Bangladesh Brand Forum hosted the second edition of Daraz presents Bangladesh E-Commerce Summit 2023 powered by E-commerce Association of Bangladesh (e-Cab), in collaboration with Aspire to Innovate (a2i), in association with Mastercard, The Daily Star, and Women & e-Commerce (WE) at Radisson Blu Dhaka Water Garden on May 28, 2023.
Themed “Reinventing E-Commerce for the Modern Era,” the summit aimed to unleash the hidden potential of the e-commerce industry in Bangladesh. It provided a platform for important players in the sector to address crucial concerns and collaborate on developing a sustainable e-commerce ecosystem. The event had various insightful topics that encapsulated the idea of e-commerce and its growing influence in Bangladesh. Discussions revolved around timely issues like emerging e-commerce trends in the sub-continent, open digital commerce, domestic and cross-border logistic solutions for e-commerce, and building a successful d2c e-commerce strategy. In the insight sessions, expert speakers gave us insights on topics like Revolutionising e-commerce using chatgpt and F-commerce in Bangladesh. Additionally, case studies on optimising E-commerce business through Google and creating magical shopping experiences by empowering customers were successfully conducted.
he event was opened by Shomi Kaiser, President, E-commerce Association of Bangladesh (e-CAB). She acknowledged the platform and discussed Bangladesh’s rapidly emerging E-commerce scene.
OPENING SPEECH
Addressing the occasion, Shariful Islam, Founder and Managing Director of Bangladesh Brand Forum, said, “e-commerce is a rapidly growing sector. The sector frequently develops with new innovations and practices. It’s our responsibility to implement these developments effectively in our e-commerce sector. This platform will touch all the integral aspects of modern e-commerce and help the industry grow.”
The summit featured an engaging agenda comprising 04 Keynote Sessions, 03 Panel Discussions, 02 Insight Sessions, 02 Case Studies and 01 Policy Dialogue.
KEYNOTE SESSION BY BISWAPRIYA BHATTACHARJEE
The first keynote session of the summit, titled “Emerging E-commerce Trend in the Subcontinent,” was facilitated by Biswapriya Bhattacharjee, Director, B2B & Technology Insights Division, Kantar. The discussion kicked off by addressing both local and worldwide e-commerce growth. E-commerce sales have grown at a compound annual growth rate (CAGR) of 18% globally but have increased at an astonishing 38% locally in Bangladesh.
Contrary to popular opinion, e-commerce creates more chances for different firms and increases disparities. In addition, e-commerce offers a broader range of products and services than lower-priced items. Customers want a well-rounded buying experience; they are concerned with more than just pricing and promotion. Lastly, through online sales and customer engagement, firms may create a solid presence and solidify their identity.
The session offered exciting data on the state of e-commerce. Over 52% of India’s traditional retailers have integrated e-commerce into their business practices in the past year. Electronics and mobile devices make up about one-third of the income in e-commerce among high-value goods. With smartphones accounting for 90% of all mobile device purchases online, many first-time smartphone users are drawn to these devices. Regarding volume, fashion is the most popular product category in e-commerce.
Customer experience is crucial in online shopping, as 67% of customers consider it an essential element in purchasing. Direct-to-Consumer (DTC) businesses know the value of being active on all the platforms where their target market is present. These businesses emphasise providing consumers with significance and a sense of discovery. Personalisation is another essential component of DTC tactics, which helps create lasting client relationships.
To achieve e-commerce success, two essential things must be prioritised: improving operational efficiency and exploiting the power of emerging technology. The four Vs of technology — voice, video, vernacular, and virtual reality – are critical in improving the e-commerce experience.
Even in the online age, developing a brand presence is critical. According to research, there is an essential link between brand investment and brand continuity decline. To resonate with customers and ensure long-term success, businesses should aim to build relevant salience, meaningfully sell their products, and differentiate their brands.
KEYNOTE SESSION BY DATO’ ERIC KU YEE FEI
A keynote session on “Startup Opportunities in E-commerce and Skills Needed” was led by Dato’ Eric Ku Yee Fei, Deputy Chairman of the Digital Economy Committee, ACCCIM, Executive Director, iTrain (M) Sdn. Bhd. He started the session by stating how technological improvements have ushered in the Fourth Industrial Revolution, transforming industries and reshaping company operations. Adapting to this change is critical for long-term growth and success in e-commerce, where digitalisation plays a vital role.
A varied set of talents is required to realise the potential of the Fourth Industrial Revolution. AI, data science, IoT, cybersecurity, mobile apps, digital marketing, finance, web3, and blockchain expertise are essential. Individuals and businesses can use these abilities to navigate technology and capitalise on emerging opportunities.
The startup scene is thriving, and developing an entrepreneurial mindset is critical. The encouragement of individuals to turn their skills and knowledge into creative enterprises promotes economic growth and the development of a robust entrepreneurial ecosystem.
Gamification and data analytics have become increasingly crucial in redefining shopping experience. Businesses may connect with customers more deeply while obtaining helpful information to better understand consumer behaviour and preferences by introducing gamified components into the purchasing process. This gamification-data convergence adds a new dimension to the retail world.
Building a successful e-commerce enterprise is dependent on several frameworks. People, public policy, marketing, support services, and business frameworks are critical pillars in the e-commerce space’s construction. These frameworks provide the structure and support required for e-commerce enterprises to thrive in a competitive market.
E-commerce requires growing behaviour, mentality, relationship-building skills, and technological expertise. Individuals and organisations must have a broad skill set that includes hard and soft talents to navigate the e-commerce world properly. This holistic approach requires the development of emotional intelligence, communication skills, and adaptability.
PANEL DISCUSSION ON “‘THE E-COMMERCE WAY’ PLETHORA OF OPPORTUNITIES WAITING TO BE DISCOVERED”
Waiz Rahim, Former Chief Executive Officer, Deligram, moderated this panel discussion. The renowned guests who joined the panel were Adnan Imtiaz Halim, Founder & CEO, Sheba Platform Limited; Khondoker Tasfin Alam, Chief Operating Officer, Daraz Online Shopping; Rezwanul Haque Jami, Head of E-commerce, a2i – Aspire to Innovate; and Waseem Alim, Co-Founder & CEO, Chaldal. The insightful discussion started by pointing out how to take e-commerce to the next level.
Recognising the importance of digital transformation, Bangladesh is investing $2 per capita to construct an e-commerce-friendly infrastructure. Internet connection, a robust infrastructure, and a digital market are the three crucial ingredients for digital transformation. Offering more readily available products in traditional markets is crucial for attracting customers to e-commerce. Convenience, immediate benefits, and access to services/products are critical for e-commerce growth. Given Bangladesh’s unique e-commerce ecosystem compared to other ASEAN countries, the estimated breakpoint for e-commerce in Bangladesh is between 2025 and 2027.
In the e-commerce business, Bangladesh has a demographic dividend edge. E-commerce enterprises that have not relied mainly on significant discount techniques have demonstrated more resiliency. On the other hand, building trust remains a substantial hurdle to recruiting clients to e-commerce platforms.
Public digital infrastructure is critical in developing a sustainable e-commerce ecosystem, underlining the importance of using data for the greater good rather than profit. Improving the supply chain is a vital priority area for ensuring product availability. Within the ecosystem, fierce rivalry is also essential for stimulating growth.
People increasingly use e-commerce for daily commodity purchases as their entertainment options expand. Spending by the Bangladesh government on payment and logistical subsidies will aid in the growth of the e-commerce ecosystem. A key goal is to make e-commerce a regular activity in the country. To defend e-commerce rights and verify product authenticity, the Bangladeshi government is developing a trust infrastructure and centralised tracking system.
INSIGHT SESSION BY RASHEDUN NABI
Rashedun Nabi, Products and Projects Manager, ConnectedLife Health, Thailand; Advisor, iResearch and Big Mango; conducted an insight session on “Revolutionizing E-commerce in Southeast Asia with ChatGPT”. He started the session by stating that Southeast Asia’s e-commerce business has grown significantly, reaching $127.7 billion in 2021 and is expected to reach $200 billion by 2023. E-commerce platforms currently account for 51% of the retail market, while other e-commerce channels, such as social commerce, account for 22%.
Businesses in the e-commerce world face three significant challenges: high competition, different consumer preferences, and developing consumer behaviour. Companies are turning to AI technologies like ChatGPT and Haptik to overcome these difficulties and differentiate themselves from the competition.
It is essential to remember that language is significant in Southeast Asia, with 75% of internet buyers preferring to converse in their native language. AI technology, such as multilingual tools, can help firms efficiently cater to their broad consumer base by bridging the language barrier. For example, companies like Grab and Lineman are looking into using ChatGPT to provide automated responses while their delivery employees are on the road, improving customer service and lowering the chance of accidents.
Personalisation is a critical component of effective e-commerce initiatives. According to research, 91% of consumers are likelier to engage with businesses that provide relevant offers and recommendations. AI-powered systems can examine massive volumes of client data, discovering patterns and trends to create tailored marketing tactics that resonate with specific customers.
When building an e-commerce firm, there are seven critical things to consider. First, organisations must investigate the market, learning about its dynamics and prospective prospects. Companies can effectively identify niche markets and target specific consumer groups by spotting trends and segmenting opportunities. Evaluating the competition aids in developing strategies that distinguish the company, resulting in a unique selling proposition (USP).
PANEL DISCUSSION ON “DOMESTIC AND CROSS-BORDER LOGISTIC SOLUTIONS FOR E-COMMERCE”
Ashraf Bin Taj, Managing Director, International Distributions Company Bangladesh (Pvt) Limited; General Secretary, Asia Marketing Federation; was the moderator for this panel discussion. The distinguished panellists were Shahriar Hassan, Founder and CEO, Paperfly; Biplob G Rahul, Founder & CEO, eCourier.com.bd; Shakib Arafat, Managing Director & Co-Founder, Salextra Limited; and Ibrahim Shapan, Head of Othoba E-commerce, Othoba.com.
The discussion started by stating that establishing consumer trust is one of the most challenging issues in the e-commerce industry. Efforts should be directed towards exceeding a reliable benchmark of 70%. Building trust demands highlighting convenience above discounts as the value proposition of e-commerce.
The intricacies of cross-border trading necessitate a detailed understanding of international customs procedures. Accurate documentation of the value of exported goods is essential for compliance and smooth cross-border operations.
Money repatriation from cross-border transactions continues to be a severe concern in Bangladesh. Addressing this issue is critical to sustaining the e-commerce industry’s growth and facilitating international trade.
Creating a solid technological infrastructure is critical for ensuring seamless product delivery to clients. E-commerce enterprises prioritise speedier processing, automated cash collection, and intelligent mapping to improve logistical efficiency. Many Bangladeshi e-commerce enterprises need help with data interpretation. By recognising patterns and trends, improving data analysis capabilities can deliver valuable insights and promote business success.
Bangladesh will become one of the world’s fastest-growing consumer markets by 2030. To realise this potential, trust must be built, cross-border opportunities expanded, and product delivery experiences improved. Proper logistics routes must be established to fight the emergence of improper media, where products are bought at lower prices. Price adjustments can encourage customers to use the appropriate channels, ensuring fair commerce.
CASE STUDY ON “OPTIMISING YOUR E-COMMERCE BUSINESS THROUGH GOOGLE”
Modasser Ahmed Amit, SMB Marketing Lead, Mediam Bangladesh; Former Google Country Marketing Consultant – Bangladesh; presented the case study. He started his presentation by informing the audience that consumers in the realm of e-commerce go through a long journey that includes 20 to 500+ touchpoints on their way to purchase. Understanding and improving this journey is critical for a company’s success.
Google gathers signals from every consumer trip, giving businesses essential insights into consumer intent and preferences. Consumers communicate their purchase intent by accessing Google’s extensive ecosystem of apps and services, which allows Google to construct rich customer personas.
Recognising the importance of catering to consumers at each sales funnel point, Google provides targeted solutions to attract the audience’s attention and increase engagement. One such approach is Google’s Performance Max, a campaign format that outperforms older structures. This new campaign model has proven effective in producing efficient reports and meeting targeted marketing goals.
A notable case study is the partnership between Google and Bata, a renowned footwear brand. Bata actively engaged in various Google campaigns, including display, video action, and in-stream advertisements. By leveraging Google’s Performance Max campaign format, Bata significantly improved their marketing performance.
The relationship with Google enabled Bata to supply first-party data, allowing Google to showcase their business strategy to a bigger audience. Compared to other platforms, Bata had a 2x incremental conversion rate, a startling 34x better Return on Ad Spend (ROAS), and a 46% lower Cost per Acquisition (CPA). Furthermore, independent campaigns witnessed a 68x reduction in CPA.
The AI capabilities of Google were critical in improving Bata’s creative performance. Google’s AI algorithms aided in multiplying the impact of Bata’s innovative materials, resulting in higher customer engagement and conversion rates.
KEYNOTE SESSION BY ZAKARIA BAIG
Zakaria Baig, Former Global Marketing Director, Reckitt; took a keynote session on “How to Grow in E-commerce (Amazon)”. He started the session by addressing that Amazon, one of the largest e-commerce platforms, boasts an impressive customer base of 300 million active users. The platform has experienced significant growth, with 60% of its sales coming from third-party (3P) sellers, representing a 55% increase. Currently, Amazon hosts a staggering 225,000 sellers on its platform.
To understand the equation for Amazon’s sales, we need to consider the factors of visitors, conversion rate, and basket value. The formula determines the potential sales on Amazon: likely sales = unique visitors x conversion rate x basket value x repeat rate.
Various tactics can be used to drive the equation for unique visitors. These include improving search engine optimisation (SEO), developing optimised product description pages (PDP), using eye-catching images, and maximising advertising efforts. It is important to remember that the first page of Amazon’s search results accounts for the vast majority of purchases (90%), with the first three products accounting for 60-70% of total sales.
The conversion rate is critical in driving Amazon’s calculation. Sellers should prioritise high-quality product photos, compelling A+ content, engaging videos, favourable reviews and ratings, and free shipping to increase conversion rates. According to studies, 92.6% of individuals base their purchasing decisions on visual components, and customers typically take 90 seconds to evaluate a product before making a purchase.
Basket value can be increased by cross-promoting comparable products, giving larger pack sizes at a lower cost, and introducing bundle promotions (physical and virtual bundles). Amazon drives 48.3% more purchases than competitors such as Walmart and Target.
The repeat rate is critical to Amazon’s business. Retargeting efforts, adding subscription alternatives (like Amazon’s Subscribe and Save programme, which accounts for around 20% of their sales), and delivering a seamless customer experience can all be used to encourage repeat purchases.
Sellers should consider aspects such as engaging in significant events (e.g., Black Friday, Prime Day), guaranteeing mobile-friendliness, controlling brand image on Amazon, and researching both first-party (1P) and third-party (3P) selling strategies to optimise the Amazon equation as a whole. Amazon’s Fulfilled by Amazon (FBA) service can also help boost sales.
PANEL DISCUSSION ON “BUILDING A SUCCESSFUL D2C E-COMMERCE STRATEGY: WHAT ARE THE KEY CONSIDERATIONS FOR BUSINESSES”
Sami Ashraf, Customer Marketing Director, Unilever Bangladesh Ltd, was the moderator for the discussion. The distinguished panellists were Razib Jahan Ferdous, General Manager & Head of Digital Business, Bata Bangladesh; Sifat E Jamali, Manager – Strategic Support and E-Commerce, Nestlé Bangladesh Ltd; Tanvir Hossain, General Manager, E-commerce, Marketing & Sustainability, BRAC- Aarong; and Tanzeen Ferdous Alam, Chief Marketing Officer, Berger Paints Bangladesh Limited.
The discussion panel started by stating that, for firms like Aarong, having an internet presence is no longer a luxury but a requirement. However, before moving into the online arena, it is critical to establish confidence offline.
Bata promotes clients to all platforms, including its own and third-party web platforms. They devote enormous resources to increasing traffic to their physical stores and online. The advent of different influencers has disrupted multiple levels in the retail industry, yet direct-to-consumer (D2C) techniques have proven beneficial in engaging customers directly.
However, D2C may need to be more effective in the supermarket industry than in other sectors. To properly apply D2C models, grocery stores require customer preference data. As a result, building a consumer base and understanding their preferences is critical for D2C investment in the grocery items business. To succeed in online purchasing, businesses must deliver all of the benefits offline shopping provides. A company’s internet presence in today’s economy has become a critical leadership ability.
One of the most significant benefits of establishing an online presence is obtaining access to first-party data. This information can be used to tailor services and improve customer experiences. It is vital to note that D2C policies and offers may change among industries. Rather than focusing exclusively on discounts, the future of D2C is dependent on delivering additional or value-added services. A successful online presence includes not only D2C channels but also a presence on other platforms like Facebook.
INSIGHT SESSION BY NASIMA AKTAR NISHA
Nasima Aktar Nisha, President, Women and e-Commerce Trust – WE; conducted an insight session on “F-Commerce in Bangladesh: Problems and Prospects”. She started the session by addressing that Bangladesh’s internet users have increased dramatically, with roughly 44.7 million active users engaging in various online activities. F-commerce has become a significant trend within the greater e-commerce market, allowing firms to operate through Facebook pages. These insights examined the market size, female entrepreneur participation, industry obstacles, and future growth possibilities.
F-commerce has grown significantly in Bangladesh, with the market valued at over 1000 crore taka. This reflects the growing consumer base and increased online transactions made via social media platforms, particularly Facebook.
The active participation of female entrepreneurs in e-commerce is one notable facet of the industry. Women run around 70.4% of e-commerce pages. However, it was noted that many female entrepreneurs lack legal understanding, requiring assistance in legalisation, identification verification, and loan availability. Closing these disparities can help to empower more female entrepreneurs and increase their contributions to the e-commerce sector.
Communities are essential in enabling collaboration and success in the e-commerce market. Notably, the largest community, ‘WE,’ has an astonishing 1.3 million Facebook users as members. Such networks offer platforms for f-commerce businesses to network, share knowledge, and facilitate collaborative opportunities.
The creation of trust and credibility is a significant barrier for e-commerce enterprises. Concerns about product quality, delivery reliability, and payment security have hampered the industry’s potential for expansion. Overcoming these obstacles and instilling client trust is vital to the long-term viability of e-commerce.
Digital literacy is critical to the success of e-commerce entrepreneurs. Their growth and competitiveness in the business must equip themselves with the appropriate skills and expertise to traverse the online marketplace, exploit social media platforms, and adapt to emerging digital trends.
In terms of job creation and economic growth, e-commerce has enormous potential. According to projections, f-commerce might contribute to 40% of e-commerce in Bangladesh, creating around 70,000 jobs. This demonstrates the tremendous impact that e-commerce can make to job creation and general economic development.
Obtaining trade licences is a significant challenge for many e-commerce firms due to needing a physical office or warehouse. This makes it challenging to comply with legal standards and highlights the need for efficient processes and support mechanisms for e-commerce enterprises.
CASE STUDY ON “CREATING A MAGICAL SHOPPING EXPERIENCE BY EMPOWERING CUSTOMERS”
Alec M, Founder & CEO, Bazar365; and Muntasir Rashid Bhuiyan, Founder & Chairman, Bazar365; presented the case study. The duo started their presentation by stating that they recognised the environmental issue of plastic garbage in Dhaka, where 646 tonnes of plastic are produced daily. They hoped to solve this issue by providing a one-of-a-kind opportunity for everyone to contribute to the solution. Bazar365 established a reward system, incentivising customers to recycle their used plastic by providing purchase discounts.
The preliminary data revealed that Bangladesh wasted 2 lakh mini packs in one year, producing 646 tonnes of plastic garbage in Dhaka. Furthermore, 353.3 metric tonnes of plastic were predicted to be consumed each year globally, with Bangladesh accounting for 2 lac tonnes of unrecyclable plastics.
Bazar365 wanted to give a convenient and effortless alternative to address time management constraints and the added effort associated with recycling. They want to raise customer awareness and encourage them to join recycling activities.
According to research, people are genuinely concerned about the plastic problem. By matching their ambitions with the beliefs of their customers, Bazar365 urged individuals to contribute to a more sustainable future. The organisation educates and engages its customers, underlining the need to recycle plastic.
Bazar365’s efforts brought positive results. They were successful in collecting and recycling a large volume of plastic garbage. 17.4% of the 1.88 tonnes of plastic consumed was recovered, with 63% successfully recycled. Bazar365 also made strides towards reducing plastic usage by implementing more environmentally friendly packaging, saving 2 tonnes of plastic materials.
POLICY DIALOGUE ON “THE EVOLVING E-COMMERCE ECOSYSTEM: TRENDS AND CHALLENGES”
Shariful Islam, Founder & Managing Director, Bangladesh Brand Forum; moderated this policy dialogue. The distinguished panellists present were Dr. Dewan M Humayun Kabir, Project Director (Additional Secretary), a2i – Aspire to Innovate; Shomi Kaiser, President, E-Commerce Association of Bangladesh (e-CAB); Russell T. Ahmed, President, Bangladesh Association of Software and Information Services (BASIS); Rafeza Akhter Kanta, Additional Director, Bangladesh Bank; and A H M Hasinul Quddus Rusho, Chief Corporate Affairs Officer, Daraz Bangladesh.
In e-commerce, five key characteristics apply – authenticity, accountability, accessibility, security, and privacy. These principles ensure that online transactions for businesses and customers are trustworthy, transparent, and secure. Pre-transaction, in-transaction, and post-transaction are the three stages of an e-commerce transaction. Each phase has its own set of tasks and factors to consider.
However, an e-commerce quandary arises, marked by the disparity between e-commerce platforms and users. Addressing this imbalance and creating a fair and inclusive environment for all participants in the e-commerce ecosystem is critical.
Standardisation is critical in e-commerce for assuring trust and reliability, notably in transaction assurance. This includes safeguarding online consumer rights, preventing disputes, and developing efficient dispute-resolution mechanisms. B2C e-commerce transactions involve exchanges between businesses and their customers. This can occur across open networks, allowing enterprises to supply products and services to clients conveniently.
The COVID-19 epidemic has highlighted the e-commerce sector’s potential for expansion. We have seen an increase in online marketplaces and the rise of new logistics providers. However, educating entrepreneurs and customers about the benefits and pitfalls of e-commerce is critical. Building a conscientious customer base and encouraging entrepreneurship will help the sector succeed.
A robust tech ecosystem is essential to realise the potential of e-commerce fully. This includes sturdy payment systems, favourable tax regulations, and an atmosphere encouraging innovation and growth. A SMART (Specific, Measurable, Achievable, Relevant, Time-bound) policy framework will be required for a digitally connected and borderless future. PSP (Payment Service Provider) licences have been issued to boost e-commerce. This allows for safe and efficient internet payments.
Another critical part of e-commerce transformation is customer literacy. Customers’ confidence and adoption will increase if they are educated about online buying, digital transactions, and security precautions. A well-defined e-commerce policy is critical for the sector’s long-term success. It should meet the unique issues and needs of e-commerce enterprises while providing a level playing field and a supportive ecosystem.
