centre, and how will it impact Daraz’s operations across South Asia?

A: The immediate goals of the AIDC service centre in Karachi are to manage customer and seller support for Lazada and extend its services to multiple regions. This initiative not only helps us export our expertise beyond South Asia but also contributes to the local economy by creating employment opportunities and providing international exposure to local talent. Through this centre, we aim to strengthen regional operations while fostering the growth of Pakistan’s digital economy.

Q: You’ve highlighted the goal of creating hundreds of new jobs in Pakistan through this centre. What skills are you looking for, and how will local talent be trained to meet the demands of a global platform like AIDC?

A: We are seeking candidates with a strong interest in customer experience, digital commerce, and technology. Selected talent will undergo training based on AIDC’s global best practices to enhance both their technical and soft skills. This initiative provides employees with valuable international business exposure, fostering a global mindset through close collaboration with AIDC teams. Our goal is to empower local professionals with the knowledge, skills, and tools needed to excel in the evolving digital economy, contributing not only to their personal growth but also to Pakistan’s expanding technology sector.

Q: Artificial intelligence (AI) and technology are at the forefront of your strategy for improving the customer and seller experience. Could you give us some insight into the innovations Daraz is currently working on?

A: We are integrating AI and technology across key areas, including product recommendations through images, customer service, fraud detection, and inventory management. These innovations help streamline operations, allowing us to scale efficiently while enhancing the overall customer experience. Recently, we revamped our app to deliver more personalised experiences, resulting in higher conversion rates. Our seller centre, used by marketplace sellers to manage and grow their businesses, now offers an improved user interface, guided onboarding for new sellers, and access to granular data to better respond to customer demand. Additionally, we’ve introduced automated product recommendations and real-time chat monitoring, ensuring sellers can provide faster and more informed responses.

Q: What are Daraz’s future plans in Pakistan?

A: Daraz’s next phase of growth will focus on advancing technology and product development to optimize supply chain management, expand product assortments, enhance payment solutions, and elevate the customer experience.

To drive e-commerce growth in Pakistan, it’s crucial to offer products at competitive prices, provide a good delivery experience, and have a free and easy return policy encouraging consumers to transition from offline to online shopping. Our goal is to create a seamless shopping experience that meets evolving customer needs while fostering trust in the digital marketplace.