BriefCase'20 Case, 1st Round

1. SPONSORED BY
1st ROUND
CASE & INSTRUCTIONS

2. About Daraz
Objective
Daraz is the leading online marketplace in South Asia, empowering tens of thousands of sellers to
connect with millions of customers. Daraz provides immediate and easy access to 10 million
products in more than 100+ categories and delivers more than 2 million packages every month to
all corners of its countries. Daraz is a mall, a marketplace and a community for its customers. It is
also a university for entrepreneurs, and every month it educates more than 5,000 new sellers on
e-commerce operations. To overcome the logistics challenge in its markets, Daraz has built its
own logistics company specifically designed for e-commerce operations - Daraz Express
(known as DEX) - to raise the standards for the industry. Daraz is also helping existing and new
logistics providers digitize. In 2018, Daraz was acquired by Alibaba Group, and is proud to carry
its part of the mission to 'make it easy to do business anywhere in the era of the digital economy'.
As part of the Alibaba ecosystem, Daraz is leveraging Alibaba’s global leadership and
experience in technology, online commerce, mobile payments and logistics to drive growth in its
markets.
You have assumed the role of Strategy Manager at Drawer.com.bd
Your project is to design a roadmap for the development of a new business unit – Drawer Private
Label. The project will be focused on creating product brand/brands owned by Drawer. The
business potential of private label for Drawer is huge in this field. Amazon does $2.3 Billion yearly
from its own brands, or about 1% of its total yearly revenue and total private label revenue for the
retailers in the US were about $128.6 billion in 2018.
The top management at Drawer wants this new business unit to be setup in the next 30 days. In
your proposal for the new business units, you are required to cover all business aspects including
(but not limited to) commercial, operations, marketing and supply chain. The budget for the new
project is entirely dependent on the strategic proposal and/or feasibility analysis and how
convinced the management feels about your strategic plan. However, please note any budget
over $200,000 will be vetted very aggressively.
Context
For every retailer across the globe online or otherwise, the primary source of income is the margins
earned from sales. To achieve this goal, they setup processes, build facilities and hire specialized
people. This helps them to gather valuable customer insight over customer behavior and product
performance across categories. Since the retail margin is very low, it is only logical for these
brands to manufacture their own products and sell through their specialized channels to earn a
higher margin on the sales.

3. This is even truer for an ecommerce platform, since they have a more objective and specific source
of learning about customer behavior from their own platform data. The right sales channel,
customer insight, and good product at competitive prices make a very good combination for profit
booster. The negative side is since they are specialized retailers and not manufacturers, many a
times they tend to grossly misunderstand the industry and its practices.
Currently Drawer operates in Bangladesh and no Ecommerce platform in this market has tried
their own label. Even the offline retail doesn’t have a sizeable data and example to work from.
There are many ways you can implement the private label project for Drawer. Please consider the
following options for the private label you will be creating,
For you to launch private label, you would need to keep in mind that this is going to be a primarily
online brand. The brand may carry the association with Drawer or may not disclose the
association. The commercial revenue of Drawer for the last year is provided below,
Exercise
• Build a manufacturing facility and directly produce your products, this provides with the highest
profit margins but you need to look after end to end all supply chain and regulatory issues.
• Have a manufacturing partner who will produce certain quantities for you, here you only look
after the forward supply chain, but lose some of the margin to the manufacturer.
• Have a sourcing partner to maintain the manufacturer and the regulatory issues and import
side (if required). Here you need to leave out higher margin.
• You can also adopt a white label policy where you buy finished goods and relabel them with
your brand name.
Categories Revenue
Orders
generated
Items sold
Average
Item
price
Page views
Bags and Travel $ 3,732,860
524,930 576,182
$ 6 8,748,833
Bedding & Bath $ 980,823
97,558 116,528
$ 8 1,625,967
Cameras $ 4,695,789
279,738 304,564
$ 15 4,662,300
Computers & Laptops $ 7,207,920
366,986 425,254
$ 17 6,116,433
Digital Goods $ 5,136,936
1,235,396 1,341,684
$ 4 20,589,933
Fashion $ 16,683,279
2,215,186 2,740,776
$ 6 36,919,767
Furniture & Décor $ 6,762,864
398,768 516,454
$ 13 6,646,133
Groceries $ 9,459,418
1,163,916 2,761,712
$ 3 19,398,600
Health & Beauty $ 10,076,452
1,595,042 2,164,658
$ 5 26,584,033
Home Appliances $ 7,735,158
215,262 242,896
$ 32 3,587,700

4. Groceries $ 9,459,418
1,163,916 2,761,712
$ 3 19,398,600
Health & Beauty $ 10,076,452
1,595,042 2,164,658
$ 5 26,584,033
Home Appliances $ 7,735,158
215,262 242,896
$ 32 3,587,700
Kitchen & Dining $ 1,432,764
219,448 273,632
$ 5 3,657,467
Laundry & Cleaning $ 384,768
45,422 56,644
$ 7 757,033
Livestock $ 83,000
100 100
$
830
1,667
Media, Music & Books $ 905,371
62,848 86,352
$ 10 1,047,467
Mobiles & Tablets $ 69,329,729
1,114,736 1,372,232
$ 51 18,578,933
Mother & Baby $ 4,070,604
296,076 411,964
$ 10 4,934,600
Motors $ 17,164,684
197,668 235,514
$ 73 3,294,467
Pet Supplies $ 446,923
43,864 59,140
$ 8 731,067
Special Digital Products $ 732,637
255,100 255,100
$ 3 4,251,667
Sports & Outdoors $ 5,520,658
325,382 368,438
$ 15 5,423,033
Stationery & Cra� $ 2,246,673
201,256 1,674,476
$ 1 3,354,267
Tools, DIY & Outdoor $ 3,233,717
424,046 567,590
$ 6 7,067,433
Toys & Games $ 2,483,707
229,178 278,590
$ 9 3,819,633
TV, Audio / Video,
Gaming & Wearables
$ 18,113,766
1,563,742 1,785,198
$ 10 26,062,367
Watches Sunglasses
Jewellery
$ 6,702,103
1,065,702 1,195,364
$ 6 17,761,700
Grand Total $ 205,325,458
14,137,504 19,811,218
$ 10 235,625,067
Groceries $ 9,459,418
1,163,916 2,761,712
$ 3 19,398,600
Health & Beauty $ 10,076,452
1,595,042 2,164,658
$ 5 26,584,033
Home Appliances $ 7,735,158
215,262 242,896
$ 32 3,587,700
Kitchen & Dining $ 1,432,764
219,448 273,632
$ 5 3,657,467
Laundry & Cleaning $ 384,768
45,422 56,644
$ 7 757,033
Livestock $ 83,000
100 100
$
830
1,667
Media, Music & Books $ 905,371
62,848 86,352
$ 10 1,047,467
Mobiles & Tablets $ 69,329,729
1,114,736 1,372,232
$ 51 18,578,933
Mother & Baby $ 4,070,604
296,076 411,964
$ 10 4,934,600
Motors $ 17,164,684
197,668 235,514
$ 73 3,294,467
Pet Supplies $ 446,923
43,864 59,140
$ 8 731,067
Special Digital Products $ 732,637
255,100 255,100
$ 3 4,251,667
Sports & Outdoors $ 5,520,658
325,382 368,438
$ 15 5,423,033
Stationery & Cra� $ 2,246,673
201,256 1,674,476
$ 1 3,354,267
Tools, DIY & Outdoor $ 3,233,717
424,046 567,590
$ 6 7,067,433
Toys & Games $ 2,483,707
229,178 278,590
$ 9 3,819,633
TV, Audio / Video,
Gaming & Wearables
$ 18,113,766
1,563,742 1,785,198
$ 10 26,062,367
Watches Sunglasses
Jewellery
$ 6,702,103
1,065,702 1,195,364
$ 6 17,761,700
Grand Total $ 205,325,458
14,137,504 19,811,218
$ 10 235,625,067

5. A simplified cost structure of the sourcing options are provided below,
Qustions:
1. Which category of products do you want your brand to cater to first? Please justify.
2. What is the name of your brand? Write your tagline. Why do you think it’s a good fit for
your brand?
3. What will be your product sourcing strategy? Please justify.
4. Please draw up a pricing strategy for your products.
5. Write 4 key USPs your products must have, so that you can differentiate them from
competition. Justify using your target customer base’s purchasing behavior.
6. What is your targeted sales volume in a year? Why?
7. Do you think it will be a good move to also create an offline sales channel for the brand?
Please justify.
Souring options
Fixed
Cost
Added cost on
product
MoQ (yearly)
Finance
cost
Drawer's
RRR
Self-Manufacturing $400,000 N/A
1,200,000
2%
15%
Manufacturing
partner
N/A 7%
960,000
2%
15%
Sourcing partner N/A 12%
24,000
2%
15%
White label N/A 9%
60,000
2%
15%

6. 1. Participants are requested to read the case carefully and provide a proper and justified
solution.
2. There is no specific slide limit. The Official Logo of BriefCase & Daraz should be used in any
corner of the first slide.
3. Both of the files (PPT/PPTX & PDF) should be named in the following manner:
Team name_Round 1_BriefCase 2.0 For example: Team X_Round 1_BriefCase 2.0
4. The solution has to be submitted in PPT or PPTX format. Along with this, you also have to
submit your PPT/PPTX in PDF format in this following link:
https://forms.gle/DMN8cFn4FYVL44Z59
The files have to submitted as a ZIP format
5. Mentioning the name of team members anywhere in the solution is prohibited and any slides
containing team members' names will be disqualified.
6. The deadline for submission is 11:59 PM, Saturday, June 27, 2020
7. Any teams violating the rules or missing the deadline will be penalized.
8. EWUBC reserves the right to change any provisions and regulation of the competition
without prior notification.
INSTRUCTIONS

7. JUDGEMENT CRITERIA
SL No. Area Marks
1 Solutions 70
2 Feasibility 10
3 Slides 15
4 Deadline Management 5