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pom case

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pros and cons of managing inventory within a company versus using a vendor-managed inventory system. It
uses a sales event by Daraz as an example to illustrate how logistics can struggle with increased demand and
suggests ways to handle such situations.
how to engage international brands on Daraz.
Muneeb's considerations for listing international brands on Daraz.pk. He's weighing three options:
1. importing products himself,
2. having brands use a distributor,
3. or having brands enter Pakistan directly.

pros and cons like cost and logistics.

feels pressure from competition that ecommerce plateform enters and competing with daraz.
Company Background:

funded by rocket Internet

clothing (doubt)

continued (high demand and trust in brands)

2014 electronics (risky and expensive to manage inventory)

new business model (to a marketplace where sellers list products, and Daraz takes a commission on
sales.

In 2016 (500 workers)

2,50,000 visits per day and grew sales

new competititor (Daraz Logistic Partner)

Daraz wanted to be the top place for product info in the country, believing that even if just a few
visitors bought something, it would be worthwhile.
Customers:
five main types of customers:

those who want cheap prices

having lots of options

who don't live near big cities

want to buy new products early

prefer to avoid crowded store events.
Product Selection: (key objectives)

only allows real product to be sold on its website.

fake and unauthorized are very common to be sold in online markets.

come with warranties from brand or official distributors

pay attention to market trend

offer items that are in high demand
Website Managment and Marketing: (key strategies)
how Daraz manages its online platform and marketing strategies.

online system was developed and maintained by external companies (Portugal and Germany)

content and product descriptions on the website are overseen by an in-house team to ensure
quality.

Daraz also emphasizes its fashion identity by using stylist recommendations.

giving pirority to new arrivals and top sellers
They target users based on their:

intrests

browsing history

offering discounts

suggest complementary products
Dsat score
Vendor Managment

Acquistion team

Incubation

Vendor Managment

Operations
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