Better sales despite high prices

Published July 27, 2014
KARACHI: Women choosing artificial jewellery items in a shopping mall in Defence area on Saturday.—White Star
KARACHI: Women choosing artificial jewellery items in a shopping mall in Defence area on Saturday.—White Star

KARACHI: Eid shopping is gaining momentum as improved law and order situation has facilitated buyers to visit shopping centres.

In the absence of any credible official sales data of Eid-related items, market traders project overall sale of Rs80 billion in Karachi alone as against Rs60-70bn last year.

Traders said that like previous two to three years, a large number of people made pre-Ramazan shopping as they feared that the situation may aggravate in major cities as an after effect of the military operation in tribal areas.

All-Karachi Tajir Ittehad chairman Atiq Mir was of the view that Eid shopping may cross over Rs80 billion this year despite extreme poverty. A sizeable segment is so poor that they can’t even afford to buy a suit costing Rs800-1,200.

“I believe that 30 per cent people in Karachi, like labour class and those living below the poverty-line cannot afford to indulge in Eid shopping, unless someone else enables them to purchase new clothes,” he said.

Traders have not scaled down prices despite rupee’s gain against dollar which has made import of foreign items cheaper in the last few months.

High spending for Eidul Fitr appears surprising when cost of living has risen due to rise in food inflation, high fuel prices and high cost of bills. This has forced many people to buy sub-standard clothes and other used items.

According to Pakistan Bureau of Statistics (PBS), import bill of worn clothes, including shoes, shirts, jackets, woolen garments, trousers, socks, sweaters jumped to $182 million (457,600 tonnes) in 2013-2014 as compared to $146m (375,485 tonnes) in 2012-2013, showing a jump of 22pc in quantity and 25pc in value.

Traders said that price is not an issue on Eidul Fitr since markets offer costly to cheaper merchandise for different categories of buyers.

Unable to cover the cost, many parents approach friends and relatives for small loans to meet demands of their children. At the other end of the social scale, there are people who spend freely.

Small Traders of Artificial Jewellery and General Merchant Association President Saleem Saba said sale of artificial jewellery has risen by 25pc as compared to last year.

He said in fancy jewellery, the local industry holds 75pc market share as compared to 25pc of imported jewellery, mostly Indian.

In contrast, Chinese items, like hair-clips, hair-bands and other wearing accessories hold 75pc market share since these are not produced in the country.

“The import of these Chinese items for this Eid season is estimated at Rs10 billion,” he added. Some plastic cosmetics have also arrived from India.

A retailer of crockery items in Hyderi said that sales of crockery items (both imported and local) like glasses, plates, tea cups, etc soars three times higher during Ramazan than normal days.

Barring locally made mehndi, Chinese cosmetic items dominate the markets with 90pc share as females do not trust in locally-made products.

“Our sales double during Ramazan than normal days,” a cosmetic seller said.

Allawala Market President Mohammad Asif said that sale of readymade shalwar-kameez has jumped by 40pc than last year, especially in gents suits, while demand for unstitched suits has plunged.

“The overall tone of the market in terms of sale looks better than last year despite high prices of goods,” he said.

Published in Dawn, July 27th, 2014

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