E-commerce market taking off
Online sales of merchandise increase manifold on 11.11
PHOTO: FILE
KARACHI:
Pakistan’s e-commerce market is taking off following an increase in public trust in the online network of buying and selling goods of all types.
Sales of online merchandise in the country increased manifold during the commercial bonanza of November 11 - known as 11.11 or ‘Gyara Gyara’.
“We have seen a 300% rise in orders compared to the previous year,” said Sastaticket CEO Shazil Mehkri in an email reply to a query regarding sales on 11.11. He elaborated that Pakistan’s e-commerce market was moving out of the infancy phase as people were trusting online dealers more than ever. Earlier, there was widespread doubt over the quality of merchandise bought online coupled with the fear of scamming.
He was pleased with the fact that a large number of people were now comfortable with buying different goods like flight tickets online. Consumers were becoming highly tech-savvy with each passing day, he said.
Pakistan’s changing e-commerce landscape
“We have people interacting with us and they are now more aware of what is happening during this holiday/sales season, especially in the online space,” he said. Secondly, he pointed out that the Singles’ Day (November 11) sales had encouraged people to wait for the 11.11 to purchase their required merchandise.
Following Daraz’s acquisition by Alibaba in May 2018, the online shoppers had big expectations from the Singles’ Day sales in Pakistan. Alibaba has been celebrating the Singles’ Day with countless promotions and sales since 2009.
On November 11, 2019, the sales of Alibaba hit a record $38.4 billion.
On the other hand, Daraz Managing Director Ehsan Saya said sales figures of the company grew 70% compared to November 11, 2018. “Daraz’s user base on November 11 widened 123%,” he said.
Prior to that, the company had recorded a growth of 150% in active customers and 200% in orders this year.
“We are observing a massive change in the consumer behaviour,” said the MD while talking to The Express Tribune on the sidelines of a press conference held last month.
According to him, cellphones and appliances were the highest selling goods on Daraz. The company also reported an increase of 4.7 times in the number of sellers during 11.11 compared to the same day of the previous year. “Around 88% of sellers on our website received at least one order,” he said. “On November 11, the daily users of the application hit a historic high.”
Google study reveals Pakistan's evolving e-commerce sector
The online marketplace not only sells fast-moving consumer goods like soaps, toothbrushes and kitchen accessories but it has also started offering motorcycles and cars now. “We even sold goats prior to Eidul Azha,” Saya pointed out.
The State Bank of Pakistan, in its Annual Performance Review for Financial Year 2018-19, stated that despite strong consumer preference for cash and low financial and digital literacy, the digital payment infrastructure was evolving gradually in Pakistan.
A rapid rise in branchless banking (mobile wallets) and a continuous increase in 3G/4G penetration have led to improved integration of e-retailers and online marketplaces in the services sector.
“Events like 11.11 change the ecosystem as a whole and set new benchmarks every year,” said the MD. “Sales during the event rise 10 times than normal.”
Published in The Express Tribune, November 14th, 2019.
Pakistan’s e-commerce market is taking off following an increase in public trust in the online network of buying and selling goods of all types.
Sales of online merchandise in the country increased manifold during the commercial bonanza of November 11 - known as 11.11 or ‘Gyara Gyara’.
“We have seen a 300% rise in orders compared to the previous year,” said Sastaticket CEO Shazil Mehkri in an email reply to a query regarding sales on 11.11. He elaborated that Pakistan’s e-commerce market was moving out of the infancy phase as people were trusting online dealers more than ever. Earlier, there was widespread doubt over the quality of merchandise bought online coupled with the fear of scamming.
He was pleased with the fact that a large number of people were now comfortable with buying different goods like flight tickets online. Consumers were becoming highly tech-savvy with each passing day, he said.
Pakistan’s changing e-commerce landscape
“We have people interacting with us and they are now more aware of what is happening during this holiday/sales season, especially in the online space,” he said. Secondly, he pointed out that the Singles’ Day (November 11) sales had encouraged people to wait for the 11.11 to purchase their required merchandise.
Following Daraz’s acquisition by Alibaba in May 2018, the online shoppers had big expectations from the Singles’ Day sales in Pakistan. Alibaba has been celebrating the Singles’ Day with countless promotions and sales since 2009.
On November 11, 2019, the sales of Alibaba hit a record $38.4 billion.
On the other hand, Daraz Managing Director Ehsan Saya said sales figures of the company grew 70% compared to November 11, 2018. “Daraz’s user base on November 11 widened 123%,” he said.
Prior to that, the company had recorded a growth of 150% in active customers and 200% in orders this year.
“We are observing a massive change in the consumer behaviour,” said the MD while talking to The Express Tribune on the sidelines of a press conference held last month.
According to him, cellphones and appliances were the highest selling goods on Daraz. The company also reported an increase of 4.7 times in the number of sellers during 11.11 compared to the same day of the previous year. “Around 88% of sellers on our website received at least one order,” he said. “On November 11, the daily users of the application hit a historic high.”
Google study reveals Pakistan's evolving e-commerce sector
The online marketplace not only sells fast-moving consumer goods like soaps, toothbrushes and kitchen accessories but it has also started offering motorcycles and cars now. “We even sold goats prior to Eidul Azha,” Saya pointed out.
The State Bank of Pakistan, in its Annual Performance Review for Financial Year 2018-19, stated that despite strong consumer preference for cash and low financial and digital literacy, the digital payment infrastructure was evolving gradually in Pakistan.
A rapid rise in branchless banking (mobile wallets) and a continuous increase in 3G/4G penetration have led to improved integration of e-retailers and online marketplaces in the services sector.
“Events like 11.11 change the ecosystem as a whole and set new benchmarks every year,” said the MD. “Sales during the event rise 10 times than normal.”
Published in The Express Tribune, November 14th, 2019.