Client Name

Daraz Pakistan

Faculty Advisor

Mr. Kamil Yousuf

SBS Thought Leadership Areas

Behavioural Studies

SBS Thought Leadership Area Justification

The project is highly research oriented, with a strong interest in the understanding of online buying behaviour, consumer psychology, process of building trust, impulse buying tendencies, decision making process and perception of the platform in several demographic and socioeconomic groups.

Aligned SDGs

GOAL 9: Industry, Innovation and Infrastructure

Aligned SDGs Justification

It helps to understand the ways in which digital commerce platforms could help bolster technological retail infrastructure, boost online consumer ecosystems, and improve digital accessibility in the expanding e-commerce landscape in Pakistan.

NDA

No

Abstract

The aim of this report is to present the “Assortment Gap Identification and Consumer Insight Study” for the Lifestyle Category of Daraz. This study was conducted to uncover the assortment gaps, consumer behaviors, perception of Daraz in Lifestyle & Home category and provide suggestions for enhancing the competitive position. While Daraz is one of the top e commerce companies in Pakistan, the study revealed that consumers are not yet convinced of it as the main shopping platform for lifestyle and home items due to quality, authenticity, trust, product variety, and the overall shopping experience. This study used the mixed method research approach, combining both qualitative and quantitative methods. Primary research consisted of 15 in-depth interviews, 8 focus groups, and a consumer survey of 400 members from various demographic and socioeconomic groups. Secondary research included an assortment comparison of Daraz versus its major rivals, Temu, Shein, and AliExpress. Around 250-300 Lifestyle products in were suggested as high potential to bridge the assortment gap on Daraz. The findings of the study showed significant differences in behaviours of various social classes, household roles and gender. For a consumer, the quality of the product, its authenticity, trust and reviews were of paramount importance as opposed to pricing. Consumers had positive associations with the affordability of Daraz, as well as its convenience, and product variety. Furthermore, this study found that the competitors are changing the customer's expectations by their trendy product choice, product appearance, product diversity, and delivering more impressive shopping experiences. Based on these results, the report recommends improving the quality assurance process, optimizing product visualization and description, optimizing the organization of search and assortment, and improving the mechanism of building trust in the platform by verifying sellers and improving review mechanisms. These enhancements will aid Daraz to rebrand itself as a credible option for Lifestyle & Home shopping in Pakistan.

Keywords: E-commerce, Consumer Behavior, Lifestyle & Home Products, Assortment Gap Identification, Consumer Trust, Customer Experience, Discovery Commerce, Daraz Pakistan

Document Type

Restricted Access

Document Name for Citation

Experiential Learning Project

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