Executive Summary

Bazaar technologies started its operations in 2020 and has thereby expanded every year and is
one of the biggest B2B startups in Pakistan, however currently they have been facing an issue in
differentiating itself from its competitors and gaining a competitive edge, when expanding into
new cities in Pakistan. They have been able to successfully operate in bigger cities and gain
differentiation however the smaller cities need some extra effort for them to be successful. They
asked us to provide them with solutions in order to overcome this problem and we suggested
some to them.

We proposed to them three unique solutions including Firstly, a stock forecasting feature, which
will help keep a check on the materials ordered, left and reordering. This will help the retailers
with an optimized inventory procurement process while also benefiting Bazaar in forms of
earning a fee charged for this feature and gaining more retailers as their customers.

Secondly, they could differentiate themselves by combining retail with their fintech features, this
would enable the retailers to allow credit purchases on behalf of Bazaar to customers with a
specific credit limit, which in turn will help in creating trust from customers and a percentage of
credit return being earned by Bazaar.

Thirdly Bazaar could offer the flexibility of paying in installments on large orders to smaller
retailers who don’t have a lot of cash in hand to provide at the time of purchase and also offer
welcome promotions when entering into new cities to gauge customers. This will help penetrate
the market and more users will be attracted.

These solutions have been offered and an appropriate one will be implemented by Bazaar in
time.
Introduction
The e-commerce industry in Pakistan has been rapidly growing as a revenue of US$4.2 billion
was recorded in 2021, making it 46th largest e-commerce market in the world.1 Within this
market, the B2B marketplace has also been growing as we see the birth of numerous startups in
the past 3 to 5 years particularly.

Based in Karachi, Bazaar Technologies is one of the B2B (Business-to-Business) e-commerce

companies. It was founded in June 2020 by Hamza Jawaid and Saad Jangda with the aim to
simplify and digitalize the procurement process for retailers by providing an easy way to connect
with wholesalers and manufacturers.

The founders realized the challenges faced by the 5 million small and medium-sized retailers in
procurement due to the complex supply chain, and provided a solution. The company is currently
operating in 21 cities across Pakistan, reaching 30% of the population. It has entered three B2B
verticals which are Retail, Industrial, and Fintech.

Bazaar’s platform is a one-stop solution that allows them to access a variety of goods, that not
only include local but international and unbranded products to assist in obtaining raw materials.
Retailers can order at any time of the week and receive their delivery at their stores the next day
with no delivery costs. The app also contains features that can contribute to the productivity of
the businesses, like built-in calculator, cashbook dashboard, account reports, etc.

With time, they began to launch different platforms and launched a digital ledger app called
“Easy Khata” which helps in bookkeeping and customer engagement, providing a number of
features ranging from online backups to free daily SMS reminders to customers. According to
the founder, they have served 750,000+ merchants as of now. The company also provides
financial services of buy now pay later to their customers from both the Industrial and Retail
verticals.

Their recently launched app called “Bazaar Industrial” facilitates manufacturers in obtaining raw
materials, offering more than 15 categories, including chemicals, construction, steel, textile,
polymers, etc.2 “Bazaar Industrial aims to solve the problem faced by Pakistan’s $20B+ raw
material market.”3

The startup has raised over $100 million funded by 16 investors–with the most recent ones being
Indus Valley Capital and Zayn Capital. They received $1.3 Million in their first seed round and
$6.5 Million in the second. They raised $30 Million in Series A financing in August 2021 which

1
“Pakistan – eCommerce” (2022). International Trade Administration.
https://www.trade.gov/country-commercial-guides/pakistan-ecommerce
2
“Bazaar launches new platform” (2023). The News.
https://www.thenews.com.pk/print/1038811-bazaar-launches-new-platform
3
Bazaar Technologies. “Bazaar Industrial aims to solve the problem faced by Pakistan’s $20B+ raw material market”
LinkedIn. https://www.linkedin.com/feed/update/urn:li:activity:7029353586912313345/
was led by Defy Partner and Wavemaker Partners.4 Further, they raised $70 Million in Series B
funding in March 2022, being the country’s second-largest funding round, led by Dragoneer
Investment Group and Tiger Global.5

The Problem
Our Point of Contact was Hamd Amir, who has been working at Bazaar Technologies as a Biz
Performance and Planning Associate since February 2023. We reached out to him through
LinkedIn and maintained contact on LinkedIn.

The problem communicated to us was that Bazaar is planning on opening up in different cities,
including cities where it is not the first-mover. This means that their competitors (digital and
traditional) have reached out to the suppliers as well as the retailers and locked terms of trade
with them.

The challenge now is for Bazaar Technologies to differentiate itself so it can attract the retailers
and suppliers.

Before providing the solution, we will look into Bazaar’s competitive analysis as well as an
industry analysis.

Bazaar’s Competitive Analysis

SWOT Analysis:

Strengths:

· An innovative and technological solution to retailing issues in Pakistan.

· Mobile applications are user-friendly and have all important features.

· Their Supply chain management helps retailers and brands optimize their operations.

· They have formed strong partnerships with local suppliers and logistics providers.

Weaknesses:

· The geographic coverage of the mobile application is limited to mainly big cities.

· Their brand awareness is less than that of bigger players in the market.

4
Eltigani, N. “Bazaar, Pakistan B2B marketplace and digital ledger raises $30 million in country’s largest Series A”
(2021). Menabytes. https://www.menabytes.com/bazaar-series-a/
5
Mangi, F. “E-Commerce Startup Bazaar Scores Pakistan’s Second-Biggest Funding Round” (2022). Bloomberg.
https://www.bloomberg.com/news/articles/2022-03-15/dragoneer-tiger-global-lead-new-funding-for-pakistan-s-ba
zaar?leadSource=uverify%20wall
· Market share is lower than the big players.6

Opportunities:

· Expanding to other geographical locations within Pakistan.

· Creating a bigger network of supply chains and diversification in other categories.

· Growing operations due to increased internet penetration in Pakistan.

Threats:

· Barriers through regulations and operational challenges.

· Intense competition from bigger players.

· Disruptions in supply chain management due to political instability and fluctuation in

currency.

Digital presence:

Bazaar Technologies has a strong digital presence that is essential for an e-commerce company.
Here are the ways through which Bazaar reaches its customers:

1. Mobile application: A user-friendly and convenient mobile application that makes it easy
for their users to shop online. It includes features like order tracking, secure payments and
customer support.

2. Social media sites: Bazaar has a strong presence on its social media sites including
Facebook, Twitter, Instagram and LinkedIn. They use these platforms to engage with customers,
promote their products and services, and share updates regarding its services. 7

3. User Website: Bazaar has a basic visiting website that provides information about their
products and offerings, and information about their services.

4. Email marketing: Bazaar uses email marketing to inform its customers about the latest
deals, promotions, and new product launches and build brand loyalty.

Pricing Strategies:

6
(Bazaar Technologies Competitors & Alternatives, n.d.)(2021)

https://growjo.com/company/Bazaar_Technologies

7
https://www.linkedin.com/company/bazaartechnologies
Bazaar technologies uses dynamic pricing strategy which adjusts product prices according to
market rates and competitor prices. They make use of algorithms and machine learning to
automatically adjust prices which allows sellers to maximize revenues while staying
competitive.8

Some other forms of pricing strategies that Bazaar uses are Value-based pricing. Through Value
based pricing they help sellers determine the optimal price for their products using market trends,
consumer behavior and product features which allows sellers to price their product based on the
value they are providing to their customers.

Industry Analysis
JUGNU

Jugnu is a startup business which was founded in 2020, and operates in the grocery delivery
space. It collaborates with local grocery stores and provides customers a wide range and diverse
goods, such as fresh vegetables, meats, dairy products and basic home items. It is a Pakistani
e-commerce startup operating in Pakistan, and delivery is done within 24 hours. Jugnu’s delivery
fleet processes client orders once they are placed on the company’s website or mobile phone, and
then delivers the items to the customer’s houses.

Digital Presence:

One of the reasons for Jugnu and its growth is its online presence, as this is evident by its active
social media pages, website and mobile apps. Jugnu pro is very socially active, and keeps posting
on their Instagram page, website, on their goods, services and collaborations as well as industry
news and insights on their website and social media pages.

Jugno Pro:

October 24, 2022- Jugnu, launched Jugnu Pro; one of its kind, revolutionary procurement
solutions for enterprises. To diversify its business and compete in the market, Jugnu introduced
Jugnu Pro, a procurement solution for businesses. This platform offers diversity and a wide range
of items across categories on the Jugnu Pro platform in an effort to reduce cost, increase product
availability, delivery times and transaction transparency. It provides a one stop shop strategy to
lessen supply chain inefficiencies in the procurement process for offices and institutions.

The Jugnu’s launch of Jugnu Pro in the B2B procurement space has created competition and
created uncertainty and floodgates, as it imposes a challenge for Bazaar’s industrial vertical.
Jugnu Pro provides comprehensive procurement solutions for businesses, including offices,

8
(Paracha, 2021)
https://www.menabytes.com/bazaar-seed/
health care, educational institutions and restaurants. This will create competition in the
commercial market and promote transparency in pricing and transactions.

As Bazaar is the major competition of Jugnu, if Jugnu Pro is able to gain traction in the B2B
procurement space, the customers can be drawn away from Bazaar. However, on the flip side
Bazaar operates in the retail and fintech verticals which reduces its reliance on the industrial
vertical and increases its revenue.

RETAILO

Bazaar does not only face competition from Jugnu, but another strong competitor of Bazaar is
Retailo. Retailo is a B2B e-commerce startup founded in 2018 by Talha Ansari and Wahaj
Ahmed operating a marketplace platform that connects retailers to suppliers of consumer goods
such as grocery, personal care products and household items. The headquarters are located in
Karachi, Pakistan and the main operation takes place from there.

With passage of time, Retailo has been able to connect with a variety and variety of suppliers
which includes local manufacturers, distributors and global brands. Retailo offers a wide range of
products and there is diversity, including consumer goods, packaged foods, home essentials,
personal care items and has a strong presence in the province of Punjab and cities such as
Lahore, Islamabad and Rawalpindi.

The functioning of Retailo can be categorized as smooth, as every item is placed on the online
portal and the platform provides products directly to the suppliers. The startup offers value added
services such as credit facilities, logistics and inventory management, and data analytics to help
retailers improve their businesses.

DASTGYR

Dastgyr the third competitor of Bazaar is a startup business which was founded in 2020, by the
two founders Muhammad Owais Qureshi and Zohaib Ali. It was launched with the primary
purpose to solve inventory procurement for more than 2 million retailers across the country. It is
a B2B e-commerce marketplace that uses technology to connect retailers directly to
manufacturers and wholesalers with guaranteed next day delivery and in addition to this also
provide telephonic helpline support. Furthermore, Dastgyr platform partners include Coca-Cola,
Nestle and Reckitt.

Additionally, the platform’s retail services apply wholesale research to the lowest possible rates
on inventories over a wide variety of products. Product categories on the app include
fast-moving consumer goods, stationery, mobile accessories, and more.

TAJIR
Another such business which is on the high ranks these days and is a competitor of Bazaar is the
company of Tajir which was founded in 2018 by a brother duo, Babar Khan and Ismail Khan. It
is a B2B e-commerce marketplace for mom-and-pop stores. The main aim of Tajir is to make it
convenient for the mom-and-pop stores in the country to procure inventory for their stores
through its Urdu only app-based marketplace. It currently sells FMCG products including soft
drinks, biscuits, shampoo and food staples, i.e., rice and wheat. Tajir makes it easier to sell
directly to stores, helping them earn higher margins without any additional investment.

Bazaar Jugnu Retailo Tajir Dastgyr

Main Karachi, Lahore, Lahore Lahore, Lahore Lahore,

customer Islamabad, Islamabad Islamabad Karachi Karachi, and
base and Faisalabad and and Gujranwala
locations Rawalpindi Rawalpindi

Digital Mobile App Mobile App Mobile App Mobile App Mobile App
presence
Website Website Website Website Website

Instagram Instagram Instagram LinkedIn LinkedIn,

(Jugnu pro)
Linkedin Linkedin Facebook Facebook,
Linkedin
Twitter Twitter Twitter
Twitter

Main BAT, Vaseline, Doritos, Coca-Cola, LU, Bisconni,

Partners Coca Cola, Harpic, Shaan, Nestle, Mortein,
Reckitt, Tapal, Mortein, Nestle, Reckitt Dettol,
Shan, Dettol, Coca Cola, Pantene,
Habib Hilal Lipton and Lays Lipton, Tapal,
Tang Olpers,
Tarang
 Primary Industrial Industrial Retail Industrial Retail
Verticals
Retail Retail Retail

Fintech Fintech

Our Ideas for the Solution

We suggested three solutions to Bazaar Technologies for the problem they are facing. Out of
these three, they can pick one or more, as per their choice.

1. Stock Forecasting Feature

One way Bazaar Technologies can differentiate itself is by providing a unique service on their
app that no other competitor is providing. This will motivate the retailers to shift to Bazaar App
as they will be getting more and better services than through their current partners.

One such service is Stock Forecasting.

This idea was inspired by Linnworks, a UK company that is a one-stop shop for ecommerce
solutions, that provides this feature for their retailers. Bazaar can benefit greatly from it as well,
provided it is done properly.

How does it work?

Customers can make use of this feature by paying a fee.

Under the tab of Stock Forecasting, they will be asked to put in the previous consumption data
by asking the following:

● The product they want to forecast

● The last time they ordered it

● How many are left on this date

9

https://www.tajir.app/sellers
https://retailo.co/
https://dastgyr.com/
https://www.jugnu.pk/
https://www.jugnu.pk/giant-leap-in-e-commerce-industry-jugnu-launches-jugnu-pro-one-stop-procurement-soluti
ons-in-pakistan/
https://www.linkedin.com/company/retailo-app/
https://www.bazaartech.com/
 ● How many do they normally reorder

● How long after do they usually reorder

The app will then give a stock forecast for the number of days before their usual reorder date by
considering the consumption data given, seasonality and usual demand (found by research and
previous data available) for the product. If it is the first time the retailer is ordering the particular
product, they can use another product similar to it for the information.

There will then be an option to order the restock the amount given. The retailer will be given an
option to increase or decrease the amount as well.

To incentivize them to use this feature, they can be given a discount if they order after using the
Stock Forecasting feature.

Furthermore, there will be a feedback bar where they will be asked how accurate their experience
was with the forecasting, and if any, how much difference was there from the forecasted to the
actual. This will help Bazaar be more accurate the next time they use the forecasted option.

How does it benefit Bazaar?

Since no other competitor is providing this feature currently, it can be the differentiating factor
between the competitors - digital or traditional. Bazaar Technologies will be able to capture more
retailers as their app will basically provide ease in the inventory procurement process.

Furthermore, as they keep gaining data, they can use it to sell to the manufacturers who can use it
to determine their manufacturing costs and amount. The data can also help Bazaar come up with
better models and features.

Lastly, Bazaar will also earn more revenue as it will be charging an amount for this feature. The
amount will be based on how much time it takes to analyze and forecast the data. This can only
be decided by the Bazaar Technologies employees depending upon the resources used to create
this.

Challenges

There are some challenges with this idea that Bazaar can’t overlook.

Firstly, incorporating this feature may take a long time, from weeks to months, which will delay
their entrance in the other cities while the retailers’ relationships with their existing partners
strengthen. Bazaar may focus on other differentiation strategies (e.g. marketing strategies given
later in this report) while they focus on developing this one.

Secondly, there may be inaccuracy in the forecasts due to the lack of data for the specific city.
The way to solve this is make use of the research available and the research gained through the
other cities, and make use of them along with the consumption data. The retailers will be given
further options to add in their daily average consumption for the past few months to better
forecast it. The accuracy of the forecast will become better as more and more data is gained from
the customers using the feature.

Lastly, it may be time consuming for the retailer to forecast and order each product. However,
once they do it, the data will be restored and the next time, they can select the previous data and
get the forecasted value.

There remains a risk that the retailers may not be familiar with technology, however, according
to our Point of Contact, Bazaar does not face challenges anymore with getting retailers to shift to
digital. Therefore, we can safely assume that this risk is relatively low.

Furthermore, the process of developing and perfecting this feature may be time-consuming
which can delay their entrance into the cities they haven’t yet entered. The retailers may still be
unwilling to shift to Bazaar. However, this will increase their chances of gaining the customers as
they will be providing something new, despite the delay in entrance.

2. Entering the Retail-Tech

Bazaar Tech has been a leading retailer but combining fintech with the retail industry could be a
game changer. Bazaar has been lending inventory out to retailers to enable the retailer but letting
retailers to act as lenders on behalf of Bazaar to customers would enable retailers to use the
digital platform of Bazaar for easy cash lending and credit purchases benefit to their customers,
empowering their retailers.

How does it work?

The service would require Bazaar to authorize some retailers to lend out using cash from
cash-related services provided by Bazaar currently after careful inspection and checking of
supplier’s transactions which should be over and above the credit leverage given to them. The
options for the facility include:

1- Lending out cash upto Rs. 50,000/- (on easy installments with a fixed rate over the amount to
be repaid weekly or biweekly)

2- Udhar (credit) on purchases (no discounts applicable, paid weekly in easy installments)

This would allow the authorized retailer to use cash for lending cash to customers or make udhar
(borrowing/credit) purchases from them in easy installments. The cash with the retailer used for
the service would be one from the cash deposit/ utility bills payment or any other cash service
being provided by Bazaar currently. The retailer would lend out money or allow purchases in
easy installments using cash with a fixed rate over the credit facility ( without any discounts
being applicable on those purchases) while getting paid back weekly or biweekly.

Bazaar can also benefit suppliers through credit facilities. This would involve Bazaar checking
the credibility of the supplier in the market and determining the limit of credit they can make
available to suppliers and the time duration for repayment along with the percentage to be
charged on credit.

How does it benefit Bazaar?

Part of the fixed rate would be the share of the retailer while part of it will be the share of Bazaar.
The retailer will register the credit transaction with Bazaar allowing Bazaar to obtain more data
and generate a wider customer base for its product. The service would enable more retailers to
register with Bazaar as they can increase their service base without investing their money. These
empowered retailers would help with word-of-mouth marketing and building trust relations with
the app.

The supplier credit would allow Bazaar to earn profit from the amount received on top of the
principle.

Challenges

To audit the retailers for authorization can be time and money-consuming and still, there are
chances of fraud or inevitable bad debts. This would result in Bazaar losing out money as giving
credit is always risky and there is no guarantee for complete returns.

Secondly, Bazaar would need more funding to expand its credit facility along with more policies
around the credit terms. This would be time-consuming and would require extra effort and
workforce to make sure Bazaar is able to cover losses that might occur from the service.

For supplier credit, checking the credibility of each supplier would still not confirm the recovery
of the loan. The investment would also be higher to fund this idea.

3. Improved Customer Services

Retailers
Payment Plans

Along with a credit facility, Bazaar can offer the flexibility of paying in installments on large
orders. This option could be for those retailers who will use Bazaar App for their regular orders
and have a good payment history. This way Bazaar can also target the small retailers, in
particular, who cannot buy a lot of inventory at once and have difficulty in stocking up. The
payment schedule can be set up based on terms and conditions and it can range from 30 to 90
days depending upon the retailer’s relaibility.

Promotional Strategy

WELCOME OFFERS
To grow your customer base in a new city, you can attract new retailers by offering a Welcome
Offer by giving them a certain percentage off on first order with a maximum discount cap such
as 50% off on first order with a maximum discount of Rs. 2000.

LOYALTY PROGRAMS

To retain those customers, Bazaar can introduce a loyalty program for small retailers such as
providing free delivery for nth order after completing a certain number of orders e.g., free
delivery for 5th order after 4 consecutive orders from Bazaar App.

VOLUME DISCOUNT

You can attract your customers by offering them a buy more and save more option. Give them
volume discounts for bulk orders or small incentives for ordering more than before such as
reward points redeemable for discounts, free shipping, or any exclusive deals.

Referral Program

To expand in a new city, Bazaar can also offer small incentives to existing customers to refer new
customers for using Bazaar services. This is how they can build a network effect and acquire new
retailers on their platform.

Suppliers
Taking suppliers onboard is a challenging task especially when they have already locked terms of
trade with competitors. Here are a few marketing strategies Bazaar can use to differentiate
themselves from the competitors and entice potential suppliers.

Communicate Unique Value Proposition

It is important to communicate your unique selling point to the potential suppliers so that you
could make them aware of the benefits of your platform and persuade them to list their products
on your App. It may require extensive email marketing and direct outreaching or cold calling.
Emphasize the benefits and advantages of Bazaar app such as its user-friendly interface, efficient
order management and real time inventory tracking which can enable them to make more
informed business decisions.

Build Trust and Strong Relationship

Reach out to the suppliers in a new city in person or via online marketing to build trust. In person
meetings are recommended as they will allow the representative to explain the benefits and USP
and address any doubts and concerns the suppliers may have. Have your existing suppliers’
feedback recorded with you and show the potential suppliers their testimonials. You can also post
their feedback on your website and use them in your email marketing to target as many suppliers
as possible. In person meetings will not only allow you to come up with personalized solutions to
any specific needs they might have but also give a good impression to the suppliers. To negotiate
on important terms like credit periods, T&Cs, commission rates, in person meeting is a better
option as it will also help in building good relations with the suppliers.

Incentives and Promotions

You can attract suppliers as well with a WELCOME OFFER such as providing them with
marketing opportunities on your platform, No listing fees and taking reduced sales fee initially
for a limited time. For example if the policy is to take 20% sales fee, Bazaar can reduce it to 10%
with no product listing fees for an initial period of 1 month. This will prompt the suppliers to use
the app.

Challenges

In flexible payments, there could be a risk of default and to minimize it, you can take a small
percentage of the total cost as a down payment and divide the rest in small installments that a
retailer can pay back weekly, monthly or bimonthly. To ensure timely payments, Bazaar can offer
small incentives or discounts on their next orders.

When it comes to promotions, there could be a possibility that retailers and suppliers would be
attracted to use the app for one time to exploit the welcome offer but you can retain the
customers with the loyalty program shared above and suppliers with exceptional customer
services which will help build long term relationship with them.

In person meetings could be a challenge as they will require time and expertise to convince the
suppliers. For this, Bazaar can take a salesperson on board temporarily that can do the task at
hand efficiently.

Escrow Payment System

Bazaar can offer an escrow payment system to both retailers and suppliers to reduce the risk of
non-payment, non-delivery and any dispute between suppliers and retailers. This is how the
system will work; Any retailer will order the inventory from Bazaar App and will pay online
through any means they prefer like credit card or bank transfer etc., and the payment will be
saved in the escrow account and will not be transferred to the supplier until the inventory is
delivered and the online receipt is confirmed by the retailer. Retailers may take a few days to
inspect the goods received and confirm the satisfaction to Bazaar.

Challenges

There could be disputes between retailers and suppliers upon receiving damaged goods. Bazaar
can add a chat feature into their app where Bazaar could track the chat between retailer and
supplier in case of any dispute where the Retailer demands money back. Through their chat,
Bazaar can solve the dispute according to the available information such as chat history, photos
of damaged goods and other relevant information.
Conclusion
With the problem faced by Bazaar to establish their market in areas where they do not have first
movers advantage or they haven't accessed already, our suggestion was to introduce better
services for both retailers and suppliers and along with that to work on new features in app. Not
only this, venturing into the credit facility was another option that Bazaar hasn’t launched yet.

Although all these strategies ensure revenue and would make Bazaar more competitive and all
purpose, the plans are long term and would take time until the targeted audience becomes
accustomed to them, especially with inventory stocking as it would require training. Other than
this, the options require heavy investment and time especially with credit facilities, to ensure the
policies and protection.

As long as Bazaar believes in kaizen and keeps enhancing its services, it would be almost no
problem for Bazaar to move in the leftover cities or take its competitors down.