In the present era of digitalization, the e-commerce sector has introduced various changes in its course of action and approach. Unlike the traditional business modules, many new businesses are entering the market with new strategies and practical approaches.
The majority of the business are using the internet and online platform for developing their business and earning profit. Likewise, the e-commerce sector has also benefited a lot from the advancement in the internet and technologies.
Daraz Nepal was previously known as ‘Kaymu’ which was established in 2014 in Nepal. The e-commerce platform could be accessed back then through the site ‘kay-mu.com’. Later on, this platform was acquired by the leading e-commerce business of South Asia ‘The Alibaba Group’ in April 2018.
Due to the digitalization of the E-commerce sector, a decision/proposal was put forward to merge Kaymu and Alibaba under the new entity of Daraz Nepal to the Alibaba Group. As a result, they rebranded the platform from ‘Kaymu’ to ‘Daraz Nepal’.
As a result, the company is now a branch of the Alibaba Group operating in Nepal. The majority of the profit and share of the company goes to the owner ‘The Alibaba Group’. Unlike other countries, Nepal doesn’t have access to leading e-commerce platforms such as Amazon, eBay, BestBuy, etc.
The government of Nepal restricts casual international transactions for some reasons so it has lagged the nation in many ways. Likewise, the Alibaba Group has also opened other branches/subsidiaries of Daraz in many South Asian countries. These countries include Nepal, Pakistan, Bangladesh, Morocco, Ghana, Afghanistan, etc.
Daraz Nepal has an extensive source of market environments, sales growth, and returning consumers. In addition, Daraz Nepal has over 30,000 sellers and 500 brands serving over 5 million customers across the region. It has proven to be highly successful in the field of online shopping and tries to provide its customers with a better shopping experience.
Currently, Daraz Nepal has 250,000 plus products with more than 200 plus product categories and the number is still increasing. It consists of a diverse quantity of products for customers including household, beauty, fashion, sports, stationery, office, and even grocery products.
Daraz Nepal has and practices three major e-commerce models i.e. B2B, B2C, and C2C. These business models are the fundamentals of many businesses of the present era. B2B means the selling, buying, or distribution of goods or services between two business entities. This involves trade between brands and organizations.
B2C means the trading of goods or services between one business entity and the final consumer. Likewise, C2C is an e-commerce model that takes place between consumers. Here, no matter what the model, the main motive of business is to buy at lower and sell at reasonable price trying to make a profit.
Every day, more than 75,000 people visit the app/site, and thousands of products are sold each day. Due to the busy lifestyle, people are unable to allocate time to do physical shopping so they resort to online shopping instead. And Daraz Nepal has very effectively utilized this opportunity to their advantage.
Additionally, Daraz Nepal offers huge discounts on many products during different events and occasions. They often announce events such as Black Friday, Season Special, Weekend Special, 11:11 Mega Sale, 12:12 year-end sale, and much more. During these events, many products are promoted at relatively lower prices to attract more customers to buy more products.
Organizing such events is actually a great strategy as there is huge sales growth resulting in more revenue for the company. Not only the company but this is beneficial for the customers also. In addition, Daraz Nepal provides Rs. 200 off on the first purchase for new users.
They focus on what the customers want and what will satisfy their needs. They also provide price tags for each product and occasionally announce special discounts as well. Consecutively, the customers get enticed by these factors and end up purchasing the products which is a good thing.
Daraz Nepal provides different types of products as per the demand of the customers and evergrowing trends. They promote products on their page according to the seasons, occasions, fashions, and trends. They provide products that are currently in demand/trend and relevant to the customers.
For instance, they promote all summer products in the summer season and all winter products in the winter season. Daraz Nepal also promotes new products that are recently launched in the market at affordable and reasonable prices.
Though there are other many e-commerce platforms, Daraz Nepal has been able to hold the top position for a very long time. Daraz Nepal has the principle of ‘providing quality products and services to the customers’. And this is one of the reasons for it to achieve such feat.
A majority of e-commerce sites increase the price of the products in demand without ensuring their quality. Unlike them, Daraz Nepal ensures to provide quality products at reasonable prices except for some stores.
Daraz Nepal has been able to overcome its competitors such as shopmandu.com, sastodeal.com, gyapu.com, hamrobazar.com, etc. Additionally, Daraz Nepal provides products that are not available in these and other e-commerce sites otherwise, which is a plus point for it.
Daraz Nepal is estimated to be worth around $50 Million and the number is still increasing. It has been able to attain over a million customers and generate more sales. It generates a yearly estimated revenue of Rs. 3.55 Billion and monthly about Rs. 100K from sales only. Last year, Daraz Nepal generated about Rs. 300 million in revenue from its 11:11 event alone.
It has expanded its coverage to all parts of Nepal irrespective of the geographical condition. It has been actively providing its services for all three geographical reasons without any hindrances. With the increasing growth of the company, it has also increased its employees and management teams.
As of now, Daraz Nepal has been able to provide employment to thousands of Nepalese people. Along with Daraz Nepal, its delivery partner ‘Aramex Nepal’ has also experienced exceptional growth in recent years.
Likewise, many Nepalese people are being introduced to online shopping and e-commerce recently. Along with customers, many business owners are also shifting to the online portal from the traditional one. With this thing in mind, Daraz Nepal is trying its best to make the platform unbiased and more user-friendly for everyone.
To sum up, Nepal as a developing country has high potential in the field of e-commerce. Many e-commerce platforms like Daraz are trying their best to thrive in the market. They are constantly bringing new strategies and ideas to best grow their sales. Among the many, Daraz Nepal is on the top and is still grinding to maintain its position.
To be honest, I really like the fact that Daraz Nepal promotes local products and the ones that are made in Nepal. This is a great initiative for not only the company but the nation, the sellers, and the customers as well. As a regular customer of this platform, I haven’t experienced any inconvenience from the platform yet.
So, I don’t have many complaints with the site but this doesn’t mean that there are any flaws. Things might be different for you.
And yes, be careful while doing online shopping. Some sellers are there to scam you, be sure to avoid them. Before purchasing, always look for reviews and details. This will save you a lot of time and prevent you from wasting money on scams.
By the way, I like to give a big thanks to Mr. Chiranjivi Pathak for helping me with this article. He had prepared a study regarding Daraz Nepal and I took a portion of data from that report. If you want you can check that report here: Daraz Nepal Report by Mr. Chiranjivi Pathak.
His report was a great reference for the creation of this article and without it, this article wouldn’t be possible. Again, Thank You for your kind help!! <3
Anyways, I hope that this article was helpful to you. See you in the next article.
Best Regards!!
