Gone are the days of elbowing your way through sweaty hordes of people milling about Abid Market in Lahore or driving all the way to Saddar in Karachi only for it to take you longer to find parking than it did to get there or to buy whatever you were looking for. Shopping has changed – all shopping has changed – with the advent of ecommerce. But most significant for ecommerce has been the electronics goods department.
People still have some hesitancy buying Items such as clothes, shoes, makeup, or perfumes online. These are things they like to feel in their hands, try on, and experience in person before they buy them. Electronics are a much simpler ball game. You can simply sit at home, not have to go through a salesman throwing jargon at you, compare different options, and be assured that the item will be as described.
This is why many consider consumer electronics to be the backbone of ecommerce around the world. In fact, consumer electronics is the highest revenue contributor for ecommerce globally and is assumed to generate the highest GMV in leading markets across the world. Global research also suggests that 53% of retail electronics sales in the year 2020 were done on ecommerce platforms.
What are electronics sales like in the Ecommerce space?
On June 16th, the Daraz Mobile Week was launched which would go on up until the 23rd of June. With new offers everyday focused on not just mobile phones but a whole range of electronic items, it is clear that Daraz is trying to tap in more to its consumer electronics market. And why wouldn’t they? It has been wildly successful.
In Pakistan, Daraz’s numbers tell a story of dominance that the consumer electronics market has in the ecommerce space. One of the leading platforms in Pakistan that pioneered ecommerce in Pakistan, says that electronics has a 40% share among all categories, making it the most popular category on their website.
As one of the biggest ecommerce players in Pakistan, the statistics from Daraz are telling about consumer spending habits in the ecommerce space. In the year 2020, more than 1.7 million buyers purchased electronic products through their platform. More than 4 million orders were placed resulting in upwards of 5 million items sold. Daraz Pakistan was able to receive an average of more than 900,000 page views on a daily basis. All of this screams one thing: people are comfortable buying electronic products through ecommerce.
Within Daraz’s general categorization of ‘consumer electronics,’ they then have subcategories that are also telling. Air conditioners posted the highest GMV throughout 2020 and managed to contribute 12% to the total, meaning that people were willing to buy high priced items. Play Stations also proved to be good drivers of sales. More than 200,000 individuals ordered Play Stations from Daraz during the year. In addition, smart televisions, washing machines, traditional laptops, LED televisions, smart watches, refrigerators, and food preparation units have also been popular.
Headphones proved to be the most demanded products resulting in 1 million items sold throughout the year; that averages out to more than 83,000 in a month. This shows that with smaller items there is a greater willingness to make snap buys. In fact, Headphones, phone cases, play stations, cables and converters, and screen protectors prove to be the top 5 products bought within the electronics category. This may be because consumers are less scared ordering smaller ticket price items online in comparison to big purchases. Most of these purchases are made in Karachi and Lahore.
In addition to these products, Bluetooth and wireless headphones, free fire finger sleeves, Xiaomi Redmi airdots, fitness smartwatch for android, SanDisk Drive, authentic thunder T-50, Logitech mouse pad, washing machine cover, universal mobile clip holder, and Mobile camera lens proved to be the most popular products in Pakistan that are sold on Daraz.
Mobile Week 2021
In terms of revenue, mobiles and tablets accounted for nearly half of all revenue for the electronics category. TV, audio, gaming and wearables made up 22% of revenue, followed by 16% revenue coming in from home appliances, 11% from computer appliances, and 3% through the sales of cameras on Daraz.
With this information, it was very clear where people were most willing to spend money on an ecommerce platform. It was with this in mind that Daraz launched its Mobile Week, which started officially on the 16th of June and will continue up until the 23rd of June. And while the week has been called ‘Mobile Week,’ the products sold are not restricted to just mobiles, but include other electronics as well.
“The Mobile Week will make Pakistani’s enter a new age of shopping. The sale promises to give customers an entertaining experience. Customers are urged to tune into Mobile Week as there will be something new to grab each day,” says Ibaraheem Khan, Head of Electronic Brands at Daraz. Considering the growing trend with electronic purchase online it is expected that Mobile week will draw in a number of customers for Daraz.