DARAZ
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“ We apply a lot of focus to user-generated content , reviews and ratings , then using data and algorithms to ensure the sellers of good products get more exposure than sellers with lower quality offerings ”
— Bjarke Mikkelsen , Founder and CEO , Daraz
Compared with the proximity of Mikkelsen ’ s native Denmark to its European neighbours , there is considerably more complexity and cost associated with international logistics in South Asia . “ Because a large proportion of the population in our markets have a very low income , customers will not spend a lot of money on products in one go ,” says Mikkelsen , noting that it therefore does not make sense to import low-cost items when the price of shipping will vastly outweigh the value of the product . As part of its Daraz University programme , which offers best practice advice and education for the platform ’ s sellers , the firm is looking to establish “ hyper-localised ecosystems ” through offering products to customers based not only on price and quality , but also on proximity .
This strategy is consolidated by Daraz ’ s hands-on approach to logistics , borne of the desire to expand its seller base as optimally as possible , regardless of the scope of individual merchants ’ operations . Having established its own logistics company , Daraz Express ( DEX ), which , as a digitised and fully integrated firm , represents
FEBRUARY 2020