09 November 2004	Tuesday	25 Ramazan 1425

KARACHI, Nov 8: Like last year, buyers have flocked the markets in a larger number this year too, thus pushing up sales of various categories of garments and other items, both local and imported, as compared to the previous year.

Whereas some market players say that sales in terms of value has been showing improving trend from last year because of price hike by the producers but sales in terms of quantity have either been low or same in comparison to last Eid.

City popular bazaars like Clifton, Tariq Road, Saddar, Zaibunnisa Street, Bohri Bazar, Hydery, Jama Cloth, Anarkali, Zamzama, Park Towers, etc., are giving a festive look these as Eid shopping is reaching its climax.

The last week is considered as a bonanza for shopkeepers as buyers are bound to make heavy purchases for their children, near and dear ones.

Like yesteryears, it is hard to predict a specific percentage of the rising sales because there is no documentation and statistics available in the markets neither with the government nor with the market forces. However, rough estimates by manufacturers and various outlet owners indicate that sales have improved by 15-30 per cent as compared to last year.

Like last year, improving liquidity position of consumers and positive economic outlook continue to be the key feature this year in gauging the buyers' passion for the products coupled with demand flare up of products.

Director Sales, Bonanza Garments Industries, Hanif Bilwani said that overall sales (excluding children garments) have shown an improvement of 15-20 per cent this year as of last year's Eid, while a 30-40 per cent increase has been noticed in the sales of children garments.

"Our sales have been much better in Tariq Road and Bahadurabad this year as compared to Clifton," he said attributing the higher sales to economic prosperity and improving liquidity position of the buyers.

He did not see any potential threat to the financial viability of his company owing to heavy influx of Chinese items especially in children garments. "Chinese products arrival is not making any difference. People are aware that these products lack durability and quality," Hanif said.

He, however, said that Chinese sweaters have captured 90 per cent market share in contrast to 40 per cent market share, being enjoyed by Chinese ladies garments and five to 10 per cent gents garments and fabrics.

Manager Marketing, Cambridge Garments, Owais Iqbal said that sales in terms of volumes have increased by 15-20 per cent from last year's Eid but number of quantities sold have dropped this year, which means lower sales in terms of quantity.

"The increase in price of fabric and clothes by 10-15 per cent in the last one year is the main reason of low sales in terms of quantity. However, profit wise we are achieving targets," he said.

"Our products cater to a particular segment of the society. They are coming as usual," he said adding that the upper middle income group, which came last year, is not coming in a big way due to increase of 25 per cent in price of readymade garments.

He recalled that last year customers had come out in the market and made heavy purchases. This year, the buyers lack in numbers.

Technical Director of Iqbal Silk Mills, Anwar Aziz said that sale of blended shalwar kamiz has gone up by 20 per cent while sales of suitings has declined by 30 per cent this year as compared to last year Eid.

He said buyers are very much active in the market in buying cheap fabrics and clothes whose demand are picking up. "I think the concept of quality in Pakistan is dying," he said.

He said influx of smuggled and misdeclared Chinese fabrics have rendered local products uncompetitive, thus affecting sales of local producers. "If overall sales of our products are taken then it has declined by 10-12 per cent from last year," Anwar said adding that smuggled items are slowly eating the local industry.

He said local producers of fabrics and clothes are facing problems in competing with smuggled goods as raw material prices have gone up by 20-22 per cent in the last one year.

He said that 60-70 per cent of market has been captured by Chinese and Korean suitings as against 40 per cent share in shirting, 99 per cent in children garments and 10-15 per cent in shalwar kamiz fabrics.

When asked to identify reasons of rising buying power of consumers, he said he could not understand the real reasons from where consumers are getting the liquidity in times of rising prices of essential items and inflated utility bills. "I think that the number of employed people in a home has increased otherwise there is no explanation for increasing number of buyers and sales," he said.

Owner of Lahore Shoes in Saddar, Mashkoor Ahmed said that sale of footwear has maintained the same pace as of last year. He said that trend is now changing and people are realising that Chinese shoes lack quality. He said many big footwear shops are selling Chinese shoes of high quality.

He said a section of the society has been responsible in giving a bad name to Chinese shoes by bringing low quality shoes from China in order to make heavy profits.

The State Bank's 2003-2004 annual report says that China has almost doubled its share in Pakistan's total imports during a short period of last five years and is now fourth largest import source after Saudi Arabia, US and Dubai.

The Bank has mentioned that TV sets, ACs, refrigerators, motorcycles, footwear outer sole leather, railways, rubber, insecticides, textile materials, chemicals and pharmaceuticals have found their way into Pakistan.

The report does not include the figures relating to garment imports from China, which include children garments, gents and ladies suiting, finished footwear, toys, stationary items, etc., in which some items have grabbed 99 per cent market share. It means that these products are either being smuggled or finding their way through under-invoicing and misdeclaration.