Bangladesh Brand Forum organised the first-ever Daraz presents “Bangladesh eCommerce Summit 2022” powered by Dotlines, in association with Ecourier & The Business Standard on 4th June 2022. Themed “Revitalising the eCommerce Industry” the conference was designed to bring together the leading local and global industry professionals, decision-makers and thought leaders under one roof to exchange and share their experiences about all aspects of e-commerce. It also provided a multidisciplinary forum to present and discuss the most recent trends, strategies, challenges and solutions in the field.
The day-long summit emphasized the continued rise of e-commerce and how covid changed the landscape for the e-commerce industry in Bangladesh. The summit brought together a large and diverse community of change-makers brands and established retailers altogether. The Summit engaged the foremost Leaders, Global Experts, who shared their knowledge on the key trends. Additionally, leaders in the industry shared their insights of the marketplace and methods to overcome the challenges of tomorrow.
A grass-roots movement stirred up the conversation on the potential of selling online, a place to educate & raise awareness on the inner workings of e-commerce & driving the growth of e-commerce in Bangladesh. This summit aimed to build a sustainable e-commerce ecosystem and explore what the future of retail will look like as consumers continue to embrace new ways of buying in our ever-increasing digital world.
The summit also explored challenges through interactive panel discussions and deep dive discussions with smaller groups.
Bangladesh eCommerce Summit 2022 housed 03 Panel Discussions, 03 Keynote Sessions, 04 Insight Sessions, 03 Case Studies, and 01 Fireside Chat. The highlights of the event are as follows:
Opening Remarks
Nazia Andaleeb Preema, Director & Creative Editor, Bangladesh Brand Forum, shared the philosophy and the core perspective behind “BANGLADESH E-COMMERCE SUMMIT 2022” in the Opening Remarks. She stated, “ BANGLADESH E-COMMERCE SUMMIT 2022 is Bangladesh Brand Forum’s first attempt to understand the key issues of the e-commerce sector and find out how Bangladesh Brand Forum can assist the sector to grow sustainably.”
PANEL DISCUSSIONS
Business Resilience: Recipe to Success for E-Commerce
Moderated by Waiz Rahim, Founder & CEO, Deligram the panel titled “Business Resilience: Recipe to Success for E-Commerce” featured Ambareen Reza, Co-Founder & Managing Director, foodpanda; Biplob G Rahul, Founder & Chief Executive Officer, eCourier; Ilmul Haque Sajib, Co-Founder, Sheba.xyz; Khondoker Tasfin Alam, Chief Operating Officer, Daraz Bangladesh; Rezwanul Haque Jami, Head of eCommerce, a2i – Aspire to Innovate; Chairperson Policy Standing Committee, e-Commerce Association of Bangladesh (e-CAB).
The insightful discussion revolved around factors irresistible and optimising for the growth and sustainability of the e-commerce industry. E-Commerce will be the new commerce of the country. However, gaining the trust of the remote village people by adopting the new medium is crucial for the industry’s growth.
Alongside that, the main revenue stream of an e-commerce vendor depends on the commission of their customers’ purchases, which is directly proportional to the basket size of the customer, and their logistics support.
In the running landscape of e-commerce, the sentiment of “growth at any cost” is gone. Sustainability comes with profitability, and profitability comes from efficiency. Another concern regarding e-commerce business remains targeting the audience. The discussion articulated that consumers should be targeted according to their needs; not based on their income category.
From Heart to Cart: Creating A Love Language Between Products & People
The insightful session was moderated by Ashiqur Rahman (Rean), Chief Growth Officer, Dotlines including Asikul Alam Khan, Founder & CEO, PriyoShop.com; Morin Talukder, Co-Founder & CEO, Pickaboo.com; Sinthia Sharmin Islam, Co-Founder & CCO, Shajgoj Limited (shajgoj.com) as panellists.
The discussions explored the ways how a brand can strengthen its connection with customers and create a recallable service. Quality content plays a crucial role in connecting a brand with the consumer to build awareness and convert users toward that brand. Authenticity, fast and efficient delivery, and working with the supplier through innovation are the key factors in creating a recallable service. A brand must know how to care for its target audience before it can expect caring from other ends. On that note, Discounts only add short-term value, but innovative after-sells services add long-term value.
But for people living in remote areas with limited retail shopping malls; online platforms, and domestic e-businesses are the only sources for getting authentic branded products. Therefore, Local brands and manufacturing companies have a lot of opportunities in the next five years. Without mention, it is necessary for e-commerce companies to build their platform according to what customers want; not according to what products or services the companies want to sell.
The Rise of D2C E-Commerce: Connected Ecosystem for Frictionless Experience
Moderated by Tanzeen Ferdous, Consultant, the discussion included Sagnik Guha, General Manager, Head of Marketing & eCommerce, Apex Footwear Limited; Zakia Zerin, Sr. Manager, Consumer, eCommerce & Digital, Nestlé Bangladesh Limited.
D2C refers to the practice of selling a product directly to the consumer via a company’s own web store, thus bypassing third-party retailers or wholesalers. The model enables a brand to connect directly to the customers. Customers get far more choices on a D2C model vs a traditional B2C model. Additionally, it is a far superior e-commerce model in comparison to a B2C model in terms of efficiency and service; as a D2C model can integrate its consumer data more effectively.
In a D2C model, brands can create their own service experience around the product in contrast to a B2C model where there may be a gap between the product and the overall service.
Even though there was a boom in the e-commerce market during the pandemic, 50% of the e-commerce platforms could not sustain due to their lack of customer understanding.
However, the e-commerce ecosystem is quite big; and a platform needs the right strength, the right resources at the right place at the right time to survive in the D2C marketplace.
The way D2C delivers an overall better customer experience, it also has a higher risk of making or breaking a brand in terms of reliability and consistency of the service; which requires much more technical and intellectual resource deployment compared to using a B2C model.
Consumer data and customization can be better integrated into a D2C model as the whole ecosystem revolves around the brand experience.
our sources can be integrated into our online journey much more effectively in a D2C model. D2C can not only be integrated into an online platform fashion but also as a KIOSK solution that can add brand equity through a seamless shopping experience.
Moreover, A large part of e-commerce in Bangladesh is f-commerce or social (Facebook) commerce; whose value and volume are arbitrary and almost impossible to aggregate together. If aggregated successfully, it can help become the foundation of Bangladesh’s future D2C channel.
KEYNOTE SESSIONS
E-Commerce in Bangladesh: Recent Trends Challenges, and New Directions
Fahim Mashroor Co-founder and CEO, BDJobs.com Ltd. hosted the first keynote session of the day titled “E-Commerce in Bangladesh: Recent Trends Challenges, and New Directions.”
The statistically sound discussion shed light on the recent status of e-commerce in Bangladesh alongside the factors driving the future of the industry.
The current market size of e-commerce is 9,000 Crore BDT, growing at 30% YoY (year-over-year) in the last 3 years, and is expected to grow to 24,000 Crore BDT in 2025. In fact, the average basket size of the e-commerce market is about Tk. 800. While Dhaka is still 50% of the market, the top cities cover 75% of the volume.
Online consumers in Bangladesh are about 20 lakhs in number, less than 2% of the national population. But cross-city delivery and shipment have been exponentially growing in recent times. The industry is delivering over 350,000 delivery shipments via online purchase.
Another aspect remains the gaining momentum of Social Commerce which is driven mostly by female entrepreneurs. However, 2021 has been the black year for e-commerce in Bangladesh as over 5 lakh people have lost money by giving advance payments to Pyramid/Ponzi schemes. However, Customers are more aware now of valuing service over price discounts. Government should ensure that customers are not cheated by any online sellers. In the meantime, Tax and VAT policy should be revised to make the same level playing field for retail and online sellers. It is also not desirable to create new entry barriers for small online entrepreneurs. Government should make sure online retail is not dominated by a single dominant player. An Open Network for Digital Commerce (ONDC) will help eliminate the need for a central intermediary and democratize digital commerce.
Online retail and e-commerce can significantly solve the problem of youth employment in the country; which in the next years can directly create additional 5 million new jobs, both full-time and geek. It can support other SME industries, including both manufacturing and service industries, by expanding the market across the country. Consumers, mainly semi-urban and rural people, can benefit hugely by getting enough options to buy to improve their lifestyles.
The Indian Beauty Market and the Rise of D2C Players
In the keynote session Aparna Giridhar, General Manager, eCommerce, Hindustan Unilever Ltd discussed the prospect and emerging beauty market of India.
Currently the Indian beauty and personal care market is a Billion Dollar industry with enough headroom to grow in the next 5 years.
India is rising in the curve of beauty and personal care purchase; where there is a market opportunity of $28 Billion by 2026 with untapped supply chain and operational efficiencies. The beauty and personal care industry is perfectly poised by the D2C players and is dominated by large FMCG companies. Even though the market is exponentially growing, India did not have many significant new brand launches in the past decade. The market is dominated by legacy brands. Despite the marketspace being dominated by legacy brands, there is a great opportunity of creating white space for offering, or the ability to create a brand affinity in the beauty and personal care market. However, Asia’s D2C beauty and personal care landscape have more than 80 players consisting of personal care, cosmetics, and men’s grooming.
The D2C beauty and personal care brands are winning because of clear brand positioning, agile DNA and asset-light operations, a plug-and-play supply chain, and flexible distribution.
Besides, customers have higher trust in the marketplace due to their past experiences, return/refund services, and standard policies.
Tony Hulton, Group Director, Corporate Affairs & ESG, Daraz conducted the final keynote session. He spoke about the inclusion of SMEs in the e-commerce industry and the way towards sustainability.
He asserted that the key issue in e-commerce is taking advantage of the e-commerce market.
Additionally, SMEs are the key players to focus on to innovate the e-commerce industry.
In fact, the development and nurture of SMEs should be focused on while personalizing the shopping experience of the customers. Moreover, CSR should be maintained to retain customers in the long run.
INSIGHT SESSIONS
E-Commerce in the Next Normal: Technology and Trend in Southeast Asia
Rashedun Nabi, Operations Director, Next Billion PTE Limited, Startup Advisor and Mentor, conducted an insight session on E-Commerce in the Next Normal: Technology and Trend in Southeast Asia.
He asserted that The post-pandemic customer journey will bring about the phase of omnichannel shopping. He further addressed that Top trends in the new normal include the growing volume of voice search, learning towards sustainability, and more payment to reduce cart abandonment. Additionally, Rising Acquisition Costs force brands to foster long-term relationships with their customers.
DEMOCRATIZING E-COMMERCE
Mahbubul Matin, President, Dotlines, conducted an insight session on democratizing e-commerce.
The main significant factor that separates e-commerce from other commerce is that e-commerce is the only marketplace where the buyer and the sellers are not physically present during the entire customer journey as IT bridges the gap of physical presence requirements. E-Commerce is now U-Commerce (Ubiquitous Commerce); because technology is all around us, connecting our day-to-day lives in every step.
However, The ecosystem of e-commerce has three key factors; buyers, influencers, and sellers.
The opportunities of e-commerce can be identified from these three factors; the buyers who are not yet reached, the influencers who are not capitalized, and the sellers who are not yet online.
The very essence of E-Commerce is the same all around the world; it only needs to be contextualized with the country’s demography, economy, culture, socio-political environment, and governance. Moreover, The core problem from the seller’s perspective in e-commerce is handling the discovery phase; which includes the lack of marketing communication and digital communication understanding. Many foreign e-commerce brands and services cannot survive in the local marketplace; as we’ve set various unnecessary consumer expectations due to hyper-competitiveness amongst the sellers.
Myths and Reality in E-Commerce
Zeeshan Kingshuk Huq Change-maker, CXO & Entrepreneur in an insight session discussed and showcased Myths and Reality in E-Commerce.
He asserted that E-Commerce may represent 50% of the retail market in the future, but it won’t replace the retail market completely. Even though people like the touch and feel of retail buying, they still prefer the convenience of e-commerce. Additionally, People don’t always want lower prices on e-commerce, but rather the efficiency and reliability of the platform. Regarding the entrepreneurs, he stated that a website is not the total plan of an online business. An entrepreneur needs to actively search for investment instead of assuming investors will find him. Besides, rather than spending a lot of money on ads; a platform just has to spend smartly.
Analysis of Technology Acceptance Model (TAM) and its impact in Bangladesh for Online Real Estate and Livestock Market: Research Findings
Dr. Rafiuddin Ahmed, Associate Professor, Marketing, University of Dhaka & Digital Transformationist, conducted an Insight session titled “Analysis of Technology Acceptance Model (TAM) and its impact in Bangladesh for Online Real Estate and Livestock Market: Research Findings”.
“It takes 5 years to build brand value in e-commerce platforms but takes 1 day to take it down,” he started.
The majority of us use 20% of our smartphone’s capabilities; 80% is still unexplored. We need to focus on soft skills and non-cognitive skills from an early age in our education system alongside technical knowledge. We all know AI will be the future of tech, and to combat that our graduates need to focus on emotional intelligence to survive.
Emphasising the impact of Covid, he remarked, “If our world was a hard drive, the COVID-19 pandemic came and formatted our hard drive. And now we’re approaching this post-pandemic economy from a new perspective where limitless opportunities are developing in the tech industry.”
Whereas, The job of an entrepreneur is to fill in the gaps between consumer demand and product/service supply; and whoever fills in the most gaps eventually becomes the best entrepreneur due to having the first mover’s advantage. Whoever moves first, the journey for them is the toughest. But at the same time, it is the most fruitful in terms of brand recall value.
Regarding the TAM model in our e-commerce ecosystem, he pointed out the following objectives:
- The focus should be given to macroeconomics.
- Need analysis for the industry should be of importance.
- UI and UX should be integrated with ease of use.
- Attitude toward the technology and the service offer should be consumer-centric.
- Behavioural intention and acceptance should be catered upon.
Case Study
Chaldal: A Work in Progress
Zia Ashraf, Co-Founder & COO, Chaldal, joined the summit to discuss a case study on the progress of Chaldal.
A micro warehousing model is the core of Chaldal’s progress. However, Chaldal offers better customer value by providing lower prices, first-class service, and an unbeatable selection of SKUs. It operates on SGD goals 2 (Zero Hunger), 8 (Decent Work and Economic Growth), 9 (Industry, Innovation, and Infrastructure) and 11(Sustainable Cities and Communities).
Lesson Learned Through Deligram
“The barrier of entry is very low, but the barrier to survive in the e-commerce industry is very high.” Waiz Rahim, Founder & CEO, Deligram shared his experience as a founder of a startup with the quote.
He further stated that amongst 160 million people in Bangladesh, about 20 million people are middle-income consumers. After paying for their basic necessities, their disposable income is very low. Additionally, about 50m people use smartphones. And 20-30 million people have active mobile internet access. Therefore, even if the platforms focus on these middle-income smartphone internet user target demographics, they will still have a bottleneck due to the lack of disposable income.
What kills e-commerce is the lack of repeating transactions and customer loyalty. On that note, It is very difficult to gain a qualitative data analysis on customer loyalty. Another aspect is fundraising which remains a bottleneck as the industry’s burn rate is drastically higher than its growth rate.
New Rules of Engagement
Imtiaz Halim, Founder and CEO, Sheba Platform Limited, conducted an insight session on New Rules of Engagement.
Engagement in the market, has have several shifts and changes over the years. Imtiaz Halim in the case study poined out the aspect platforms should focus for engagement.
To start a business, having an understanding on market and environment is essential. Every consumer wants a different experience when shopping, and this ‘experience’ has become the differentiating factor for many successful business models. In Bangladesh, however, Platform focuses mostly on Dhaka based target groups. Barely 1% focuses on other niche cities. Sheba.Platform’s vision was to become the amazon of Bangladesh’s service industry; tapping into the entire country as a whole. Sheba Platform consists of Sheba.xyz, sManager and sBusiness.xyz. Sheba’s ustomer engagement process consists of a pyramid of primary activities such as customer service, customer loyalty programs, streamline purchase cycles & process, social media interactivity, and customer life cycle activities.
However, one of Sheba’s groundbreaking engagement initiative was SaaS (software as a service). Even few years ago majority of people didn’t want to spend money to use a software service. Now Sheba.Platform altogether makes over 1 Lakh BDT net revenue on subscription daily; proving there is a lucrative market in Bangladesh for SaaS based companies.
Besides, a digital ecosystem is turing to be the most vital way of engagement in the new normal. Therefore, we have to move to a fully digital payment solution in the future.
Fireside Chat
How to Grow Customers & Build Trust
Moderated by Shourav Islam, Founder & CEO, Farmersmarket.Asia, the chat included Imamul Islam Suprio, Chief Commerical Officer, GoZayaan Nurul Afser, Head of Corporate Brand, PRAN-RFL Group, as distinguished speakers.
To create a good customer-based bond, a sustainable heart-to-heart bond should be created.
A sustainable heart-to-heart bond is the core to grow customers & build trust. Additionally, Investment should be another main priority for acquiring customers. Simply, There is little to no difference between online and offline products. But the main challenges of e-commerce are related to logistics, storage, investment and customer service; all connecting to customer growth bottlenecking.
