Daraz, founded in Pakistan in 2012, operates online marketplaces in Pakistan, Bangladesh, Myanmar, Sri Lanka and Nepal. The unit will continue to operate under the same brand following the sale to Alibaba, Rocket said.
Online sales in Pakistan's $152 billion retail market are doubling every year, according to Adam Dawood of Yayvo online portal. He expects them to pass $1 billion in the current fiscal year (2017-18), two years earlier than the previous forecast.
Amazon's Presence in Pakistan:
Amazon already owns about 33% stake in Clicky.pk through its acquisition in 2017 of Dubai-based online retailer Souq. Souq acquired this stake in the Pakistani company in late 2016.
E-Commerce Market Growth:
Online sales in Pakistan's $152 billion retail market are growing much faster than the brick-and-mortar retail sales. Adam Dawood of Yayvo online portal estimates that e-tail sales are doubling every year. He expects them to pass $1 billion in the current fiscal year (2017-18), two years earlier than the previous forecast.
E-commerce in Pakistan is being enabled by increasing broadband penetration and new online payment options. Ant Financial, an Alibaba subsidiary, has just announced the purchase of 45% stake in Pakistan-based Telenor Microfinance Bank.
Payment Options:
Mobile wallets, also called m-wallets, are smartphone applications linked to bank accounts that allow users to make payments for transactions such as retail purchases. According to recent State Bank statistics on branchless banking (BB) sector, mobile wallets reached a high of 33 million as of September 2017, up 21% over the prior quarter. About 22 percent of these accounts – 7.4 million – are owned by women, up 29% seen in Jul-Sep 2017 over previous quarter. Share of active m-wallets has also seen significant growth from a low of 35% in June 2015 to 45% in September 2017.
Summary:
Online sales in Pakistan's $152 billion retail market are doubling every year, according to Adam Dawood of Yayvo online portal. The country's retail market is the fastest growing in the world, according to Euromonitor. Expanding middle class, particularly millennials with rising disposable incomes, is demanding branded and packaged consumer goods ranging from personal and baby care items to food and beverage products. Strong demand for fast moving consumer goods is drawing large new investments of hundreds of millions of dollars. Rapid growth in sales of consumer products and services is driving other sectors, including retail, e-commerce, paper and packaging, advertising, media, sports and entertainment. Potential downsides of soaring consumption include increased amount of solid waste and decline in domestic savings and investment rates.
Related Links:
Haq's Musings
Pakistan Retail Sales Growth
Advertising Revenue in Pakistan
Pakistan FMCG Market
The Other 99% of Pakistan Story
PSL Cricket League Revenue
E-Commerce in Pakistan
Fintech Revolution in Pakistan
Mobile Broadband Speed in Pakistan
31 comments:
I used Daraz to buy tickets to the Pakistan vs Zimbabwe match in Lahore a few years ago. I was very pleasantly surprised at how easy it was to order the tickets and they were delivered by a guy on a motorcycle and I paid him when he delivered the tickets. Since this was my first experience I was not comfortable giving them my credit card number so I opted for the payment on delivery option.
$152 Billion retail market? Where did they come up with that number?
Retail market estimate is from Planet Retail Research.
$152 billion retail market in a $320 billion economy is not surprising
Retail sales in India are close to a trillion US$ now, nearly half of India’s gdp
Alibaba Group Holding Ltd. BABA, -0.28% announced that it has acquired Pakistan-based Daraz Group, a leading e-commerce company in Southeast Asia. The acquisition comes after a recent investment in Lazada, another Southeast Asian e-commerce company. Daraz has 30,000 sellers and 500 brands on its platform, according to the release. "With a combined netizen population of approximately 90 million (Pakistan, Bangladesh, Myanmar, Sri Lanka and Nepal), Daraz's current market represents a sizable growth opportunity for Alibaba," said Declan Kearney, Clavis Insight's APAC general manager. "Although the market is many years behind China (in terms of shopper sophistication & retailer e-capabilities), Alibaba's investment is certain to accelerate online retail growth over coming years." Walmart Inc. WMT, -3.32% announced Wednesday that it has taken a 77% stake in India's Flipkart e-commerce platform for $16 billion, demonstrating the growing retail competition in the region. Alibaba shares are up 13.5% for the year so far while the S&P 500 index SPX, +0.86% is up 0.5% for the period.
https://www.marketwatch.com/story/alibaba-acquires-pakistan-based-e-commerce-site-daraz-group-2018-05-09
Alibaba has expanded its e-commerce empire into South Asia after the Chinese internet giant acquired Daraz in an undisclosed deal.
Daraz was founded in 2012 by Rocket Internet and today it operates in Pakistan as well as Bangladesh, Myanmar, Sri Lanka and Nepal. Rocket said in a statement that Alibaba has acquired the entire Daraz business. The deal is the second time Alibaba has bought a Rocket company, the first being Lazada in Southeast Asia two years ago.
An Alibaba spokesperson confirmed the deal but the company hasn’t made an official announcement.
Rumors of a deal have been rife for the past couple of months, with Bloomberg reporting in March that acquisition talks were ongoing.
The deal is part of Alibaba’s second wave of international expansions which see it enter South Asia.
The company initially focused on India — where it has backed Paytm — and Southeast Asia with Lazada, but this year it has spread its wings into lower profile but hugely populous countries in South Asia. Pakistan, for example, has a population of over 190 million. The acquisition of Daraz follows a fintech investment from Alibaba affiliate Ant Financial, which runs Alipay and other Alibaba financial services.
Back in March, Ant paid $184.5 million for a 45 percent stake in Telenor Microfinance Bank, a fintech division from Norwegian operator Telenor, which operates Pakistan’s second largest telco. That one-two punch of e-commerce and fintech (particularly payments) is a common move from Alibaba-Ant, which has made similar deals in India and across Southeast Asia.
Beyond Pakistan, it looks like Alibaba is also eying nearby Bangladesh, which has a population of over 160 million and rising internet adoption.
According to reports last month, the Chinese firm is pushing to buy a 20 percent chunk of payment firm bKash, a move that would again push its reach deeper into South Asia.
https://techcrunch.com/2018/05/08/alibaba-buys-rocket-internets-daraz/
Why is this biggest news not covered in American Media the way they are covering Walmart buying Flipkart of India ? SIck of media bias.
-Ali
Because there is a conspiracy against Pakistan
NBRX: "Because there is a conspiracy against Pakistan"
Western media coverage of Pakistan is mostly sensational and negative.
Western and Indian media have the history of covering the worst 1% of the Pakistan story 99% of the time.
But in this instance, the Alibaba move was covered by Reuters and Bloomberg.
Between the 18th and 19th centuries, the industrial revolution re-configured global economic and political power. As machines in Manchester began to spin the bulk of global textile production, within decades, India went from the world’s top textile exporter to a net importer. Between 1750 and 1900, India’s share of global industrial production slumped from 25% to 2%. It was not just because of western command over science and technology. It owed as much to political power and exploitative economic and trade policies. The impact of that shift – let us call it the historic ‘Manchester moment’ – still significantly determines where India stands vis-a-vis the developed world. India continues to regret missing out on the industrial revolution in time.
It is ironical then that we may right now similarly be losing out on another revolution. This contemporary ‘Manchester moment’ is about digital technologies and digital economy. As industrial revolution automated mechanical power, digital revolution is about automation of intelligence. Both represent fundamental shifts in human affairs. The digital revolution will as thoroughly transform our economic, social and political organisation as did industrial revolution.
This tragedy is unfolding right in front of our eyes, in a nation supposed to be in good political and economic control of itself. It also has sufficient basic competencies in digital technologies and conducting modern business. As it was in 18th-19th centuries, India’s failure is primarily political.
Missing the digital revolution
A decade or so ago, China trailed India in terms of IT or software technologies. How has China then suddenly become a digital super-power, posing a challenge even to the US? Digital technologies build over and subsume traditional IT and software, but are centrally about next-generation data-based systems.
It is simple. Just examine where in China (or US) all the cutting edge development of digital technologies – like artificial intelligence (AI), Interent-of-Things and blockchain – takes place. It is within super-large domestically-owned digital ecosystems like Baidu, Alibaba, Tencent and Didi. (In the US, these are Google, Amazon, Facebook, Apple etc). Unlike industrial technologies, digital ones are socially-iterative technologies that develop in real-world social and business settings, and not so much in laboratories. Innovating start-ups too get routinely bought and integrated into these ecosystems.
Over the last decade, China created ideal conditions for development of such large domestically-owned digital ecosystems, which catapulted China to global digital leadership. Both Chinese and US governments devote considerable public funds to partner with their private digital ecosystems for digital R&D.
And India? It first allowed Amazon to dump billions of dollars to close in on the domestic e-commerce market leader Flipkart. Not only were many other Indian e-commerce platforms suffocated in the process, domestic leaders like Flipkart had to off-load considerable equity abroad to obtain capital for matching Amazon’s cash burn. And now, most unthinkably, India is ready to sell its top e-commerce platform Flipkart to Walmart. Very soon, India’s two largest digital ecosystems will be foreign-controlled.
It is difficult to understand why India is inviting foreign corporations to own its digital ecosystems that are epicentres both of digital economy and development and control of digital technologies. It is difficult to think of a quicker path to total digital dependency.
Despite what most people think, digital platforms aren’t just ‘more efficient’ marketplaces. They are monopolistic intelligent agents that reorganise and control whole sectors, as they form backward and forward linkages – from manufacturing, inventory management and logistics, to payment and delivery.
https://thewire.in/economy/does-flipkarts-sale-represent-a-manchester-moment-for-indias-digital-economy
#Alibaba's entry in #Pakistan hailed as boost for #DigitalEconomy. Experts predict #Islamabad likely to lower high taxes after #Chinese e-retailer's investment. #ecommerce #fintech #Daraz #AliPay #Telenor #Telecom #payments
https://asia.nikkei.com/Business/Companies/Alibaba-s-entry-in-Pakistan-hailed-as-boost-for-digital-economy
KARACHI -- Alibaba Group Holding's recent purchase of a Pakistan-based online retailer has positioned the Chinese technology conglomerate to make inroads in e-commerce across South Asia, but the acquisition has raised expectations of robust growth in an industry that many experts say performs well below its potential.
Gaps such as the absence of a global online payments system can now be filled through Alibaba's Alipay service, said Shuja Rizvi, a Karachi based senior stock market analyst at Al-Hoqani Securities. "With the entry of a major player like Alibaba, Pakistan's policies will be molded to face global competition and our environment will hopefully improve," Rizvi said in an interview with the Nikkei Asian Review, citing one of the most commonly discussed benefits of Alibaba's arrival in the country.
Alibaba announced earlier this month a deal to buy Daraz Group, a Pakistani digital marketplace company, for an undisclosed amount. Since it was founded in 2012, Daraz has steadily expanded its services to Myanmar, Bangladesh, Sri Lanka and Nepal, say analysts who regularly track the e-commerce sector.
The acquisition comes as Pakistan prepares to receive more than $60 billion in Chinese investment under the China-Pakistan Economic Corridor -- a cornerstone of Chinese President Xi Jinping's Belt and Road Initiative. Alibaba's arrival in Pakistan also has been preceded by significant growth in cellular phone services and high-speed internet across the country in recent years, analysts say.
According to the Pakistan Telecommunication Authority, or PTA, the official regulator of the telecom sector, more than 73% of Pakistan's population, or roughly 149 million people, have cellular phone subscriptions. Especially important for the growth of digital businesses is the estimate of 56 million people, or more than 27% of the population, who subscribe to broadband services -- a key figure indicating the number of internet users, many of whom will be potential future online customers.
"Today, the number of internet users in Pakistan are more than the entire population of many countries around the world," a senior official with the Ministry of Information Technology and Telecommunication in Islamabad who requested anonymity because he was not allowed to speak to journalists, told Nikkei. "For investors like Alibaba, there is fertile ground for a strong future expansion."
Other PTA officials said that online retail businesses in Pakistan have much room to grow as they have an advantage over traditional retail outlets that have to invest heavily in commercial real estate to sell their products to consumers.
"In the most prized commercial markets of Pakistan -- in big cities like Karachi, Lahore or Islamabad -- rents have more than doubled for the top-end premises just in the last 10 years," said the Ministry of Information Technology official. "And the overhead costs -- especially rents -- continue to rise."
Barkan Saeed, chairman of the Pakistan Software Houses Association, the main representative body of the country's software industry, welcomed Alibaba's purchase of Daraz and entry into the country "as a major milestone" for Pakistan's e-commerce sector. Saeed said that while the government estimates the annual value of e-commerce transactions in Pakistan at approximately $600million, the actual figure could be five times that amount.
TECHNOLOGY
Internet Giants Amazon, Alibaba Heading For Consumer Battle In India
https://www.investors.com/news/technology/amazon-stock-alibaba-ecommerce/
Amazon.com (AMZN) and China internet giant Alibaba Group Holding (BABA) are heading for a grand battle in India as they pursue e-commerce growth outside their home markets, according to a report Tuesday from brokerage Morgan Stanley.
The U.S. e-commerce leader has a "larger long-term need for global expansion," said the Morgan Stanley note to clients, with India emerging as a new battleground.
"For now, we see Amazon ahead in India, Alibaba ahead in Southeast Asia, and both players planting seeds in Latin America and Australia," the note said
Walmart (WMT) recently beat out Amazon for Indian e-commerce heavyweight Flipkart. Walmart agreed to pay $16 billion for Flipkart, a firm founded by former Amazon employees.
Alibaba Paytm Stake
While Morgan Stanley says the U.S. e-commerce firm leads Alibaba in India, the Chinese internet giant has a strong presence. Alibaba supports Indian online shopping site Paytm Mall, a rival of Flipkart, with a 36% stake.
Alibaba also has a presence in India through investments in BigBasket, an online grocer, and logistics firm XpressBees, the note says.
In Latin America, both companies are focused on Brazil, it adds.
Amazon India Buildout
The U.S. e-commerce leader has built out 60 fulfillment and distribution centers in India. Amazon also is expanding local video content in India for its internet streaming service.
Morgan Stanley says Amazon and Alibaba will be battling over a $5 trillion market opportunity in India, Latin America, Southeast Asia and Australia.
Amazon edged up 0.3% to 1,615 on the stock market today. Its stock has gained 61% from a year ago and 35% in 2018.
Alibaba stock rose 0.8% to 200.93 on Tuesday. Shares are up 61% from a year ago and 8.5% in 2018.
#PTI's 14-Point for #Digital #Pakistan. #Elections2018 #ImranKhan https://www.techjuice.pk/pti-unveils-digital-policy-naya-pakistan/ PTI’s 14 Points for Digital Pakistan:
$2 billion set aside for National digital transformations & provision of different services to citizens through mobile.
Using technology to open government data to increase transparency
IT education of 50,000 students
Establishment of 120 new campuses to produce 100,000 technology graduates/year
Mathematics and Science teacher training and certification program
Five new major technology clusters (Special Economic Zones)
A focus will be on creating enabling environment for start-ups and entrepreneurs.
50,000 call center seats available on a turn-key basis
One window operation to register a new company
A global PR campaign involving expat community
Visa issuance on green passport for Businessmen and professionals
Simplification of processes for foreign ownership of companies
Public-Private Partnership on projects
Target will be set to increase the global ranking of Pakistan in ease of doing business
Pakistan To Have 100 Mln Smartphones In Next Two Years
https://www.urdupoint.com/en/technology/pakistan-to-have-100-mln-smartphones-in-next-388458.html
As per report of GSMA, by year 2020, a whopping 90 per cent of Pakistani population will have access to 3G networks while an impressive 80 per cent population will have access to 4G. Obviously, mobile broadband growth means flourishment of smartphone.
The mobile broadband users growth in pakistan is expected to touch 8 per cent mark in coming years as the country would have more than 100 million smartphones by 2020.
The third-generation (3G) and 4G mobile phone users stand at around 56 million and continue to grow, creating a huge demand for smartphones, which is the top selling category across all major e-commerce platforms.
--------------------------------------
The Mobile Economy 2018
https://www.gsma.com/mobileeconomy/wp-content/uploads/2018/02/The-Mobile-Economy-Global-2018.pdf
Having surpassed 5 billion people connected
to mobile services in 2017, the global mobile
industry will reach further milestones
over the next eight years. The number of
unique mobile subscribers will reach 5.9
billion by 2025, equivalent to 71% of the
world’s population. Growth will be driven by
developing countries, particularly India, China,
Pakistan, Indonesia and Bangladesh, as well
as Sub-Saharan Africa and Latin America.
-----------
While more than 3 billion people use mobile internet
globally (internet-connected consumers), their
digital engagement – measured by the GSMA
Global Mobile Engagement Index (GMEI) – varies
significantly between countries. On a scale of 0–10,
South Korea (6.8), Scandinavian countries (e.g.
Finland at 6.7, Sweden at 5.8), Australia (5.5) and
the US (5.3) have relatively high mobile engagement
scores (2017); many subscribers in these countries
use their phones on a regular basis to access not
only internet-based messaging and social media
but also entertainment content (such as movies,
music, games and sports), e-commerce and other
digitally delivered services and content (i.e. financial
services, health, education, government services).
Pakistan, India and Tanzania have the lowest scores
(at around 1.0).
------------
Telenor’s Easypaisa digitises payments for Nestlé dairy farmers in Pakistan
Pakistan is the third largest milk-producing nation in the world, behind the US and India, with dairy and
livestock accounting for around 12% of GDP. The local unit of multinational food business Nestlé works
with around 150,000 dairy farmers across the country. Every year, the company pays approximately
PKR22 billion ($208 million) for nearly 0.5 billion tons of milk through an extensive chain of more
than 2,500 milk collection centres. Most farmers receive their payments in cash from the supply agent
routed via the traditional banking channel.
Telenor’s Easypaisa mobile money service collaborated with Nestlé Pakistan to make disbursement of
milk collection payments swift, easy and transparent. Easypaisa provided Telenor SIMs and registered
Easypaisa mobile accounts for around 15,000 farmers across Pakistan for the transfer of funds into
their accounts on a weekly basis. Easypaisa processed payments totalling more than PKR1 billion to
dairy farmers annually.
‘Alipay to start operations in #Pakistan by end of 2018’.
#Alipay seeking approval from State Bank of Pakistan to pave the way for international payment gateways to enter in Pakistan. #payments #Alibaba #ecommerce https://tribune.com.pk/story/1780902/2-alipay-start-operations-pakistan-end-2018/
Alipay, the China-based third party mobile and online payments platform, will start operations in Pakistan by the end of this year, according to Irfan Wahab Khan, the Telenor chief executive officer.
Khan is also a board member of the Telenor Microfinance Bank in which Ant Financial, the parent company of Alipay and the financial services affiliate of Alibaba, acquired a 45% stake at an investment of $184.5 million in March 2018.
Currently, Ant Financial is in the process of taking approval from relevant authorities such as the State Bank of Pakistan (SBP) and Competition Commission of Pakistan (CCP) to commence financial services in the country.
As Pakistan embraces digital technology after the spectrum auction that saw the arrival of 3G/4G services in the country, a payments solution was the need of the hour. While mobile phone infrastructure and service penetrate 72% of the population, according to the latest data available with the Pakistan Telecommunication Authority (PTA), future growth will rely on digital payments becoming more accessible.
Khan agreed that the opportunity exists.
“The opportunity exists in data, digital payments and e-commerce,” Khan told The Express Tribune.
Pakistan has 58 million broadband subscribers including 56 million 3G/4G subscribers. Its e-commerce market is estimated at $1 billion, and gaining momentum.
Recently, Alibaba, the Chinese e-commerce giant, acquired Daraz.pk from venture capital company Rocket Internet, and is tipped to be expanding its footprint in the country.
Its financial muscle and experience will help it against competition that includes the likes of PayPak of 1link, Fonepay, and Avanza Premier Payment Services (APPS) that have also entered the digital payments space with investments to the tune of millions of dollars.
Telenor – with its network and infrastructure – is also looking at the next growth segment as mobile broadband penetration slows down in the next five years.
Additionally, as users opt for over-the-top applications that bypass the traditional calls-receiving and calls-making processes, cellular mobile operators (CMOs) are now eyeing growth in the digital payments segment.
“We are putting a site an hour on 4G and will complete 80% of them by the end of this year,” said Khan, who took over as CEO Telenor Pakistan on August 1, 2016.
Mobile payment firms struggle to dethrone cash in Southeast Asia
Telenor is currently placed second as the CMO with the highest number of subscribers. It has 43 million subscribers after Jazz, which is the market leader with 55 million.
Telenor also has a 23% market share in the Next Generation Mobile Services (NGMS) market, which puts in third place after Jazz (34%) and Zong (29%).
On the other hand, Telenor also invested in an agriculture sector-related app, ‘Khushhal Zameendar’, which provides location-specific weather forecast and agronomic advisory to small-scale farmers.
“It’s about incentive. Customers are sensible to adopt new technology when it offers incentives to them,” Khan said.
Published in The Express Tribune, August 15th, 2018.
82% of urban Pakistanis made online purchase in 2018, up 6% from 2017
https://profit.pakistantoday.com.pk/2018/11/20/82-of-pakistani-urban-consumers-made-a-online-purchase-in-2018-nielsen/
A report released by Nielsen “2018 Connected Commerce” has revealed 82% of consumers having access to the internet in urban areas have made an online purchase, up by 6% from 2017.
According to Nielsen, the growth of e-commerce in the last few years because of the rise in internet and smartphone penetration, especially in the country’s urban areas has contributed to the online sale of particular categories.
Fashion accounted for the largest slice of online transactions of 40%, followed by travel 31% and IT 29% respectively.
The report outlines consumers’ online purchasing habits and it disclosed categories which posted significant growth in e-commerce activity included restaurant deliveries 24%, 22% in beauty and personal care products, books and music 28% respectively.
The report determined that consumers are more conducive to making online purchases when offered a couple of purchasing options and quality assurances.
Furthermore, the report highlighted approximately 55% of the consumers stated that a money back guarantee for products not matching what was ordered would encourage them to buy online.
Also, 49% of consumers shared that free delivery for purchases above a minimum spend would contribute positively impact their buying decision.
Managing Director Nielsen Pakistan, Quratulain Ibrahim said, “Travel, fashion and IT are typical categories for first-time online shoppers, but as their familiarization, comfort and trust levels increase, their category range expands.
They start looking into areas like beauty, personal care and baby products, and then move even wider afield to restaurant deliveries or meal-kit delivery service categories.”
“This is evident in the significant jump we have seen in online purchasing within food delivery in recent years, especially in urban areas and city centres,” she added.
Global online sales in 2017 totalled $2.3 trillion or 10.2% of total retail sales and is expected to reach 17.5% by 2021.
“Online retail development correlates strongly with constantly improving internet access, especially in mobile-first communities.
With connectivity and digital development exploding in Asia, it is no surprise that the fastest growing e-commerce markets are located there,” said Nielsen.
The global online sales of fast-moving consumer goods (FMCG) products are growing four times faster than offline sales, and Pakistan, despite facing infrastructural impediments, is expected to follow the same route but at a varied pace, according to “Nielsen Future Opportunities in FMCG E-commerce” report.
As per the aforementioned report, it surveyed the current growth drivers of FMCG e-commerce in 34 markets and projected that the global online sales will touch as high as $400 billion by 2022.
Nielsen said, “Pakistan being a developing country with the largest youth population (which is more tech-savvy compared to older generations) is also expected to adopt the emerging e-commerce trends.”
“Some of the regions in Pakistan, especially rural areas have been fairly isolated and may explain why 24% of consumers strongly agree that internet connectivity is a barrier to online shopping while 37% somewhat agree,” it added.
According to the State Bank of Pakistan’s “Annual Performance Review 2017-18” report released last month, the volume of transactions in FY18 processed via retail e-Banking channels i.e. real-time online banking (RTOB), ATMs, POS, mobile phone banking, internet banking etc touched 756.5 million valued at Rs47.4 trillion.
The number of local e-commerce merchants registered with banks reached 1,094 and consumers carried out 3.4 million online e-commerce transactions valued at Rs 18.7 billion.
#Pakistan prepares for #5G public #trial in 2019. Draft framework for 5G enables use of radio spectrum on trial basis for noncommercial purposes to carry out trials for innovative use of radio frequency spectrum, apparatus/equipment and academic purposes https://dailytimes.com.pk/337738/pakistan-prepares-for-5g-public-trials-in-2019/
The Pakistan Telecommunication Authority (PTA) has unveiled its plans for the Fifth Generation (5G) Wireless Networks public trials, demonstrate systems and/or services in Pakistan.
In this connection, the regulator Wednesday has issued draft framework for test and development of future technologies particularly for 5G wireless networks in Pakistan 2018.
According to the PTA, the rapid growth in mobile data traffic and consumer demand for enhanced mobile broadband experience have led to an increasing emphasis on the upcoming fifth generation of mobile technology (5G).
“Seen as a comprehensive wireless-access solution with the capacity to address the demands and requirements of mobile communication beyond IMT-2020, it is projected that this technology will operate in a highly heterogeneous environment and provide ubiquitous connectivity for a wide range of devices, new applications and use cases”.
IMT-2020 is a term developed by the International Telecommunication Union (ITU)’s Radio communication Sector in 2012 to develop the vision of “IMT for 2020 and beyond.” The ITU has set a timeline that calls for the standard to be finished in 2020.
Pakistani telecom regulator said the scope of IMT-2020 is much broader than previous generations of mobile broadband communication systems. The ITU’s work in developing the specifications for IMT-2020 in close collaboration with the whole gamut of 5G stakeholders is now well underway along with the associated spectrum management and spectrum identification aspects. IMT-2020 will be a cornerstone for all of the activities related to attaining the goals in the 2030 Agenda for Sustainable Development.
The draft framework for 5G enables the use of radio spectrum on trial basis for noncommercial purposes to carry out trials for innovative use of radio frequency spectrum, apparatus/equipment and academic purposes including but not limited to scientific research, radio concepts and new systems demonstrations, added PTA.
The PTA said Government of Pakistan (GoP) policy directive based framework invites all stakeholders for participation in subject trials.
The framework has been issued only for temporary Test and Development licenses/authorizations which shall include criteria for the provision of authorization, conditions, duration, and other terms and conditions.
The Frequency Allocation Board (FAB) shall assign the spectrum to be used for subject trials which shall become effective from the date of Authorization issued by PTA.
It is important to mention here that the PTA said mere assignment of spectrum by FAB would not give right to the applicant for use of the same until Authorization is obtained from PTA.
The Test & Development Authorization allows an applicant to use spectrum on non-exclusive, non-commercial basis temporarily for the testing purposes.
There is no regulatory fee associated with subject non-commercial trial permission or the spectrum usage for said purpose. Also, users/consumers will not be charged for any services offered during the trial. The trial shall last for the period of three (03) to Six (06) months or as stated in the Authorization issued by PTA Spectrum for the trial will be available only at the designated test sites subject to localized restrictions (if any) due to National security issues.
#India’s #ecommerce crackdown upends big foreign players.
#Amazon, #Flipkart have till end of Jan to comply with new restrictions, that sharply restrict the use of their hefty balance sheets to boost sales on their websites. #FDI https://www.ft.com/content/6dd8188a-14c2-11e9-a581-4ff78404524e via @financialtimes
Saifuddin Bhanpurawala is one of dozens of shopkeepers on a dusty Mumbai back street that bustles with customers buying everything from tobacco to perfume.
But Mr Bhanpurawala’s mobile phone shop is going through hard times, selling as few as two handsets in a bad week. He says the reason is obvious: the huge discounts available online at Amazon and Walmart-owned Flipkart, the two biggest players in India’s fast-growing ecommerce sector.
“If we sell something at Rs5,000 [$70], they might sell it at Rs2,500 — we don’t understand how it’s possible,” said Mr Bhanpurawala, 28. He argued that the Indian government’s tolerance of such practices has demonstrated its lack of concern for small businesses: “The rich are getting richer and the poor are getting poorer.”
With a general election just four months away, prime minister Narendra Modi is moving to address such complaints. Amazon and Flipkart have been given until the end of this month to comply with new restrictions, announced in late December, that sharply restrict the use of their hefty balance sheets to boost sales on their virtual marketplaces.
But while the move is intended to strengthen the government’s credentials among India’s millions of small retailers, it has sparked alarm for two of the country’s biggest outside investors. Walmart’s $16bn buyout of Flipkart last year was the biggest foreign direct investment in Indian history, while Amazon has committed $5bn in capital to its Indian operation.
“A sudden change in rules is not helpful,” said Mukesh Aghi, president of the US-India Strategic Partnership Forum, which works to build economic ties between the countries. “It sends a message to groups that the environment is not transparent.”
‘Behave like a marketplace’
When India opened its economy to foreign capital in the 1990s, it was careful to maintain protection for small retailers. Foreign investment was allowed in single-brand but not multi-brand retail — allowing clothing labels, for example, to open stores but keeping out the foreign supermarket chains that were feared by many shopkeepers.
As ecommerce took off, New Delhi updated these rules for the internet age. Foreign-backed companies would be allowed to run virtual “marketplaces” — platforms enabling independent sellers to connect with customers. But they were barred from selling goods themselves, stopping them from functioning as online supermarkets.
The vague wording of the rules, however, meant that Amazon and Flipkart — backed with billions in capital from foreign investors led by US fund Tiger Global — quickly found ways to use their balance sheets to turbo-charge growth, outraging peers in the industry.
“We were flabbergasted all the while at the blatant violations of the FDI policy,” said Sanjay Sethi, chief executive of ShopClues, one of the largest rivals to the dominant duo. “We started doubting ourselves — are we not interpreting these rules correctly?”
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Flipkart pursued a different tack. Instead of forming directly controlled sellers, it supplied many of them through a huge wholesale distributor, named Flipkart India. The distributor’s revenue has far outstripped that of the online marketplace entity, while incurring heavy losses.
#India’s #ecommerce crackdown upends big foreign players.
#Amazon, #Flipkart have till end of Jan to comply with new restrictions, that sharply restrict the use of their hefty balance sheets to boost sales on their websites. #FDI https://www.ft.com/content/6dd8188a-14c2-11e9-a581-4ff78404524e via @financialtimes
Saifuddin Bhanpurawala is one of dozens of shopkeepers on a dusty Mumbai back street that bustles with customers buying everything from tobacco to perfume.
But Mr Bhanpurawala’s mobile phone shop is going through hard times, selling as few as two handsets in a bad week. He says the reason is obvious: the huge discounts available online at Amazon and Walmart-owned Flipkart, the two biggest players in India’s fast-growing ecommerce sector.
“If we sell something at Rs5,000 [$70], they might sell it at Rs2,500 — we don’t understand how it’s possible,” said Mr Bhanpurawala, 28. He argued that the Indian government’s tolerance of such practices has demonstrated its lack of concern for small businesses: “The rich are getting richer and the poor are getting poorer.”
With a general election just four months away, prime minister Narendra Modi is moving to address such complaints. Amazon and Flipkart have been given until the end of this month to comply with new restrictions, announced in late December, that sharply restrict the use of their hefty balance sheets to boost sales on their virtual marketplaces.
But while the move is intended to strengthen the government’s credentials among India’s millions of small retailers, it has sparked alarm for two of the country’s biggest outside investors. Walmart’s $16bn buyout of Flipkart last year was the biggest foreign direct investment in Indian history, while Amazon has committed $5bn in capital to its Indian operation.
“A sudden change in rules is not helpful,” said Mukesh Aghi, president of the US-India Strategic Partnership Forum, which works to build economic ties between the countries. “It sends a message to groups that the environment is not transparent.”
‘Behave like a marketplace’
When India opened its economy to foreign capital in the 1990s, it was careful to maintain protection for small retailers. Foreign investment was allowed in single-brand but not multi-brand retail — allowing clothing labels, for example, to open stores but keeping out the foreign supermarket chains that were feared by many shopkeepers.
As ecommerce took off, New Delhi updated these rules for the internet age. Foreign-backed companies would be allowed to run virtual “marketplaces” — platforms enabling independent sellers to connect with customers. But they were barred from selling goods themselves, stopping them from functioning as online supermarkets.
The vague wording of the rules, however, meant that Amazon and Flipkart — backed with billions in capital from foreign investors led by US fund Tiger Global — quickly found ways to use their balance sheets to turbo-charge growth, outraging peers in the industry.
“We were flabbergasted all the while at the blatant violations of the FDI policy,” said Sanjay Sethi, chief executive of ShopClues, one of the largest rivals to the dominant duo. “We started doubting ourselves — are we not interpreting these rules correctly?”
Flipkart pursued a different tack. Instead of forming directly controlled sellers, it supplied many of them through a huge wholesale distributor, named Flipkart India. The distributor’s revenue has far outstripped that of the online marketplace entity, while incurring heavy losses.
In the last financial year, Flipkart India made a net loss of $293m on sales of $3bn. That dwarfed the revenue of Flipkart Internet, the marketplace business, which booked sales of $398m, mostly on commissions charged to sellers.
From 2016, Amazon also dramatically increased the scale of its wholesale operation. In the last financial year, that business had revenue of $1.7bn, up from $458,000 two years before.
How technology is driving financial inclusion around the world
https://www.worldfinance.com/banking/how-financial-technology-is-driving-financial-inclusion-around-the-world
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The vast majority of unbanked adults live in developing economies. Compared with developed nations, banks in these regions tend to have far fewer branches. For instance, in Pakistan there were fewer than 11 commercial bank branches per 100,000 adults in 2017, compared with 31 in the US, according to the World Bank.
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This financial flexibility helps families meet unexpected economic setbacks and allows entrepreneurs to invest in their businesses and create jobs, Wald added. “Most importantly, digital financial inclusion allows economies to grow stronger and more inclusive.” For this reason, countries like Pakistan have come up with financial inclusion strategies in recent years. Pakistan’s government adopted a National Financial Inclusion Strategy (NFIS) in 2015 that aims for 50 percent of adults to have bank accounts by 2020 – including 25 percent of women.
Out of Pakistan’s population of around 210 million, only 21 percent of adults had bank accounts in 2017, according to the World Bank. But with high mobile penetration rates, this could soon change: research by Financial Inclusion Insights (Fii) found that 84 percent of men and 71 percent of women in the country have access to a mobile phone.
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201m
Population of Pakistan
21%
of adults in Pakistan had a bank account in 2017
34%
of men in Pakistan had a bank account in 2017
7%
of women in Pakistan had a bank account in 2017
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Both Smith and Wald cited India as something of a success story for financial inclusion. Its cash-based economy quickly digitalised over recent years, and the rate of bank accounts opening has been “absolutely extraordinary”, Smith said.
In neighbouring Pakistan, however, many locals are still wary of financial institutions. In a 2015 survey by Gallup Pakistan, 65 percent of respondents said they would rather deal with someone they knew than a bank.
Rehan Akhtar is the chief digital officer of Karandaaz, a non-profit that promotes financial inclusion and access to finance for micro, small and medium-sized enterprises (SMEs) in Pakistan. He told World Finance that convincing Pakistanis to adopt digital financial services over cash would require new policies, including digitalising all government transactions and enabling an environment for e-commerce transactions.
NFIS has prompted a number of new initiatives, including mobile bank account schemes, biometric identity verification and the promotion of fintech services. These policies have already strengthened the country’s microfinance sector.
In Pakistan, Akhtar said SMEs account for over 90 percent of the country’s 3.2 million businesses and 30 percent of GDP. “As a consequence, growth of SMEs can have a direct impact on achieving the targets of poverty alleviation and sustainable growth for Pakistan’s economy.”------------------
Investors are increasingly realising the opportunity unbanked populations offer. For instance, Chinese payment provider Ant Financial bought a 45 percent stake in Pakistan’s Telenor Microfinance Bank (TMB) for $184.5m in 2018. Ant Financial aims to develop mobile payments and digital financial services at TMB, which owns Easypaisa.
Stephen Rasmussen, who leads CGAP’s work on sustainable digital financial-services ecosystems, argued in a blog post that Ant Financial’s interest in Pakistan could be a game-changer by “spurring other businesses to become more ambitious about increasing mobile wallet uptake and use” and “[establishing] an investment benchmark in the market that could encourage additional investment into other fintech businesses”.
#China approves PayPal's (PYPL) acquisition of a 70% equity interest in #Chinese GoPay. It will not be an easy market to break into. #Chinese #digital #payments services #Alibaba (BABA)'s #AliPay & #Tencent (TCEHY)'s WeChat Pay have dominated that market https://www.cnn.com/2019/09/30/tech/paypal-gopay-china-payments/index.html
As western companies jockey for a way into China's enormous digital payments business, PayPal has clinched a license to provide digital payment services in China, following its acquisition of a majority stake in a Chinese payments company.
China's central bank has approved PayPal's (PYPL) acquisition of a 70% equity interest in GoPay, the companies announced Monday. PayPal says this makes it the first foreign firm licensed to provide digital payment services in China.
The terms of the deal, which is expected to close by the end of 2019, have not been disclosed, a PayPal spokesperson said. GoPay is a small Chinese payments provider that functions similarly to PayPal — it allows merchants to accept non-credit card payments straight from their websites.
American payment and credit card companies have for years been trying to break into the world's second largest economy, where the growing middle class means a growing market of consumers seeking lending, credit card and money transfer services. In recent years, the Chinese government has opened the door to foreign firms to start applying for licenses to launch payments networks in the country, but the approval process has been slow-going. By taking on majority ownership of GoPay, PayPal acquired access to the Chinese firm's license to provide online payment services.
"We look forward to partnering with China's financial institutions and technology platforms, providing a more comprehensive set of payment solutions to businesses and consumers, both in China and globally," PayPal CEO Dan Schulman said in a statement on LinkedIn.
The deal opens the door for PayPal to process digital transactions in China — which are estimated to total in the trillions. But it may not be an easy market to break into. Chinese digital payments services Alibaba (BABA)'s AliPay and Tencent (TCEHY)'s WeChat Pay have dominated that market, in part by making it easy for merchants to use their services and accept payments from mobile phones rather than setting up the infrastructure to accept credit card payments. As of last year, more than 8 million brick-and-mortar stores in China accepted AliPay.
The licensing requirements have made it difficult for American companies to operate in the country, while benefiting Chinese companies.
Only one other American company has successfully made inroads in the market. Last year, American Express received preliminary approval from the People's Bank of China to start building out a domestic clearance and settlement network through its joint venture with Chinese partner LianLian group.
In every other market in the world, American Express processes transactions through its own, Arizona-based network. But in China, it's had to rely on the state-controlled payments giant China Union Pay to process transactions. The preliminary approval it received last year will allow it to build out its own network to process payments on AmEx branded cards.
Mastercard and Visa have also tried to offer such services in China.
Pakistan - eCommerce
https://www.export.gov/article?id=Pakistan-eCommerce
Describes how widely e-commerce is used, the primary sectors that sell through e-commerce, and how much product/service in each sector is sold through e-commerce versus brick-and-mortar retail. Includes what a company needs to know to take advantages of e-commerce in the local market and reputable, prominent B2B websites.Last Published: 7/10/2019
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Mobile eCommerce
With the introduction of 3G/4G services, internet penetration has risen rapidly. Internet subscriber growth in Pakistan is averaging over 22 percent per year and total subscribers crossed the 44.6 million mark in 2018. Cheap smartphones, low cost of 3G/4G services and a consumer-goods obsessed middle class has meant that Pakistan’s e-commerce sector is “mobile first”: some e-commerce start-ups claim that over 75 percent of their total business is online.
Major Buying Holidays
E-commerce entrepreneurs enjoy heavy traffic on Pakistani holidays and event season such as Eid-ul-Fitr (June), Eid-ul-Adha (September), Black Friday, New Year and Wedding Season (October through April). Major sporting events can also drive purchases of related equipment and apparel.
Social Media
The introduction of mobile broadband coupled with affordable smartphones has driven the social media use and the popularity of Facebook, Twitter, Skype and Instagram. Facebook leads social media with more than three billion connections per day and more than 17.2 million user accounts. Twitter is also fast becoming the preferred social media portal with more than 280 million connections per day. Google, You Tube and Instagram are also popular.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
#Pakistan registers 38 #exporters with #Amazon. #Covid19 #pandemic has increased the importance of #ecommerce manifold, making it an extremely vital sector of the #economy. State Bank of Pakistan now has regulatory framework for online cross-border trade. https://tribune.com.pk/story/2245651/2-pakistan-registers-sellers-amazon/
Pakistan is in the process of registering the country’s goods sellers with US e-commerce giant Amazon and has sent a list of 38 exporters for registration.
The initial list of 38 exporters comprises surgical and sports goods, and home textile sectors and the list will be expanded to other sectors in the near future, after successful trial of the shortlisted companies, announced Adviser to Prime Minister on Commerce and Investment Abdul Razak Dawood while chairing second meeting of the National e-Commerce Council on Thursday.
A video message of the World Trade Organisation (WTO) director general, who appreciated Pakistan’s e-commerce policy as a step in the right direction, was also shared with meeting participants. The adviser spoke about the progress made in the recent past on the e-commerce policy, since its approval on October 1, 2019. He appreciated coordinated efforts of public and private sectors for effective implementation of the policy.
Dawood emphasised that the trend of e-commerce had accelerated in recent years with the development and easy accessibility of internet. He added that due to the Covid-19 pandemic, the importance of e-commerce had increased manifold, making it an extremely vital sector of the economy.
He underscored the importance of directing resources towards digital adoption and connecting small and medium enterprises (SMEs) with e-platforms across the globe while exploring new market access opportunities for them.
Sharing progress, a State Bank of Pakistan (SBP) official said the regulatory framework for the facilitation of cross-border B2C (e-commerce) had been developed, which would be adopted after integration with the e-commerce module to be developed by the Federal Board of Revenue (FBR) in the Web-based One Customs (WeBOC) system. Punjab and Khyber-Pakhtunkhwa revenue authorities apprised meeting participants of the incentives being announced for the digital and e-commerce sector in provincial budgets to support it during these challenging circumstances.
Representatives of the Consumer Protection Councils of Punjab and Lahore and of the Consumer Rights Commission of Pakistan informed meeting participants that, in line with the e-commerce policy, the federal and provincial consumer laws were being amended to include e-commerce and the disputes arising from the sector.
They added that webinars were being planned to educate the academia and train judicial officers in consumer protection. Meanwhile, the Securities and Exchange Commission of Pakistan (SECP) revealed that several new initiatives were being planned to promote e-commerce, including a separate sector classification for e-commerce.
So far, 152 businesses have registered on its portal, which has reduced the time required for company registration to four hours.
Speaking on the occasion, the commerce secretary said the Ministry of Commerce was continuously engaged with Pakistan’s foreign trade missions for promoting trade and exploring new markets for exporters. In this regard, a new development is the registration of Pakistani sellers with Amazon.
#Unilever’s #Pakistan #Delivery Service Partner blueEX Plans #IPO on #KSE to Expand Network. #Karachi-based courier service plans to sell new shares equal to 25% of the company within the next two months. #ecommerce #economy #tech https://www.bloomberg.com/news/articles/2021-02-19/unilever-s-pakistan-delivery-partner-plans-ipo-to-expand-network
Universal Network System Ltd., a Pakistan courier service that counts the local units of Unilever Plc and Nestle SA as clients, is planning an initial public offering to expand its network and bolster its technology backbone.
The Karachi-based company, which operates the blueEX courier service, plans to sell new shares equal to 25% of the company within the next two months, said Chief Executive Officer Imran Baxamoosa. He didn’t disclose financial details.
The initial share sale will make it the first logistics company to list in Pakistan and lure investors to a business that’s crucial for the nation’s booming e-commerce industry, according to Topline Securities Pakistan Ltd., financial adviser for the IPO.
“There is some crazy exponential growth that is being foreseen right now,” Baxamoosa said in a phone interview. “We have grown organically so far but now it’s about time that we get aggressive.”
The courier company that started by handling cargo in 2005 entered the e-commerce business six years later by going door-to-door and convincing companies to start online sales. It even made websites, back-end software and set up a call center for its clients.
It now has about 1,000 employees and over 350 vehicles. The company will use the proceeds to boost its network fourfold. It will also add servers and other IT equipment.
The nation’s e-commerce industry is in its infancy but is growing rapidly as internet and smartphone penetration jump, according to Ruchir Desai, fund manager at Hong Kong-based Asia Frontier Capital Ltd. The pandemic could be a big trigger for the market, he said.
The company handled 2.1 million shipments and 4.5 billion rupees in cash deliveries in the year ended June. It has grown annually by about 70% on average since 2012. The company forecasts revenue will rise more than three times to 4.3 billion rupees in fiscal 2023, according to Baxamoosa.
#US-based retail giant #Amazon adds #Pakistan to the Approved Selling Countries List. #Pakistani sellers and #exporters will be able to use world's largest #ecommerce platform. It will energize ecommerce in Pakistan and boost the country's #exports. https://www.techjuice.pk/pakistan-in-amazon-approved-selling-countries-list/
Sellers get excited! Buyers, don’t warm your credit cards up just yet!
Pakistan has finally bagged a position in the Amazon approved selling countries. Accounts can be made using Pakistani details.
Standing ovation to the efforts of the people behind this incredible achievement, Aisha Moriani (Joint Secretary, Ministry of Commerce), Omer Gajial (Ex Amazon Category Development Head for Amazon North America division), and Shoaib Sarwar (deputy Consul General, Consulate General Pakistan, Los Angeles) along with the team members of NECC (National Ecommerce Council) and Badar Khushnood from Pakistan Software Houses Association, just to name a few.
They have been working day and night in getting Pakistan added in Amazon’s approved sellers list, and their hard work has paid off!
This milestone will drastically change the game and result in a new era of economic growth as more sellers will visit the platform than ever before.
Previously, Adviser to Prime Minister on Commerce and Investment Abdul Razak Dawood emphasised that the trend of e-commerce had accelerated in recent years with the development and easy accessibility of internet. He added that due to the Covid-19 pandemic, the importance of e-commerce had increased manifold, making it an extremely vital sector of the economy.
Now that Pakistan has been added to the approved sellers list of Amazon, one can only pray and hope for this to steer in the positive direction for the development of the country!
Amazon, the e-Commerce giant, has recently added Pakistan to its approved sellers list, making it the 102nd country on its platform. This is expected to open up new opportunities for young men and women enabling a new breed of entrepreneurs to join the export market.
https://www.brecorder.com/news/40091975
An important milestone, now Pakistani merchants will be able to sell their products on the platform with ease. It will mostly benefit Pakistan-based merchants who want to sell their products abroad. Amazon has a huge network. The potential of the marketplace on Amazon is three times bigger than any other e-Commerce platforms.
There are over 2 million people selling on Amazon worldwide. Almost anyone can list an item for sale on Amazon, whether it’s something you’ve purchased wholesale, made yourself or simply a product you no longer want.
Fulfilment by Amazon (FBA) is a business model that Amazon offers, which really is a game-changer for online businesses. Through the FBA programme you send your product inventory in bulk to an Amazon warehouse and when a customer purchases your product, Amazon packs up the product and sends it to the respective customers.
When you are selling products via FBA you do not have to fulfil individual orders, manage returns, or deal with customer service on issues regarding deliveries. You can send in hundreds or thousands of items to Amazon warehouse at the same time instead of running to the post office every day to ship your orders.
One is advised to start with ordering small inventory at first. This approach enables you to test a product market and check whether the products you intend to sell belongs to an interesting niche and has the potential to get sold.
Targeted keywords are said to make a difference and these are so important in Amazon listings. With the right keywords in titles and descriptions of your products, you will, it said, quickly see your product searches relatively on the top and they will start getting sold well. It is recommended by Amazon experts that you get key insights, clear directions and a complete walk-through on how to sell well on Amazon FBA from Pakistan right now with Enabler’s training courses.
Firstly, you are expected to have to look at your competitors and find the profitable products relating to your product niche. Also you are recommended to do your research and look at Amazon’s best sellers as well. Moreover, you can use tools and services like AMZ Scout or Smasher to get all the related data of the products you are interested in like their competitor Intel, monthly sales and more.
It is also recommended that you photograph your product from different angles, including close ups, in operation mode, and its scaling size picture too. Also, you can add 3D images and videos of the product to make it more engaging. Amazon allows up to 250 characters to be used for product titles, but that does not mean that you have to use all the 250 characters. Optimize your bullet points about the description of the product, so that when the customer lands on your product page, they should see all the details regarding the product. Publish reviews: If 200 people are saying product 1 is great and very few people are saying anything about product 2, then guess which one of the products you are going to get?
Pakistan’s e-Commerce industry is emerging rapidly and has the potential to strengthen country’s economy. The existing ICT infrastructure is linking remote areas to mainstream.
At the National e-Commerce Council, a policy framework discusses the views and concerns of all stakeholders and makes recommendations based on them. The proposed policy framework tends to facilitate freelance service providers, existing e-Commerce businesses and encourage entities involved in traditional commerce to venture into e-Commerce, thereby improving prospects of productivity, generation of new employment opportunities and enhanced levels of consumer protection.
Amazon adds Pakistan to the seller list, allowing Pakistani businessmen to sell globally
https://ohionewstime.com/amazon-adds-pakistan-to-the-seller-list-allowing-pakistani-businessmen-to-sell-globally/161621/
E-commerce giant Amazon has added Pakistan to the list of sellers and qualified Pakistani entrepreneurs to sell on the platform, the Commerce Department announced Friday. The ministry said it will give Pakistani manufacturers access to a global e-commerce platform on Amazon, opening up a new chapter in the supply chain that Pakistani manufacturers can sell directly to their customers. “This marks the achievement of the national e-commerce policy milestone, Amazon This listing will enable manufacturers to respond to customer needs, design new products, deliver high quality at competitive prices, and access new market segments.
“It created a great opportunity for Pakistani entrepreneurs,” said Eric Broussard, vice president of Amazon International Seller Services, in a message by connecting to and forming part of a global e-commerce network. I did. As of today, Pakistani entrepreneurs have announced that they are eligible to sell on Amazon. We want to work with Pakistan’s dynamic business community, including small and medium-sized sellers, to help connect with customers around the world. Commerce Advisor Investment Abdul Razak Dawood said the Commerce Department will continue discussions with Amazon’s focus groups to further guide Pakistan’s business community to take full advantage of this opportunity.
He said that to get the most out of it, you need to do a lot of hard work in training, quality assurance, logistics improvements, payment systems, customer relationship management, and more. Pakistan remains off Amazon’s seller list despite its presence in neighboring India, and Pakistani retailers who want to sell their products on the market will have to register themselves from other countries. I will. After being added to the list, Pakistani merchants will be able to easily sell their products on the platform. However, it is reportedly time consuming to take full advantage of it. The Commerce Department initially shared the names of only 38 exporters with Amazon for registration.
Chinese company SpeedaF rolls out nationwide logistics services in Pakistan
https://www.app.com.pk/global/chinese-company-rolls-out-nationwide-logistics-services-in-pakistan/
The Chinese company which has rolled out nationwide logistics services across Pakistan was likely to cover about half of its population in February, Sun Chao, head of Speedaf Pakistan said on Friday.
“Moreover, we also provide China-Pakistan cross-border logistics services and warehouse and delivery services in Pakistan,” he said in an interview with China Economic Net (CEN).
As a leading logistics services provider plowing emerging markets, Speedaf initiated its business layout in Pakistan in September 2021.
Up to now, express delivery covering all the four provinces of Pakistan has become available.
“When a Pakistani buyer puts an order of a certain Chinese product online, which can be bought in Pakistani Rupees, what he needs to do next is only to wait for the parcel to be delivered to his doorstep. On the other hand, we collect cargo at Chinese ports, transport them with our own customs solutions, sort them out in Pakistan, and carry each parcel to the customer’s home”, Sun Chao explained.
To support logistic demand from cross-border trade and local online consumption, high-standard warehouses with a total area of over 7000 square meters have been set up in Islamabad, Karachi, Lahore, and Multan. This figure is still expected to rise.
“The warehouse management system allows receipt of cargo by container and delivery by piece, providing convenient options for e-commerce businesses and offline wholesale clients’, said Sun Chao.
Following the domestic delivery model in China, Speedaf Pakistan offers both economical and standard express delivery options in Pakistan. For parcels to be delivered within a city, customers can choose to receive on the very day or on the next day; for inter-city delivery within a province, packages can arrive on the next morning or later on the next day; for inter-province demand, there are overnight delivery and Third Day Delivery.
Speedaf has established close cooperation with major e-commerce platforms in Pakistan with a special focus on electronic communication equipment, intelligent security products, and 3C products (computer, communication, and consumer digital products). In addition, customized services are also available such as the return, examination, and replacement of goods, less-than-truck-load, and cash on delivery.
“Pakistan is a populous country with over 200 million people, 3.94 percent increase of GDP even amid the ravaging pandemic, booming e-commerce industry, favorable polices for investment, and sound road network linking major cities which provides convenience for logistic transport. Underpinning our business is the deep attachment between the two peoples and the two economies, Sun said.
“With an expected 200 service stations in over 50 cities in Pakistan, we will provide at least 2000 employment opportunities for local people. They will be trained to become professional talents.”
The e-commerce sector in Pakistan is progressing in leaps and bounds. The Special Assistant to the Prime Minister (SAPM) on e-commerce Aon Abbas Buppi has said that Pakistan is aiming to increase e-commerce trade volume up to $9 billion by June Building on the e-commerce boom, we will expand coverage and shorten the delivery time to bring further convenience to Pakistani people, said Sun Chao.
Alibaba extends logistics arm to Pakistan for e-commerce unit Daraz | TechCrunch
https://techcrunch.com/2022/06/17/alibaba-logistics-arm-pakistan-daraz/
Cainiao, the logistics service operated by Alibaba, is launching two automated distribution centers in Karachi and Lahore as its first entry into Pakistan, it announced on Friday.
Alibaba’s overseas expansion has manifested in a mix of investment and integration over the past decade. In 2018, the e-commerce titan boughtPakistan’s e-commerce platform Daraz for an undisclosed amount. It controls the online shopping service Lazada, which is neck to neck with Shopee in Southeast Asia, and owns a stake in Turkey’s Trendyol as well as Indonesia’s Tokopedia.
Founded in 2012, Daraz was born out of the internet venture builder Rocket Internet like its sibling Lazada. It delivers to Pakistan, Bangladesh, Sri Lanka, Nepal, Myanmar and other countries in the region. Daraz declined to disclose how many active users it has, only saying it has “served a potential user base of 500 million people” and grew 85% in gross merchandise volume (rough metric for sales in e-commerce) over the last two years.
The smart distribution centers will come with a suite of Cainiao’s in-house tech like electric control units, software-based programmable logic controllers (PLC is critical for warehouse automation but traditionally is hardware-powered, Caniao told TechCrunch) and a computing solution that promises to combine the capabilities of cloud and the speedy runtime on the edge.
The suite of warehousing solutions, said Cainiao, could reduce manual labor by half and increase human productivity by 100%.
Given Alibaba’s far-reaching footstep worldwide, it won’t be surprising to see Cainiao following the parent into more countries. Cainiao already operates nine large overseas distribution centers across Europe, Asia and the Americas and has plans to ramp up operations in Southeast Asia, South Asia and Europe, the company’s vice president of technology Ding Hongwei said in a statement.
Integrating Cainiao into Alibaba’s sprawling e-commerce portfolio indeed looks to be the plan.
“Logistic network development is a priority in our globalization strategy as logistics is the fundamental infrastructure supporting a high-quality consumer experience based on integrated product supply from cross-border and locally,” Daniel Zhang, CEO of Alibaba, said on the firm’s December earnings call.
“Cainiao has been developing logistic network in Southeast Asia and Europe, leveraging the commerce use cases presented by Lazada, AliExpress, and the Trendyol.”
AliExpress is Alibaba’s cross-border e-commerce platform that mostly connects Chinese sellers to global consumers.
ALIBABA AND THE MERRY MEN -1
FOR THE TICKET SIZE OF ALIBABA TRADE DEALS TO BE VIABLE ON E-COMM,1ST ALIBABA HAS TO TIE UP WITH LOW COST FREIGHT FORWARDERS TO KEY EXPORT HUBS - FROM WHERE SEVERAL TRANSSHIPMENT OPTIONS ARE THERE THE CUTTING EDGE IS QUALITY AND FOB PRICE OF GOODS + COST AND TIME FOR LOGISTICS.SO THE QUALITY IS THE CORE COMPETENCE OF THE EXPORTER AND THE LOGISTICS
IS THE KEN OF ALIBABA !
THEN ALIBABA HAS TO HOST VIRTUAL TRADE FAIRS,WHERE PAKISTANI EXPORTERS CAN SHOWCASE PRODUCTS,INNOVATION,TECH,LABOUR STANDARDS ETC.
ALIBABA HAS TO TIE UP WITH LOW COST EXPORT FINANCING OPTIONS,AS IN FACTORING.FORFAITING ETC.,TO PROVIDE AN ALT TO PAKISTANI EXPORTERS AND OFFER FREE TRAINING AND MARKET INT ON THE SAME TO PAKISTANI EXPORTERS VIA VIRTUAL SEMINARS
ALIBABA CAN SHARE MARKET, FASHION AND CUSTOMER INTELLIGENCE WITH PAKISTANI EXPORTERS, FREE OF COST
ALIBABA CAN CREATE THE EXPORT MARKET,AS FOR EXAMPLE IN EU,WHERE POWER AND GAS HAS HIT THE ROOF,AND MANUFACTURING WILL CLOSE DOWN.SMALL RETAIL STORES IN EU, CAN ONLY USE ALIBABA TO CONNECT TO PAKISTANI SME EXPORTERS TO IMPORT QUALITY AT LOW COST ON DEFERRED PAYMENT.SO ALIBABA WILL DO VIRTUAL SEMINARS TO MARKET PAKISTAN TO THESE IMPORTERS AND THEN LINK THE 2 PARTIES.
ALIBABA NEEDS TO ALSO,DEVELOP A SYSTEM OF RATING,OF PAKISTANI EXPORTERS AND THEIR IMPORTERS, ON VARIED PARAMETERS,SO THAT PAYMENT AND CREDIT RISK CAN BE ACCURATELY,CAPTURED AND FORECASTED.THIS WILL AID IN EXPORT FINANCING AND THE LOWERING OF THE COST OF EXPORT FINANCING AND ALSO AID ALIBABA,IN FUNDING THE POST EXPORT FINANCE OF GOLD RATED EXPORTERS AND IMPORTERS (BASED ON RATING AND WITH GROUP CREDIT INSURANCE).
ALIBABA IS CASH RICH,AND CAN ENTER INTO THE POST SHIPMENT EXPORT MARKET - TO USE IS TREASURY,AT MUCH HIGHER ROI (AND NIL RISK) AND ALSO BOOST EXPORT VOLUMES
THIS WILL ALSO AID ALIBABA IN OFFERING CREDIT INSURANCE TO PAKISTANI EXPORTERS,WHICH THEN ALIBABA CAN REINSURE,ON A GROUP BASIS,BASED ON A RATING CLASS OR GEOGRAPHY OR PRODUCT SEGMENT.
THIS WILL ALSO AID ALIBABA IN FINDING A LOGISTICS VENDOR WHO CAN ISSUE MULTIMODAL BL AT KARACHI WAREHOUSE,O/S PORT QASIM FOR GOLD RATED EXPORTERS AND IMPORTERS,WHICH THEN,CAN BE DISCOUNTED BY THE EXPORTERS WITH THE BANKS OR THIRD PARTIES.dindooohindoo
ALIBABA AND THE MERRY MEN - PART 2
THE BIGGEST PROBLEM FACED BY PAKISTANI EXPORTERS,IS IMPORT OF INPUTS,LC FOR PURCHASES AND FX RISK FOR EXIM
THE ONLY ENTITY IN THE WORLD,TO WHOM THIS PAIN,CAN BE OUTSOURCED IS ALIBABA
ALIBABA HAS MONEY,AND CAN RAISE CASH FROM ANY NATION,IN THE WORLD
SO,FOR GOLD RATED EXPORTERS OF PAKISTAN,IT CAN OFFER ACCOMODATION FINANCING OF IMPORTED RAW MATERIALS,BASED ON 5-10% MARGIN, AND THE LC IS OPENED,FROM SINGAPORE OR HK OR SHANGHAI. ALSO,THE LC CAN BE OPENED,IN ANY CURRENCY OF THE WORLD,AS ALIBABA WILL HEDGE IT,TO THE USD/PKR. AS AN ADDITIONAL SECURITY THE PAKISTANI EXPORTER CAN ROUTE THE EXPORT DOCUMENTS, VIA ALIABABA, SO ALIBABA CAN COLLECT THE IMPORT DUES FROM THE EXPORTER ON A DEFERRED BASIS,AND ALLOW THE EXPORTER TO CHOOSE THE DATE OF REMITTANCE,WHEN THE PKR APPRECIATES.
MOST IMPORTANTLY,SINCE ALIBABA WILL BE A PAYMENT GATEWAY FOR EXPORTS AND IMPORTS FROM AND INTO PAKISTAN GARMENT SECTOR,IT CAN DO OFFSET HEDGES AND CLEAR DUES WITH PAKISTANI EXPORTERS IN PKR - THUS MAKING THEM EXIT THE PKR-USD MARKET.AT THE SAME TIME,ALIBABA TREASURY,CAN PLAY THE FX MARKET,BOTH WAYS
THIS WILL REMOVE A HUGE BURDEN,FROM THE PAKISTANI GARMENT EXPORT SECTOR,AND CAUSE AN EXPLOSIVE SURGE, IN ALIBABA EXPORTS,FROM PAKISTAN OF ALL ITEMS - AND THIS MODEL
CAN BE USED ALL OVER THE DEVELOPING WORLD.
THE CRUX = ALIBABA HAS TO OFFER COMPREHENSIVE SOLUTIONS,ACROSS THE SUPPLY CHAIN,TO LOWER COST AND OBVIATE RISK - AND LET THE EXPORTER,FOCUS ON MANUFACTURING EXCELLENCE,AND INNOVATION AND CREATIVITY.
THAT IS THE WIN-WIN-WIN FOR EXPORTER-ALIABABA AND IMPORTER IN EU/ASIA.dindooohindoo
Pakistan a popular seller on Amazon
Over 1.2m vendors of country registered with marketplace
https://tribune.com.pk/story/2363968/pakistan-a-popular-seller-on-amazon
ISLAMABAD:
Pakistan has now become the third largest popular new seller on the Amazon marketplace, after the United States and China, with over 1.2 million registered vendors.
Pakistan was allowed to enter the Amazon marketplace in May 2021, a year after talks began in 2020, following the implementation of Pakistan’s first e-commerce policy, Marketplace
Pulse reported.
There are more sellers in Pakistan as compared to India, Vietnam, the UK
and Canada.
The country, which has just registered itself with the marketplace, is home to the world’s three largest Amazon seller groups. These vendors are expected to contribute to Pakistan’s exports of over
$28 billion.
Young entrepreneurs and small and medium-sized enterprises across the country will be able to avail the benefits offered by the platform, which will widen and diversify Pakistan’s export basket.
This will not only enhance their revenues but will also help the government in improving the macroeconomic outlook of the country,
it added.
The expansion of the e-commerce industry is important to support the medium and small-sized businesses to operate and make profit with the rising cost of
doing business.
Pakistan’s e-commerce policy is part of the overall Digital Pakistan vision aimed at paving the way for a holistic growth of e-commerce by creating an enabling environment in which enterprises have equal opportunity to grow steadily.
Major exports of Pakistan that contribute to the national economy include textiles, leather and sports goods, chemicals, carpets and rugs. Pakistan also exports significant quantities of rice, sugar, cotton, fish, fruits
and vegetables.
According to eCommerce analysis, Pakistan is the 37th largest market for eCommerce with revenue of $5.9 billion in 2021, placing it ahead of Iran.
With an increase of 45%, the Pakistani eCommerce market contributed to the worldwide growth rate of 15% in 2021.
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