Pickaboo the Potential Next Unicorn of Bangladesh
Plans on leveraging its omnichannel strategy – binding online and offline experiences for consumers
Pickaboo, a platform that has been selling mobiles and gadgets since 2016, has a clear path to becoming a unicorn – a billion-dollar company. With its omnichannel strategy, the platform has been blurring the lines between online and offline retail in the local smartphone and gadget segment, estimated to be a $2 billion market in the electronics category.
The CEO of Pickaboo, Morin Talukder, says that the platform has continuously been strategizing customer-centric services unique to the market, such as its three-hour delivery facility. An omnichannel strategy helps businesses create a seamless experience for customers across all the channels through which it sells, encompassing both online and offline touchpoints of a brand.
Pickaboo has made significant changes to its business model in the past three years to scale up and build a sustainable differentiation to break out in the market. The platform has positioned itself as an omnichannel mobile and gadget platform, with a focus on customer-based initiatives. Building an offline retail operation across multiple cities has landed Pickaboo new sales channels, extended brand awareness in both ways, expanded its online customer base, and built a network of small businesses.
The online store offers a wide range of products in categories such as electronics, household appliances, smartphones, cameras, computers, accessories, fashion, health equipment, and makeup. Pickaboo’s goal is to blur the line between offline and online, providing customers with convenience, good offers, quality products, and little to no waiting time.
Pickaboo is not the only omnichannel mobile and gadget platform in Bangladesh that is using this strategy for expansion. According to the e-Commerce Association of Bangladesh (e-CAB) Vice-President Shahab Uddin Shipon, Gadget & Gear (G&G) and Pickaboo are likely the largest omnichannel mobile and gadget platforms in Bangladesh, although Pickaboo may have a lower market share. However, Shipon believes that almost any local market has the potential to become an unicorn, given the size of the local market that remains untapped. Strategic innovation is crucial in overcoming barriers to tap into the full market and ensure the sustainability of such business models.
The mobile market alone is a huge market in Bangladesh, growing at a rate of 10% annually. The market has ample room for growth and is far from being a mature market. Current market data suggests that close to 700,000 smartphones are sold in Bangladesh every month, and there is still significant room for growth in the total available market (TAM).
Challenges
According to market data, the penetration rate of smartphones in Bangladesh is currently 40%, but it is predicted to reach 70% in the coming years due to the increasing number of feature phone users converting to smartphones. In this highly competitive mobile and gadget market, Pickaboo faces tough competition from both big players like Daraz and a large number of smaller players who sell a vast number of products both online and offline.
Despite the challenges, Pickaboo has seen organic growth due to recent initiatives, but the platform realizes that the next phase of growth will require significant effort. However, Pickaboo’s advantage lies in its experience and deep understanding of the mobile vertical, as it has been operating for over six years, unlike many other platforms that come and go. Additionally, the platform has a strong partnership with Edison Group, a dominant player in the mobile market and the owner of the Symphony brand, which has faced increased competition in recent years, losing its position as the largest and fastest-growing mobile handset brand in Bangladesh.
Pickaboo recognizes that it needs to develop a sustainable differentiation to stand out in this competitive market. To achieve this, the platform has been implementing customer-centric initiatives, such as its 3-hour delivery service, and building an offline retail operation to complement its online presence. By leveraging an omnichannel strategy and focusing on customer needs, Pickaboo aims to blur the line between offline and online retail and build a network of small businesses to support its growth.
Pickaboo has utilized a successful model of disruptive innovation to bring mobile phones to even the most remote areas of Bangladesh. Thanks to its partnership with the Edison Group, Pickaboo has a deep understanding of the mobile phone market, including pricing, distribution, and growth.
Although ecommerce has grown significantly in the last two years, many customers still prefer offline shopping, as trust can be difficult to establish in the online space. By expanding its presence into offline retail, Pickaboo can reach customers who are hesitant to shop online and work on converting them to become online customers.
Furthermore, integrating offline and online channels allows Pickaboo to create a superior data strategy that benefits both operations. This can include using offline shops as potential distribution hubs or pick-up locations for online orders.
Overall, Pickaboo has been making strategic moves to differentiate itself in a competitive market and believes that its omnichannel approach, including a combination of online and offline channels, will be key to achieving further growth.
