Pakistan’s first e-commerce index powered by Daraz shows an increase in digital payments and growing demand for online shopping

Pakistan’s first e-commerce index powered by Daraz shows an increase in digital payments and growing demand for online shopping

Daraz launched Pakistan’s first e-commerce Index, which provides insights into consumer behavior and outlines the growth of the e-commerce industry, at an online event hosted by the platform and attended by Federal IT Secretary Shoaib Siddiqui on April 16, 2020.

Pakistan remains a cash-dependent economy, and consequently gathering reliable data on the growth of the e-commerce market has remained a challenge. Therefore, the purpose of the E-Commerce Index, which is powered by Daraz, is not only to set benchmarks for online consumer behavior, but also to help industry stakeholders better understand the buyer in line. With Daraz representing the majority of the industry, the insights, which have been accumulated through the company’s internal data since 2019, serve that purpose.

The Index analyzes the behavior patterns of a growing segment of Pakistanis who shop online and paints a holistic picture of the factors that encourage and discourage shoppers to switch to online channels. In addition, it maps the e-commerce potential of tier 2 cities like Sialkot, Gujranwala, Hyderabad, and Multan, highlighting the extensiveness of e-commerce penetration in Pakistan and noting customer demands for different product categories and brands.

One of the key findings of the Index is that there has been a shift towards digital payment methods in 2019. In Daraz, digital payments contributed 32% of total consumer spending and the use of electronic wallets increased 8.2 times compared to the previous year. .

The Index further highlights the observed changes in consumer demand during the second and third week of March 2020, following the outbreak of the CoronaVirus in Pakistan. He notes that the percentage of FMCG product sales in Daraz doubled during that 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 have witnessed a change in customer behavior, with rapidly growing demand for essential products, a strong indication that e-commerce can serve as a solution right now. It is our responsibility to guarantee continuous access to these products to facilitate social distancing, help our country and serve our clients, “said Ehsan Saya.

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

Daraz is confident that insights into consumer behavior and the demands provided in the Index will be fruitful for industry stakeholders and help fuel the digital revolution in the country.