SHAN ’ S SUCCESS ACROSS CONSUMER GROUPS IN PAKISTAN AND BEYOND
sumption but is also less likely to engage based on product quality or to become repeat customers . Higher margin discretionary products should rather focus on higher LTV users with a focus on nationally scalable marketing strategies that resonate across income groups .
• Value is measurable and apparent to customers — deliver it to convert and retain them . A successful model to cater to the majority of users in Pakistan requires a value-first approach that delivers immediate savings . A strategy that highlights your pricing advantage along with your ability to offer superior convenience provides an immediate and obvious value add , fostering natural virality . When examining Income Groups 2 and 3 , there is sufficient collective spending power and improved per capita income , allowing for a broader variety of SKUs to be consumed . While price sensitivity remains high , these groups exhibit greater trust in technology . This is significant because high trust in technology correlates with higher education levels , income , and digital adoption — factors strongly associated with clear and rapid upward mobility in income level 1 .
• Purchase frequency is king for mass affluent consumer targeting brands . The top half of Group 3 , along with Groups 4 and 5 , constitutes the immediately addressable mass-affluent user base . These consumers are drawn to premiumisation , value productivity hacks , and exhibit a blend of individualistic and collectivist buying behaviours . These groups are almost like one social block that is trend driven , with complex socio-economic signaling behaviours . Leveraging these behaviours can be more critical than focusing solely on product quality . This involves enabling Buy Now , Pay Later ( BNPL ) options to enhance affordability , creating rewards programs , and cultivating brand ambassadors who are recognized trendsetters .
CONCLUSIONS
Here are some key takeaways from our research that can help brands better understand and frame the consumer opportunity in Pakistan :
• The consumer market in Pakistan is complex , with consumer staples offering a large and deep market that enables platforms to reach the long-tail of consumers .
• While moderately segmented , the consumer market largely gravitates towards value-based purchasing .
• Scaling a true consumer business in Pakistan through online channels like paid ads is both limited and expensive .
• The best brands in Pakistan have built businesses by optimising conventional behaviours and practices across the population .
SHAN ’ S SUCCESS ACROSS CONSUMER GROUPS IN PAKISTAN AND BEYOND
Shan Foods is an example of a company that demonstrates a deep understanding of its consumer market , successfully building a brand that resonates across multiple income groups in Pakistan
A producer and packager of spice and spice mixes in Pakistan , Shan has become an iconic brand in Pakistan and beyond , gaining traction in South and South-East Asia , the GCC , Europe and North America . Before Shan ' s arrival , spices and spice mixes were a highly segmented consumer product with extremely fragmented distribution The key to Shan ’ s success lies in maintaining a focused selection of spice mixes they excel at , upholding strict quality standards , and ensuring affordability across all income groups . Additionally , Shan has built a brand that evokes nostalgia , reminding customers of home , loved ones , and special occasions . This deep connection with their customers has been the defining factor of the brand for over 30 years . The fact that the company never took a single dollar of debt is a testament to the organic distribution they have built through sheer perseverance and customer empathy . Mobility platform Bykea , online payment app EasyPaisa , and fashion brand Khaadi are other examples of companies having achieved success across various income groups in Pakistan .
• Pakistan ’ s middle class , the youngest and fastest-growing segment , is crucial for any successful consumer business , both now and in the future .
• Although the online consumer market may be limited in the short term , it is poised to become one of the largest globally in a multi decade time frame , driven by demographics alone .
1 Our hypothesis here has been proven correct with our investment in Deal Cart . Over a year , AOVs increased by 3-4 times across the platform as a result of laser-focus on building an online grocery led retailer that delivers the best prices to its customers . With better AOVs come better economics and a clear move into profitability ; after all a 10 % contribution margin on $ 10 is still less than 5 % on $ 25 .
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