The document analyzes online shopping trends in Pakistan, specifically for the ecommerce platform Daraz.pk. It finds that while there is potential for growth, online shopping has been slow to take off due to lack of awareness, trust, reliable payment options and delivery infrastructure. The research found consumers prefer cash on delivery and rate convenience and product quality higher for online versus traditional shopping. Recommendations include improving payment systems and expanding deliveries beyond major cities.

1. Marketing Research:
Ecommerce Industry in
Pakistan
(daraz.pk)
NASHMIAH KHAN
FARWAH FATIMA
NAJIA FARAZ
SARA AMJAD

2. Problem Definition
 Slow pace of online shopping trend in Pakistan

3. Approach To The Problem
 Lack of online payment method
 Market distribution
 Fake orders
 Logistic companies dispute
 Delayed payments
 Lack of awareness
 No after-sales service

4. Introducing the market leaders:
Daraz.pk
 Name: Daraz
 Idea: daraz, holds everything. The place where you
find everything.
 Founded in: August, 2012
 Categories: Daraz brings to you the most sought
after collection of apparels, footwear, accessories,
jewellery and more. We are there before you to source
the latest products exclusively for your wardrobe.

5. Daraz – the 24x7 Online
Fashion & Lifestyle Store
for everyone
We have more designers and brands than Zamzama,
M.M.Alam Road and Jinnah Super combined so all your
fashion needs can be conveniently and competitively fulfilled
under the umbrella of Daraz. You can choose from our
extensive range of men’s shirts, unique dresses for women
with matching footwear, accessories, handbags and much
more - all on one website!. So why you still waiting? Browse
Daraz.pk and experience Online Shopping in Pakistan. Call
us on (021) 11-11-32729 or email us
at customer@daraz.pk for any queries or concerns.

6. Secondary Data Analysis
Daraz.pk

7. Secondary Data Analysis
 Lack of online payment method:
 Facilities like paypal lack in Pakistan but if introduced here, it will only be
accessible to just limited people
 Bank sector has realized the gap in the market and are working to fill in

8. Secondary Data Analysis
 Market distribution:
 Orders placing from remote geographical locations
 Partnership with TCS

9. Secondary Data Analysis
 Fake orders:
 Major problem at time of establishment
 Curiousness among people
 Blocking customers placing regular fake orders

10. Secondary Data Analysis
 Logistic companies dispute:
 Cash flow dispute (how long do they take to payout the funds collected on
site’s behalf)
 Cash on delivery amount is restricted to Rs.50,000
 Above than Rs.50k purchase, customer has to pay via prepaid order

11. Secondary Data Analysis
 Lack of awareness:
 Cultural and first move disadvantage
 Not willing to take risk
 Customers do not know how to place order
 Mass online marketing for awareness

12. Secondary Data Analysis
 No after-sales service:
 Strive to provide best quality and original product
 If there is compromise on quality of a product, it is mentioned on site
 Quality check done for products that are to be shipped

13. Research Design
 Exploratory research i.e. to get better understanding and insight of
the problem and know the viewpoint of customers

14. Target Audience
 Age:
 16 - 25
 26 - 35
 36 - 45
 SEC:
 SEC A
 SEC B
 Gender:
 Male
 Female
 Education:
 Literate
 Internet users
 Geographic Location:
 Urban residents
 Research Audience:
 Research audience for “daraz.pk" will be the purchaser.

15. Sampling
 Sample size: 150
 Extended sample size: 170
 Research method: Quantitative
 Sampling Method: Simple Random Sampling

16. Research Data Analysis

17. 10.66666667
66.66666667
16.66666667
0
0
10
20
30
40
50
60
70
Don't trust at all To some extent Trust enough to purchase Fully trust
Research Data Analysis
 Trust Factor:

18. 8
30
40
28
0
5
10
15
20
25
30
35
40
45
Once a week Once a month Once a year More than once a year
Research Data Analysis
 Online shopping purchase trend:

19. 52.66666667
17.33333333
26.66666667
0
10
20
30
40
50
60
1
Daraz.pk
Kaymu.pk
Dealstoday.pk
Research Data Analysis
 Site Preference:

20. 0
10
20
30
40
50
60
70
80
Bank Draft Cash on delivery Debit card Easy paisa
Bank Draft
Cash on
delivery
Debit card
Easy paisa
Research Data Analysis
 Payment method preference:

21. 52.66666667
16
29.33333333
2
0
10
20
30
40
50
60
Highest approval Lowest approval High low Highest disapproval
Research Data Analysis:
Traditional v/s Online (Rating)
 Quality (Traditional):

22. 31.33333333
27.33333333
31.33333333
10.66666667
0
5
10
15
20
25
30
35
Highest approval Lowest approval High low Highest disapproval
Research Data Analysis:
Traditional v/s Online (Rating)
 Quality (Online):

23. Research Data Analysis:
Traditional v/s Online (Rating)
 Price (Traditional):
10
45.33333333
40
11.33333333
0
5
10
15
20
25
30
35
40
45
50
Not at all reasonable reasonable Reasonable to some extent Most reasonable

24. 22.66666667
38
28
10.66666667
0
5
10
15
20
25
30
35
40
Not at all reasonable reasonable Reasonable to some extent Most reasonable
Research Data Analysis:
Traditional v/s Online (Rating)
 Price (Online):

25.  Convenience (Traditional):
Research Data Analysis:
Traditional v/s Online (Rating)
42
14.66666667
36.66666667
7.333333333
0
5
10
15
20
25
30
35
40
45
Highest approval Lowest approval High low Highest disapproval

26. Research Data Analysis:
Traditional v/s Online (Rating)
 After-purchase service (traditional):
35.33333333
29.33333333
23.33333333
12
0
5
10
15
20
25
30
35
40
Highest approval Lowest approval High low Highest disapproval

27. 53.33333333
14
29.33333333
3.333333333
0
10
20
30
40
50
60
Highest approval Lowest approval High low Highest disapproval
Research Data Analysis:
Traditional v/s Online (Rating)
 Delivery Facility (Online) :

28. 42.66666667
25.33333333
26.66666667
5.333333333
0
5
10
15
20
25
30
35
40
45
Highest approval Lowest approval High low Highest disapproval
Research Data Analysis:
Traditional v/s Online (Rating)
 Payment facility (online):

29. Research Data Analysis: Scope
for Online Shopping in Pakistan
 Do you think there is scope for online shopping in
Pakistan?
84.66666667
15.33333333
0
10
20
30
40
50
60
70
80
90
1
Yes
No

30. Online Shopping Rated by
Respondents
13.33333333
24.66666667
45.33333333
16
7.333333333
0
5
10
15
20
25
30
35
40
45
50
1 2 3 4 5

31. Research Data Analysis
 Respondents asked if they will recommend online
shopping:
79.33333333
20.66666667
0
10
20
30
40
50
60
70
80
90
1
Yes
No

32. Research Data Analysis: Likes
and Dislikes about Online
Shopping
Likes
 One click away
 Variety
 Time saving
 Feasibility
 Convenience
 Energy saving
 On time deliveries
 Easy to search
Dislike
 Lack of quality assurance
 Size variation
 More options d/f for decision
 Payment issue
 Shipping charges
 No after-sales service
 Delayed deliveries
 Delayed confirmation
 No guarantee
 No responses

33. Research Data Analysis: Advantages
and Disadvantages about Online
Shopping
Advantages
 Time saving
 Convenient
 All under single website
 Review options
 Doorstep delivery
 Payment method
 Affordability
 Availability
 Mass market can be targeted
Disadvantages
 Quality risk
 Bargaining
 Fake/unoriginal products
 Account hacking
 Frauds and fake sites
 Customer service
 Do not receive the product as it is
showcased on sites

34. Reasons for slow pace of online
shopping trend in Pakistan
 Lack of awareness
 Lack of trust
 Lack of reliance on the product due to no physical test
 Lack of customer loyalty
 Lack of quality
 Lack of technology awareness
 Lack of reliability on sites
 Lack of product description
 Lack of practice
 Traditional mindset of people

35. Results and Recommendations

36. Results
Benefits of E-Commerce in Pakistan:
 Banks.
 Employment Opportunities.
 Business for Courier Services.
 Less Costly & More Beneficial.
 Domestic Entrepreneurs Gets Platform.
 Getting Aware of the Importance of Business.

37. Results
 On hand experience of product.
 Saves a lot of time.
 One bad experience keeps them away to purchase
again.
 No exchange policy issue.
 They feel comfortable in COD mostly.
 User friendly websites and app.
 Doorstep delivery is much approved by the customers.
 Recommendation/testimonials about the product.

38. Results
 Lack of a dedicated online payment gateway such as
Paypal.
 Bottlenecks in distribution and delivery channels to
rural areas.
 Low Literacy rate has led many Pakistani firms to give
low priority to e-commerce due to unavailability of
proper framework for the internet in the country.
 Unavailability of proper infrastructure.

39. Results (Secondary Source)
 Propakistani.pk stats for the reason of slow growth
of online shopping in Pakistan:
 65% use internet at least once a week
 98% of the people are not satisfied with the internet speed.
 2% of the people say they shopped online and 99% of the 2% people said
they shopped online once.
 99% of the online shoppers feel insecure doing transactions online.

40. Foreign Trend of Online Shopping
 In Europe and America, buying online is a routine for
everyone. People buy both tangible and non-tangible
goods online but in countries like Pakistan, still people
are reluctant there to shop online. United States, Europe
and Australia are the big Markets for Online Shopping
where you can buy anything hassle free. Products are
delivered within the time they have described.

41. Recommendations
 Mobile apps like OLX and eBay.
 Advertise on sites such as Geo news, Dawn, Tunes.pk
 Aim for a seamless payment system.
 Debit cards at the doorstep.
 Spread outside of tier 1 to tier 2 cities
 Delivery timelines
 Educate people on the pros of online shopping