4 Top Categories on Daraz
Daraz is the largest e-commerce platform in Pakistan. It offers various products, including fashion, electronics, home appliances, beauty products, and groceries. It was founded in 2012 and later in 2018 it was acquired by Alibaba Group. After this, it expanded operations to many South Asian countries and became one of the largest platforms. Along with Pakistan, it operates in Bangladesh, Sri Lanka, Nepal, and Myanmar. Amazon, the world’s largest e-commerce platform, is not officially working in Pakistan. So the aspiring e-commerce businessmen target Daraz. Most of the businessmen and entrepreneurs look for the top categories on Daraz which give them good profits.
Before starting any business, one needs careful planning and investment. One should also consider his experience in any category. The best category would be the one which has greater demand in the region, in which a businessman has experience and which gives a good profit margin.
However, as per our research, the top categories on Daraz are Fashion and Apparel, Beauty and Personal Care, Electronics and Gadgets, and Home and Living Products. In this article, below is a detailed overview of each category, including estimated startup costs in Pakistani Rupees (PKR) and steps to initiate the business.
Fashion and Apparel
This is one of the top categories on Daraz, it encompasses unstitched fabrics, ready-to-wear apparel, traditional clothing, shoes, handbags, jewelry, and sunglasses.
Estimated Startup Costs in Fashion and Apparel:
- Small-scale Online Boutique: Approximately PKR 300,000–500,000.
- Medium-sized Clothing Company: Around PKR 1,500,000 to PKR 5,000,000.
Cost Breakdown:
- Inventory and Supplies: PKR 150,000–300,000
- E-commerce Website Development: PKR 50,000–100,000
- Marketing and Advertising: PKR 50,000–100,000
- Miscellaneous Expenses: PKR 50,000–100,000
Steps to Start:
- Market Research: Identify current fashion trends and consumer preferences.
- Business Registration: Register your brand with the Securities and Exchange Commission of Pakistan (SECP).
- Supplier Sourcing: Connect with reliable fabric and accessory suppliers.
- Online Presence: Develop a user-friendly e-commerce website and establish social media profiles.
- Marketing Strategy: Utilize digital marketing, influencer collaborations, and promotions to reach your target audience.
Beauty and Personal Care Products
Beauty and personal care products are also one of the top categories on Daraz, including makeup, skincare, haircare products, and personal hygiene items.
Estimated Startup Costs of Beauty and Personal Care Products:
- Small-scale Beauty Brand: Starting from PKR 200,000.
- Medium-scale Operation: Up to PKR 1,000,000.
Cost Breakdown:
- Product Development and Testing: PKR 100,000–500,000
- Branding and Packaging Design: PKR 50,000–200,000
- Initial Inventory: PKR 50,000–200,000
- Marketing and Distribution: PKR 50,000–100,000
Steps to Start:
- Product Research and Development: Formulate unique beauty products that cater to market needs.
- Regulatory Compliance: Ensure products meet Pakistan Standards and Quality Control Authority (PSQCA) regulations.
- Brand Identity Creation: Develop a compelling brand name, logo, and packaging.
- Distribution Channels: Set up online sales platforms and consider partnerships with retail stores.
- Marketing Initiatives: Leverage social media, beauty influencers, and content marketing to promote products.
Electronics and Gadgets
Overview: This category includes smartphones, accessories, laptops, televisions, cameras, and gaming consoles.
Estimated Startup Costs in Electronic and Gadgets:
- Small Electronics Retailer: Approximately PKR 500,000–1,000,000.
- Medium-sized Store: Up to PKR 5,000,000.
Cost Breakdown:
- Initial Inventory Purchase: PKR 300,000–2,500,000
- Store Setup or Website Development: PKR 100,000–500,000
- Licensing and Permits: PKR 50,000–100,000
- Marketing and Promotions: PKR 50,000–200,000
Steps to Start:
- Supplier Agreements: Establish relationships with authorized distributors or manufacturers.
- Business Registration and Licensing: Obtain necessary licenses from local authorities.
- Physical or Online Store Setup: Depending on the model, set up a retail space or an e-commerce platform.
- Inventory Management: Implement systems to track stock levels and manage orders efficiently.
- Marketing Strategy: Use digital marketing, tech blogs, and online forums to reach potential customers.
Home and Living Products
This category covers wall art, cushions, lamps, rugs, kitchen appliances, and bedding.
Estimated Startup Costs in Home and Living Products:
- Small Home Décor Shop: Around PKR 300,000–700,000.
- Medium-sized Store: Up to PKR 2,000,000.
Cost Breakdown:
- Inventory Acquisition: PKR 150,000–500,000
- Store Interior Design or Website Development: PKR 100,000–300,000
- Marketing and Advertising: PKR 50,000–100,000
- Operational Expenses: PKR 50,000–100,000
Steps to Start:
- Market Analysis: Identify popular home décor trends and customer preferences.
- Supplier Sourcing: Partner with local artisans or wholesalers for unique products.
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Kawish Bangash studies at the Department of English Quaid-e-Azam University Islamabad.