eCommerce in Pakistan needs more time or some good investments which is not coming around to anyone. Big names are still struggling, all stores are selling same products no matter how much big or small company or individuals are sourcing in the back. The online one pound shop, Kaymu.pk has also received a lot of diatribe for its poor customer service and low deals with no value for money.
Here is our analysis of 6 default reasons of disruption that Kaymu failed in Pakistan:
How is it different from Daraz.pk and Olx.com.pk?
Kaymu never failed. It was bigger than Daraz in order numbers, almost equal in order value and 1/4th in OPEX. It missed a couple of funding rounds. Hence was acquired by Daraz which was taking flak from massive global investors for not going for the long tail market that Kaymu had. Kaymu charged between 2 and 12% of order value and had an over 75% Valid to Net order ratio. Which, by the way, was higher than Daraz. Even the recoveries were higher and the cost per order was lower. This is flat, on the numbers and in investor slide deck all over. Before answering this question in more detail, we should know success parameter here.
- It could be, as a startup?
- As a business platform for company?
- As an ecommerce or marketplace?
- or failed in delivering idea?
All have different answer. We would say either it Daraz or Kaymu both are not failed ideas. Daraz covered brands from day one till date and now it is first choice for all brands which want to sell online. Kaymu, however, started with small sellers who had something to sell but no platform other than OLX. OLX which had limited ecommerce oriented traffic (at that time) gave place to Kaymu and Daraz. These two also generated lots of traffic with extensive marketing as well. So with Kaymu (former Azmalo) people tasted how to build an online business and most of them become proper businesses with good earnings. So the model is not totally failed at all. Yes, when people compare it with Daraz, it may seem a little less popular.
Perhaps Kaymu and Daraz are operated both under the same group of companies. Kaymu, similarly, focusing primarily on the marketing part, bringing traffic, with not great focus on vendor quality and delivery. For Daraz worked with established brands given their quality and delivery. Kaymu should have been more selective with its vendors, giving much more weightage to quality of order processing rather than raw numbers only. There are two sides to Kaymu’s current situation. As a business service or as an E-Commerce platform, we have seen Kaymu get traction but from a customer service point of view, and as a Service Delivery channel it failed.