Daraz's 11.11 shopping festival to support more SMEs amid economic challenges

Daraz, the country's leading e-commerce platform, is launching its 11.11 shopping festival on 11 November, offering Tk50 crore in vouchers, flash sales up to 80% off, and deals on high-value items like appliances, furniture, and mobile phones. This year, Daraz is focusing on supporting SMEs in tough economic situations. Daraz Bangladesh Chief Corporate Affairs Officer AHM Hasinul Quddus Rusho shared the platform's vision in an interview with The Business Standard. He was interviewed by Ahsan Habib Tuhin.

The political unrest has brought economic challenges, particularly for small and medium-sized enterprises (SMEs). From your perspective, what role can e-commerce play in revitalising these businesses?

E-commerce has become a lifeline for an increasing number of SMEs, especially during tough economic times. Daraz acts as a virtual marketplace to help these businesses reach a wider customer base beyond their local areas.

We're helping SMEs to stabilise and even expand with advanced digital tools, logistical support, and more customer reach. Platform-wide shopping festivals like our 11.11 sale help these businesses gain more exposure and sales opportunities, which are essential for growth in challenging times.

The highly anticipated 11.11 campaign, the biggest sale of the year, is approaching. How is Daraz preparing for this event, and what can customers expect in terms of deals and surprises?

Daraz 11.11 promises incredible deals and surprises for our customers. This year, we're offering Tk50 crore in vouchers, flash sales of up to 80% off, and unbeatable deals on high-value items like appliances, furniture, and mobiles.

Customers will also enjoy free delivery on all products, and additional discounts with our payment partners like bKash and Nagad. It's a fantastic opportunity to enjoy the best deals of the year.

Who are Daraz's key partners for the 11.11 campaign, and how are they contributing to the event's success?

We're partnering with 20 plus leading brands, many of which are launching exclusive collections for 11.11. Our payment partners — more than 15, including bKash and Nagad — are also playing a crucial role by offering attractive discounts, such as 15% off on 11 November. These collaborations help provide the customers a premium shopping experience with killer deals.

The 11.11 campaign has always been a major e-commerce event in Bangladesh. How has the response been so far regarding consumer engagement and participation from SMEs?

The anticipation for 11.11 has been immense, with a record number of SMEs participating this year. Consumer engagement has also been strong, with significant growth in pre-orders. Our seller connect initiative engaged over 250 sellers, providing them with tools to enhance customer experiences, which has led to increased participation and excitement.

With increased traffic and demand during 11.11, how is Daraz ensuring a seamless shopping experience for customers?

Our logistics team has made extensive preparations to handle the surge in orders. We've optimised warehouse operations and delivery routes to ensure timely deliveries.

The reintroduction of our instant refund feature and customer compensation programme will also provide a smooth experience, covering any unexpected delays or issues.

As Bangladesh's leading e-commerce platform, what long-term goals does Daraz aim to achieve through the 11.11 campaign, especially in terms of driving growth for the e-commerce sector?

11.11 is no longer just a sales campaign. We've seen the power of the shopping festival becoming a catalyst for growth of all stakeholders in the e-commerce ecosystem.

Through this year's 11.11, we aim to set new standards in e-commerce, ultimately improving digital literacy and helping more SMEs to join the platform.

By making online shopping more accessible and reliable, we're driving sector growth and setting the stage for future digital transformation in Bangladesh.

Many customers are still hesitant about online shopping. How does Daraz address concerns around the credibility and reliability of e-commerce?

Indeed, trust is paramount in the realm of online shopping. Our platform is dedicated to providing transparent and well-defined refund policies, thereby safeguarding the interests of our valued customers. We are committed to continuous improvement, striving to ensure a seamless user experience.

Additionally, we prioritise educating consumers about our robust safety measures, fostering a sense of comfort and confidence in the credibility of online shopping.

E-commerce is growing, but there's a gap between Dhaka and other regions. How is Daraz approaching this challenge and working to expand online shopping access across the country?

It is a common practice for businesses to operate in densely populated areas with high purchasing power. However, Daraz Bangladesh stands out by having a presence in all 64 districts of the country. Notably, over 50% of our buyers and a significant number of sellers are located outside of Dhaka. We've also invested in localised delivery solutions and continue to introduce sellers from these regions to the platform, making online shopping accessible to more people nationwide.

What specific challenges are country's e-commerce platforms facing amid the current economic environment?

One of the primary challenges faced by e-commerce platforms is the lack of a comprehensive policy framework. The current regulatory landscape is fragmented, with existing laws often inapt to the unique characteristics of the e-commerce industry. This creates uncertainty and hinders the growth and sustainability of the sector.

A robust, industry-specific policy framework is essential to address this challenge. Such a framework should clearly distinguish e-commerce from traditional business models and also provide clear guidelines on taxation, financial regulations, consumer rights, and other relevant areas. It should also foster innovation and encourage fair competition.

By establishing a conducive regulatory environment and establishing a single overarching authority, the government can unlock the full potential of the e-commerce industry. This will not only increase tax revenues but also enhance customer service and consumer confidence.

A well-structured policy framework will offer businesses the clarity and assurance they require to flourish, ultimately benefiting all parties involved, including ensuring foreign direct investment.

As the country's leading e-commerce platform, what is Daraz's vision for the future, especially in supporting local businesses and fostering economic growth?

Our vision is to drive digital inclusion by making e-commerce accessible to all. Supporting local businesses is an essential part of that, especially the SMEs who are the economic pillar for the country.

We have been empowering SMEs with technology-powered tools, resources, and knowledge to grow sustainably on our platform. Over the next few years, we aim to continue to strengthen our ecosystem, nurture more digital talents, create value for thousands of sellers, consumers, and ultimately contributing to the nation's economic growth.

Can you share some specific initiatives or tools Daraz has introduced to empower SMEs in Bangladesh?

We've introduced various programmes tailored for SMEs, such as Daraz University, a complete learning centre to help sellers grow their business from scratch on Daraz, Seller Connect, where aspirant sellers receive valuable insights into campaign strategies, promotional tools, operational best practices (to enhance customer experience), and effective compliance management, and incubation programmes like Early Bird and New Seller Package. These provide critical resources like free shipping options, vouchers, and access to business advisers. Our seller training modules also focus on price competitiveness and customer engagement, helping new businesses establish a solid online presence.

With recent reforms in Bangladesh, could you provide an overview of the current state of Bangladesh's e-commerce industry? How have these changes shaped the market?

Bangladesh's e-commerce industry has evolved significantly, especially with the ongoing digital transformation. The recent reforms have strengthened the sector by enhancing transparency and digital literacy among both consumers and sellers. These steps incentivised more small businesses to go online, contributing to a robust marketplace with more product variations and happier customer experiences. We're also building stronger partnerships and infrastructure, which is crucial for a healthy and sustainable e-commerce ecosystem in the country.

As the country's top e-commerce platform, who does Daraz see as its main competitors, and what differentiates Daraz in this rapidly growing sector?

We have been Bangladesh's leading e-commerce platform since inception. And we are constantly reinforcing our strengths to win more sellers and consumers who are not yet on Daraz, but maybe have started to test online shopping in social commerce. What sets Daraz apart is our 360-degree approach — we offer a full-fledged e-commerce ecosystem, from advanced logistics and secure payment solutions to customer service. This comprehensive infrastructure helps us provide a seamless, reliable shopping experience.

Daraz has completed 9 years in Bangladesh, which is a significant milestone. Could you reflect on the journey so far and the key challenges and achievements along the way?

First and foremost, I would like to express my deepest gratitude to all of you for your unwavering support over the past nine years. It's been an incredible journey. When Daraz first started, the concept of online marketplace was still very new here. Over these nine years, we have successfully established trust among active users and thousands of sellers on our platform, developed an extensive logistics network, and implemented robust technology to make e-commerce accessible for a large base of sellers and consumers. We are proud of the key achievement of making Daraz a household name, while aware of the challenge in transforming more Bangladeshi consumers to embrace digital shopping. But our growth speaks to the hard work and the support of our loyal customers and sellers.

Where does Daraz see itself in the next 5 to 10 years, both in terms of its impact on Bangladesh's economy and its contributions to the global e-commerce industry?

The world is undergoing a significant digital transformation, and the future lies in embracing this digital landscape. Daraz is playing a pivotal role in shaping an e-commerce ecosystem in Bangladesh that fosters digital literacy, attracts new logistics companies, and increases fintech penetration. Notably, we are witnessing a shift in societal preferences, with individuals increasingly drawn to entrepreneurship rather than traditional job seeking. These trends are direct consequences of the rise of digital commerce. Our vision is to position Daraz as an integral component of the economic landscape, driving digital inclusion and empowering countless small and medium-sized enterprises. We see ourselves setting the benchmark for digital commerce in South Asia.