Strategic

Approach to
Digikala
Start-up

By: Ramin Shabanpour

Types of Stores in
: Great
Iran
Bazar

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Types of Stores in
: Malls In-street
Iran
stores

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 Introductio
n
 Digikala is one of the most active e-commerce sites in Iran
. This website is the largest online store in Iran, with an
average daily view of more than 1.7 million visitors.

 The website was founded by brothers Hamid and Saeed

Mohammadi in 2006.

 It's interesting to note that so far 300,000 kinds of goods have been 
registered on the site of the Digikala. 

 In an interview in 2013, Mohammadi claimed that Digikala has more 
than 1 billion USD in sales daily, accounting for more than 85% of 
Iran's online retailing market. (around 300 purchase/sec)

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 Idea of
Formation!

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 Services and
Feature
Items that Digikala sells in
its
o
store: o Game consoles
Mobile phones
o Tablets o Watches
o Laptops o Home Appliances
o Computers o Musical Instruments
o Digital cameras o Toys and ornaments
o Office machines o Apparel
o Automobiles o Books
o Cosmetics o Perfumes
o o Jewelry
Sunglasses
�

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Services and
Feature
 Best Price Guaranteed

 Guarantee of good originality

 Original warranty 

 7 days return guarantee

 Digi Bon
 Special offer

 User comment

 Review of products

 Sending methods (choose time of delivery)

 Payment methods (Internet payment, cash)

 Products comparison (up to 4)

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 Missions and Visions
Missions:

 Producing and Presenting online shopping services

 Raising awareness of customers

 Providing opportunity for buyers from all over the country

 Providing a safe and secure platform of customer electronics

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 Missions and Visions
Visions:
 Setting up a new digital order processing center that boosts its ability to 

expand its business.

 Launching a marketplace platform

 Expanding the business to neighborhood countries (Azerbaijan, Iraq and 

Afghanistan).

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 Digikala corp. parameters vs. main internal
competitor
Year 2007 2013 2014 2015 2016 2017

No. of  5 200 700 1000 2000 2700

personnel

  Digikala Bamilo
Ave monthly Traffic (Million) 14 6.5
Bounce rate* 26% 63%
Category of focus Consumer Electronics Apparel
Services - cash on delivery -Free Delivery
- 7 days return policy - Cash on Delivery
- Guarantee - 14 days return policy
- Express delivery - Guarantee
- Express delivery
Customer satisfaction with  Higher Lower
services
Products varieties Lower Higher
Corporate strategy is based on Customer satisfaction Lower prices
Launched  2007 2014

* Bounce rate represents the percentage of visitors who enter the site and then leave rather than continuing 
to view other pages within the same site 

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What’s big
impact?

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 Some slogans

Exploring, choosing and 
online shopping

Smarter purchase is more up-to-date

Smarter purchase is faster

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SWOT Analysis

Strength Weekness

SWOT

Opportunit
Threat
y

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 Strength

 Brand credibility and reputation
 Loyal customers
 Beautifully-designed website
 Visual and textual reviews and user feedback
 A meaningful name, a beautiful logo with a slogan 
under the logo.
 Possibility to send gifts to people with free 
wrapping
 Established position as market leader

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 Weakness

 The incompleteness of the product category
 Lack of inventory for many goods at many times spoil 
customers’ right to choose, which reflects the low speed 
of replenishing goods.
 The impossibility of sending free orders with high prices 
to cities.
 In products other than the special offer in the mobile 
category, there is no competitive advantage in the price 
similar to the past

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 Opportunity

 Inauguration of customer service offices and 
warehouses in more cities (now 22 cities except 
Tehran) 
 Make it possible to sell in installment of some orders 
to specific people, such as students or young married 
couples.
 Entering the market for products like clothing that are 
very popular and selling branded products such as 
fashion and clothing (Women visit Bamilo more than 
Digikala)

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 Threat

 Other competitors (Bamilo use extraordinary 

discount)

 Replacing the C2C online shopping (Esam.ir)

 Internet shops that are active in the cities will 

limit the market share of the Digikala market in 

that city and its subsidiary towns.

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Thanks!

Thank