Cainiao Partners with Daraz to Automate Two Smart Distribution Centres in Pakistan to Enhance E-Commerce Logistics Capabilities in South Asia

• The two facilities are located in Karachi and Lahore and it will be one of the most technologically advanced logistics facilities in South Asia
• This is Cainiao's first deeply integrated distribution centre network in the region

HANGZHOU, CHINA - Media OutReach - 30 August 2022 - Cainiao Network, ("Cainiao"), the logistics arm of Alibaba Group, and Daraz, South Asia's leading eCommerce platform, today announced upcoming plans to automate Daraz's two smart distribution centres in Pakistan for Daraz, a leading eCommerce platform in South Asia.

The distribution centres will be equipped with innovative smart technologies, such as an automatic assembly line and smart distribution set-up. It will utilise Cainiao's proprietary solutions, including e-PLC,control algorithm,WCS, to ensure operational quality and stability.

The project marks a new milestone for Cainiao as its first deeply integrated network of distribution centres in South Asia. To date, Cainiao has built hundreds of automated distribution centres of varying scales in the Chinese mainland, and 10 smart distribution hubs across Europe, Asia, and America.

"As Daraz's official logistics partner, we are committed to growing its logistics capabilities in the region. By extending our technology to the logistics ecosystem in South Asia and beyond, we hope to also raise awareness of our smart logistics offerings and technology applications to help the industry and our overseas partners close the gap in digitalisation, become more competitive, and meet the growing demand for eCommerce," said Dr. Ding Hongwei, General Manager, Cainiao Technology.

South Asia is one of the most exciting regions with access to over 500 million people, and untapped growth potential. Strong consumption momentum in South Asia, an emerging market for eCommerce, has spurred the rapid growth of the business. Over the past two years, the business grew by 85 percent in GMV, with revenue surges during the 11.11 global shopping festival.

The shifting consumer behaviour toward online shopping represents immense opportunities for eCommerce merchants in the region. By modernising logistics distribution, Cainiao will not only support Daraz's business growth, but will also relieve the immense logistics pressure faced by the industry and usher in a new age of smart logistics in the region.

"Strengthening our logistics infrastructure and technology is critical in scaling our operations in Pakistan. By tapping on smart technology, Daraz is able to enhance our customers' experience by providing more efficient logistics distribution. We look forward to continuing our partnership with Cainiao to grow our logistics capabilities," said Mr Bjarke Mikkelsen, Daraz Group Chief Executive Officer and Founder.

"This sort of technology is coming to Pakistan for the first time – the partnership with Cainiao will bring immense knowledge sharing for the industry and help Pakistan in its efforts towards digitization. Along with that, this automation will increase Daraz's sorting capacity by over 4x and decrease manual errors by over 90%. We are very excited to welcome Cainiao and look forward to working with them to bring global best-in-class technology and logistics solution to Pakistan, ." said Mr Ahmed Tanveer, Chief Operating Officer for Daraz Pakistan

Cainiao is intensifying its actions toward enabling a resilient and robust global logistics and supply chain ecosystem. Having succeeded in digitising its supply chain processes, it is now helping the industry accelerate warehouse digitalisation with its smart warehouse technology. Last year, ahead of the 11.11 global shopping festival, Cainiao collaborated with Flash Express, one of the leading logistics companies in Thailand, to build the largest smart warehouse in Southeast Asia. Utilising Cainiao's technology, Flash Express gained a differentiating competitive advantage in a saturated logistics market.

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About Cainiao Network

Founded in 2013, Cainiao Network ("Cainiao") is a smart logistics company and the logistics arm of Alibaba Group. As part of its commitment to create customer value, it adopts a collaborative approach to logistics that aims to improve efficiency and customer experience for all players along the supply chain. It carries forward Alibaba's mission of making it easy to do business anywhere by aiming to deliver anywhere in China within 24 hours, and across the globe within 72 hours.

About Daraz Group

Founded in 2015, Daraz is South Asia's leading e-commerce platform in Pakistan, Bangladesh, Sri Lanka, Nepal and Myanmar. It empowers more than 200,000 active sellers with world-class marketplace technology to reach the fast-growing consumer class in a region of 500 million people. Through Daraz Express and Daraz Pay, it operates the most efficient and digitalised logistics and payments infrastructure in its markets. Daraz's vision is to be a champion of South Asia serving 100 million customers and businesses by 2030.

For more information, please visit www.daraz.com.