Daraz E-Commerce Index Shows Digital Payments Growth And Online Shopping Boom

Daraz E-Commerce Index Shows Digital Payments Growth And Online Shopping Boom

KARACHI, Pakistan’s first e-commerce index that provides insight into consumer behavior and reflects the growth of the e-commerce industry, was presented by Daraz at an online event hosted by the platform, the Federal Secretary for Technology for the Information, Shoaib Siddiqui, April 16. 2018.

Pakistan remains a cash-dependent economy, and therefore collecting reliable data on the growth of the e-commerce market remains a challenge. Therefore, the goal of the Electronic Commerce Index, developed by Daraz, is not only to establish criteria for consumer behavior on the Internet but also to help industry stakeholders better understand the online shopper. Since Daraz represents a large part of the industry, the data that has been obtained from the company’s internal data since 2019 is used for this purpose.

The index analyzes the behavior patterns of a growing segment of Pakistanis who shop online and draws a holistic picture of the factors that encourage and discourage consumers to switch to online channels. Furthermore, it shows the potential of e-commerce in second-tier cities like Sialkot, Gujranwala, Hyderabad, and Multan, highlighting the wide penetration of e-commerce in Pakistan and meeting customer needs in various product categories and brands.

One of the key findings of the Index is that in 2019 there was a shift towards digital payment methods. In Daraz, digital payments accounted for 32% of total consumer spending, and the use of electronic wallets increased 8.2 times compared to the same period last year. ,

The index also highlights changes in consumer demand during the second and third weeks of March 2020 after the outbreak of the Coronavirus in Pakistan. He notes that the percentage of FMCG product sales in Daraz has doubled during this time period and is expected to increase to 70% of the platform’s total sales in the coming weeks.

“During this period of uncertainty, we witnessed a change in customer behavior as demand for basic goods grew rapidly; This is a clear sign that electronic commerce can serve as a solution now. We are responsible for ensuring continued access to these products to facilitate social distance, help our country and serve our customers, “said Ehsan Saya.

“During this time, the role and positive approach of technology companies must be recognized. Your contribution is still valuable. The government has taken a catalytic role, and we will continue to do so, ”said Mr. Siddiqui during an online event.

Daraz is confident that understanding consumer behavior and the requirements presented in the index will be useful to industry stakeholders and help advance the digital revolution in the country.

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