Nepal’s biggest online marketplace gears up for 2019
Besides marking a new chapter in our lives, the start of a new year is important for other reasons too. Often, we find ourselves doing two things: looking back at the events that shaped the previous year, and crafting new goals and visions for the year ahead. As such, the start of new year is more than an indicator of time. It is also a moment for reflection, and an opportunity to learn from our mistakes. So was it for Daraz, Nepal’s largest online shopping marketplace, which in 2018 provided Nepali customers with various opportunities to shop for the best prices. APEX talked to Lino Ahlering, the Managing Director of Daraz. Just like many of us, Lino had a lot to say about the previous year and the company’s vision for 2019.
What were key milestones for Daraz in 2018?
The acquisition of Daraz and its integration into the Alibaba ecosystem has been a huge milestone for us. Being part of the largest and the most successful ecommerce player in the world makes us proud and allows us to work with and learn from the best in the industry. We have entirely revamped our website and our app, which means a significant improvement in customer experience.
Besides, our workforce grew significantly and we celebrated many events with our customers in 2018. In particular, the campaigns we organized in the last quarter for Dashain, Black Friday, 11/11 and 12/12 were very special.
What challenges have you faced in Nepal? How do you plan to overcome them?
The Nepali market is very promising and local consumers have been getting increasingly acquainted with online shopping. We clearly see a lot of curiosity and demand among local shoppers, particularly since Alibaba set its focus on Nepal.
Alibaba would not have chosen Nepal had it not seen the potential here. Nevertheless, we are aware of the need to make more people acquainted with online shopping and to establish customer trust in online shopping.
Another challenge has been logistics. Besides our own delivery fleet Daraz Express (DEX), we work with a variety of logistics companies for deliveries and returns, but the massive success of our 11/11 campaign took us close to our limits. Some customers did not receive their orders as quickly as expected.
We take this very seriously and for 2019, a strong emphasis is on strengthening our own fleet through heavy investment in our logistics infrastructure, as well as improving our collaboration with other logistics firms and our sellers for fast and smooth delivery.
How did the Nepali market respond to international sale days such as Black Friday, 11/11, and 12/12?
Black Friday was already a familiar name in the local market, but Alibaba’s 11/11 or 12/12 were completely new, not only for Daraz but also for domestic shoppers. Hence we focused a lot on informing our customers about our exclusive offers, deals and new features.
During 11/11, we sold more than 70,000 items, including exclusive launches. For 12/12, we focused on a different experience by introducing Collectible Vouchers that are automatically applied to your order and on Daraz Mall, a separate section for top brands and sellers that have to fulfil higher standards, giving customers even more assurance and comfort with their shopping experience.
What does the future of Nepal’s e-commerce look like?
Nepal is a super interesting market, and having worked in the ecommerce sector for some time now, I am impressed by the curiosity among local consumers about e-commerce. The sector has been growing rapidly and it is becoming more professional. In 2019, for example, we will introduce digital payments to our marketplace, which will be a huge milestone for us as well as for our customers.
What is important is that regulators support developments in the field. Not only Daraz but also our competitors have to engage in closer dialogue with regulatory institutions in order to shape the future market. In general, we are optimistic that the government sees the potential of e-commerce. Local competition will also increase, which I believe is very good. We in Daraz are convinced that competition is important. It helps us stay focused and set ambitious goals. Moreover, having strong competitors has a positive impact on the overall ecosystem, as customers get more accustomed to online shopping and gain more trust in digital business models.
What is Daraz’s vision for 2019? What other things can your customers look forward to?
2019 is going to be very exciting, as we have planned many initiatives to further enhance customer experience. This will involve several campaigns, with 11/11 as the annual highlight, offering Nepali shoppers top deals across the board. We know that there is still a lot to be done, but we are working hard to provide better value to our shoppers with a wider variety of brands and products. We also intend to further improve our logistics for faster delivery. 2019 means more features, improved services, wider variety and, most importantly, better deals. We are excited about this year and Nepali shoppers have good reason to be equally excited.
Quick questions with PARAMITA RL RANA
Q. Your New Year resolution?
A. This year it’s all about self care and self love. Nothing else.
Q. Alternate career choice?
A. Stylist.
Q. Most misunderstood thing about you?
A. People often mistake me for a snobby lady full of attitude. After they meet me, they are like “Oh my god! You’re so humble and sweet”.
Q. Your celebrity crush?
A. Shawn Mendes.
Q. You were star struck when you met?
A. Varun Dhawan and Sushmita Sen.
Q. One thing you do to cheer yourself up?
A. Dance like no one is watching.
Q. Something that people would be surprised to know about you?
A. I am very spiritual and have healing abilities.
Q. Your best and worst purchase?
A. Best purchase is my Varsace clutch and worst purchase could be shoes which I bought and have not worn even once.
Q. A question you hate to answer?
A. I answer every question. I am an open book.
Q. A quote you live by?
A. One day at a time.
US advised Nepal to think of our payback capacity
Minister for Foreign Affairs Pradeep Kumar Gyawali has come under flak for his recent US visit. At the center of the controversy was a statement from the US State Department which says the US wants Nepal to play a “central role” in the “Indo-Pacific” region. Some say Nepal should not be a part of the Indo-Pacific strategy, which is aimed largely at checking China’s military rise in the region. In this interview with Biswas Baral and Kamal Dev Bhattarai, the foreign minister says Nepal never acceded to be a part of any such strategy. He also pointed out the foreign policy priorities of Oli government.
What are the foreign policy priorities of Oli government?
The overarching motto of this government is: “Prosperous Nepal, Happy Nepali”. Our foreign policy is aimed at achieving this goal. Broadly, we are working on four areas: immediate neighbors, development partners, labor destinations and regional multilateral organizations. We attach highest importance to our neighbors and our focus with them has always been economic development. I am trying to enhance mutual trust and promote cooperation with our neighbors, in line with our national priorities. At the same time, our engagement with other key development partners has increased. Of late, our role in international arena has been more active, visible and productive.
Recently there seems to be an emphasis on expanding our foreign relations beyond our two giant neighbors.
We have embarked on a journey of stability and economic development. Our journey to prosperity has garnered global attention. To benefit from this, we are going to organize an international investment summit in March. When I meet my counterparts abroad at bilateral and multilateral forums, I convey the message that we want economic prosperity. I request them to support our tourism, and provide preferential facilities to our goods and services. Political stability is our major attraction.
Your recent US visit drew a lot of attention. Many were critical of Nepal’s closer embrace of the US.
Nepal adheres to the principles of non-alignment, Panchasheel and world peace. Guided by this spirit, we attach high importance to our relations with all countries. The spirit of ‘amity with all and enmity with none’ guides all our external relations. At the center of our foreign engagement is economic diplomacy. Global powers have their own ambitions, and regional powers have their own agenda. Nepal engages with all based on its domestic priority and necessity. We won’t be involved in any activity that is against our basic foreign policy principles or that impinge on genuine concerns of our neighbors. Perhaps due to the long transition there is a tendency in Nepal to be overly suspicious.
Your American counterpart, Mike Pompeo, projected Nepal as a central part of the US’s ‘Indo-Pacific Strategy’? Is that a right characterization?
Let me correct you. America has never said Nepal would be a central part of Indo-Pacific Strategy. They only talked about our pivotal role in this region. Nepal is current Chair of SAARC and immediate past chair of BIMSTEC. In this light, America may have expected greater role and visibility of Nepal in this region. I have made it clear that we do not have any global ambition. Our only ambition is economic development and prosperity. We want to graduate from LDC at the earliest and be a middle-income country by 2030. To meet those objectives, we need more investment. In bilateral meetings, it is natural that we put forward our expectations and they put forward their own. Ultimately, it is up to us to take or reject their offers based on our necessity and requirement.
Of late the geopolitical competition in Nepal between India, the US and China seems to have intensified. How do you balance those powers?
We never compare our relation with one country with another. Each relation is unique. Our relation with India is age-old. There is high people-to-people contact, of which the open border is the perfect symbol. We also have historical relations with China and it continues to support Nepal’s goals and aspirations. China is the second-biggest economy in the world and we want to connect with China for our economic development. Our engagement with China will further increases as a transit country. America is supporting our development projects and various areas of social development. It has been doing so since 1950s.
There is competition as well as engagement among big powers. We should not think there is only competition. Of late, there is growing engagement between India and China. There is trade dispute between America and other countries and there are tensions but there is also dialogue. We are closely analyzing those developments.
In your bilateral discussions in the US, what were the Americans mostly interested in?
First, they appreciated Nepal’s role in this region. They also expected Nepal to play an even bigger role. As an active participant of SAARC, BIMSTEC and other regional organizations, America perceives Nepal as a leader of this region. Second, the peace process in the Korean peninsula is gaining momentum. My counterpart was optimistic on this. America is of the view that countries should have a common position on UN Security Council proposal on North Korea. I clearly said that Nepal is in favor of denuclearization in the Korean peninsula and that Nepal wishes for the success of the ongoing peace dialogue.
Third, America officials wanted Nepal to give more attention to fair business and competitiveness when development projects are selected. Similarly, American officials advised that Nepal should think of its pay-back capacity on development projects. I clearly said that Nepal needs resources. We made it clear that we want investment and we want loan. But Nepal would also try to make terms and conditions favorable on development aid. I also requested American companies to invest in Nepal.
Some say the Americans wanted Nepal to crack down on North Korean activities on Nepali soil.
No such issues were discussed. As far as UN resolution on North Korea is concerned, Nepal supports it.
What is the status of relation with India?
We are satisfied with progress in Nepal-India relation. Our main concerns were development projects and there has been progress. Of late, India has amended its power guidelines, paving the way for greater energy cooperation. Now we can use Indian grid to supply electricity to third countries. The progress on inland waterways is also encouraging. Our produce are gradually getting access to Indian markets. Our bilateral mechanisms are regularly holding their meetings. There are commitments on both sides.
What then explains India’s refusal to accept the EPG report?
The EPG was formed at the initiation of two prime ministers. We are happy that there is an understanding on both sides on contentious issues. It is big achievement. I do not doubt the commitment of political leadership on EPG. But there are some spoilers in Nepal-India relations. The implementation of EPG could hamper their interest, and hence the delay.
What about our relation with China? There is no progress on the BRI.
We have identified some projects under the BRI and shared them with China. Some implementation mechanisms on BRI projects have also been established. We are now finalizing detailed reports and funding modalities of around a dozen projects under the BRI.
Quick questions with SURAJ SINGH THAKURI
Q. You were star-struck when you met…
A. Bhusan Dahal, when I first met him in 2000. I still get star-struck whenever I meet him.
Q. Most misunderstood thing about you
A. Some think that I am rude and arrogant
Q. Your best and worst purchase
A. Best purchase would be my car and worst purchase would be the pair of shoes I bought for Rs 12,000 thinking they were genuine. They were not.
Q. Alternate career choice
A. What I am doing right now is my alternate career choice. My dream career was to join the army.
Q. ‘Call Kantipur’ or ‘It’s my show’
A. Right now, ‘It’s my show’. 15 years ago, it would have been ‘Call Kantipur’
Q. Someone you want to interview
A. Former King Gyanendra
Q. Most difficult to interview
A. Guests who answer with a “yes” or “no” to a long question and people who are shy to open up in front of the camera
Q. The quote you live by
A. ‘Some are born great, some achieve greatness, and some have greatness thrust upon them’ by Shakespeare. I get confused by this quote. Was I born great, am I doing great or was greatness thrust upon me?
