Ali Focused On Cross-Border Platform To Start A Comprehensive Investment.

In May last year, Alibaba acquired all the shares of Daraz, a Pakistan electricity supplier company. As part of the global ecosystem of Alibaba, Daraz has completed its own upgrading with the help of Alibaba large scale system.

As the "contact" of Ali into the South Asian market, it began the road of development in the cross border blue ocean market.

It is understood that Daraz was founded in 2012 as an e-commerce company, and is also one of Pakistan's popular shopping platforms. Its business also faces Bangladesh, Burma, Sri Lanka and Nepal.

The products on its platform include electronic products, clothing, cosmetics, auto accessories and various daily necessities.

By the end of March this year, 5 target market countries of Daraz have all opened cross-border businesses, and the 5 countries have begun to invest in Chinese sellers.

Billion power understands that South Asia, backed by the "one belt and one way" policy, is a key market supported by the state's foreign trade. Of the 5 target countries, Daraz has a total population of about 500 million, with 90% of the local network consumers, of whom 60% are below the age of 35.

At present, the average growth rate of the global network users is 7%. In addition to the average growth rate of Sri Lanka and the global average, the other 4 target countries of Daraz are growing at a speed of 3-4 times higher than the average growth rate.

Recently, at the Alibaba cross-border summit, Daraz Jan Philipp Poeter, the head of cross-border business, and Summer, a cross border business operator, shared the development of Daraz and its investment plan.

　 The following is the record of the speech:

Jan Philipp Poeter:Daraz was acquired by Alibaba in May last year, and Alibaba system was launched in October. Now it is the first official appearance to let cross-border sellers make Daraz platform.

Daraz provides a bridge and platform for China's cross-border sellers, which can sell products to South Asia's blue ocean market.

At present, after upgrading the Daraz system, the whole platform is very similar to Lazada and fast selling. It is also an important step in the global ecologicalization of Alibaba.

I want to emphasize that "quality is greater than quantity", because many cross border big sellers are used to distributing goods, but when we invest in Daraz, we will be more selective in selecting sellers who have good product quality and good service quality.

Summer: let me introduce the development of Daraz. Daraz has been established since 2012, and the Daraz Express has been launched in 2016 to achieve the end of the day delivery.

In May 2018, Daraz was acquired by Alibaba, and the Alibaba system was upgraded in October 2018. At the same time, Daraz also started cross-border business.

By the end of March this year, all 5 target market countries of Daraz have already opened cross-border businesses, and these 5 countries can also face the investment of Chinese sellers.

What we may care more about is the target market population, network coverage and consumption capacity. At present, the number of people in South Asia has reached 500 million, and the next level of prediction is 880 million.

In terms of Internet users, the global average growth rate is 7%. In addition to the average growth rate of Sri Lanka and the global average, Daraz's other 4 target market countries are all above the average growth rate of 3-4 times.

We can see from the consumption data of customers purchased from Daraz platform that big fashion is a very popular category, and our target audience is very young, 50% of whom are women.

Apart from population base, network environment and purchasing power, sellers may be concerned about what resources Daraz can provide.

Alibaba is a technology driven company. We are also attached to such a powerful system.

Like this, a project in October last year, more than 500 employees from 6 companies in 13 countries in 9 countries invested in the project to upgrade Daraz from the ROCKET system to the Alibaba system, and it was very successful.

In the whole logistics process of head, clearance and tail, the three links. Daraz is mainly responsible for terminal delivery. Our requirement is the next day. At the same time, in the first step, the time limit for the seller's delivery is 5 working days, and the overall Daraz duration is about 17 days.

The payment method of Daraz is divided into two parts. For one part, the order of the whole platform 90% is cash on delivery, and a small number of consumers will adopt the prepayment method.

At present, Daraz has only one payment partner called Payoneer, mainly using it to make us dollar settlement.

In obtaining traffic, some people may know that the Daraz target market Facebook user volume, and even more than some European and American countries, so Daraz will spend a lot of energy on Facebook to advertise for drainage. There were also some sellers' feedback that we found higher traffic than some Southeast Asian countries.

In addition, Daraz APP is Daraz's reference to the concept of Lazada, which has made a special entry to cross border seller products. All of our cross-border sites have already entered the entrance.

When you see this APP page, there is a red part, which is a direct entry to the seller, for example, you have many brand products, and the performance is very good. After entering the Top seller, Daraz can give priority to this entry, directly bring into the flow.

Daraz also has many promotional tools. All Lazada functions will be available in the future. For example, Chinese people like to shake, and Daraz also has this function.

In addition, we suggest that sellers do shop packing so that more people will pay attention to your shop.

When consumers are concerned about your store, your store has any updates, such as discount updates, coupons expiration, etc., will send mail to fans, so this is a very good channel to promote fans to buy again.

Daraz also has a very important function, which will tell you which part of the store brings about the conversion rate, and the customer manager will communicate with you about the activities, activities, and location of the activities you want to take part in.

When the seller knows the effective conversion rate, he knows what activities need to participate, because it is very important that there is a real conversion rate support.

At present, the top five types of hot items in Daraz include women's clothing, watches, stereo headphones, mobile phone accessories and auto parts. Next, Daraz will have a lot of big promotion, and will open up investment channels.