While the concept of online buying and selling is now not new in Pakistan, the idea of selling used but branded original items such as clothes, shoes and bags etc., is certainly novel.
In Pakistan such used articles are commonly called ‘Lunda’ items. Many cities in the country have “Lunda” bazars/ flea markets which are primarily visited by individuals from the lower middle income groups. Nonetheless sometimes well-off “brand conscious” individuals also sneak in such markets to get hold of ‘almost new’ shoes and bags of their choice which they otherwise fail to find at leading stores.
An online store khazanay.pk, launched by two friends based in the port city Karachi, is in business since November 2015. Usman and Fareed are both certified accountants who while working on an online Islamic insurance product got the idea of launching a Lunda bazar online and Ta-da khazanay.pk was born.
Usman said after completing their Accountancy Certification from the Association of Chartered Certified Accountants (ACCA), he worked for an accountancy firm for a year while Fareed joined a bank.
“Later we started working for an online Islamic insurance product,” Usman recalled saying, as they realized the vast space available to sell branded used items online, they immediately started to implement their idea.
They had visited light house market—hub of imported used item in Pakistan where all consignments of such items arrived first then supplied across the country—in Karachi on several occasions and had clear idea there was massive demand for branded used stuff.
“Selling used items online is a new idea in Pakistan but it is common in the western world as financially challenged individuals shop used items online,” Usman said.
Talking about the business model, Usman said they had maintained almost 1.5 million PKR inventory while daily orders were ranging between 20 to 40 parcels and monthly turnover was around half million rupees.
“It’s a start. We don’t know about the future but we are optimistic about our idea and concept of selling the used products online and the response is really good,” Usman said adding those aware of the brands and their prices do purchase Lunda items. “So the niche market exists and we are just channelizing it,” he went on to say.
About the product quality and inventory related matters, Usman says in the business of used items most products of a particular brand are just one or two so these are sold on a kind of first-come and first-purchase basis. “We categorize our products in three conditions: excellent (almost brand new), good (relatively used) and average (used and somewhat damaged after use),” he adds.
Usman says a particular product of any famous brand which usually costs PKR 10,000 to 12,000 is available for just PKR 1,500 to 2,500 in this business.