THE changing lifestyle of the people has left a mark on the way Eid shopping is done today. The changing consumer preference is reflected in the composition of the ‘Eid economy’ that now better serves the interests of service providers, often at the cost of manufacturers.

Within manufacturing, the share of the small-scale informal sector — which deals in replicas of high-end products in almost all consumer goods categories, from readymade dress assembles to footwear to food to cosmetics and jewellery — has grown disproportionately.

Eid is said to be the single biggest occasion that kick-starts a cycle of wealth redistribution when enormous transfers from the rich to the poor take place in a country with a lopsided asset base, and where the tax regime has failed to serve the goal of a more equitable society.

“It is strange to see the combination of belief-driven demand and the market filling in for the government to act in the interest of the majority,” commented an economist. “The market plays neutral and liberally rewards the enterprising, irrespective of social standing, in this situation of unusual demand surge”.

It is estimated that as much as Rs400bn of the total Rs800bn spending on the occasion either directly or indirectly reaches the self-employed across the country.

Of the projected Rs800bn consumer spending pie during the festival, bigger portions are picked up by retailers, transporters, designers, groomers and entertainment providers. The share of textiles and footwear — which used to constitute as much as about 70pc of the total ‘Eid budget’ — has depleted over the years to an estimated 50pc, if not less. Food and transport, which constituted about 15pc each earlier, have gained ground.

Within the food category, spending on confectionary and bakery items has increased tremendously, particularly amongst social classes with deeper pockets. Eating out, which used to be looked down upon in the past, has become popular across all classes, and food outlets are doing roaring business. Caterers and event managers have grown in size and multiplied in numbers, but the pace of demand growth exceeds supply.

Market surveys reported in the local media this year indicate that locals are reclaiming the ground lost to imported items, particularly in children’s wear.

The money thus spent is presumably circulating within Pakistan more than ever before. The rising share of the informal sector means that the benefits of the market surge do trickle down to millions working in makeshift shops and homes in townships all over the country.

Shabbar Zaidi, former interim finance minister of Sindh, found the question of who earns what from the Eid spending interesting. “It is absolutely amazing to watch the popping up of new businesses carving space for themselves in the expanding domestic market. People are now more self-aware and spend more liberally on grooming, gifts and entertainment.”

He found the Rs800bn assessment of the Eid economy not only credible, but also indicative of the real size of Pakistan’s economy, which he suspected to be bigger than the size projected in official data.

“There is not a figment of doubt in my mind that the composition of the ‘Eid budget’ has changed. According to my assessment, the share of clothing and footwear is now 30pc, transport 15pc, Eidi 15pc, confectionaries 15pc, grooming 15pc and entertainment 10pc.

“Besides, the growing size of the Eid market shows that people’s buying power has increased. How? I am not quite sure about that,” he added.

“It is true that the Khadis, Sheeps, Koels, Niralas, Rehmat-e-Shereens, Lals, Sohnys, Habitts, Ideas, Gloria Jeans, Kolachis, BarB.Q. Tonights, Nabilas and Neelos of our times mint crazy money at Eid, but the benefits of this spur also reach lowest of the low in the society,” commented a banker with political ambitions.

“People who make cheap accessories, beauty products, toys, chappals etc. do roaring business. Beauty parlours in the deepest corners of low-income localities and smallest of towns are making money.

“Forget high-end restaurants; ask women serving food orders from home, barbers, choori walis roaming on the streets, massage-givers, pottery makers, hawkers, push cart vendors, and bun kebab and candy walas, and they will tell you that they earn as much as 40 --50pc of their annual income during Eid,” he made a case.

“From tangas to Qingqi to rickshaws and taxis to car, bus, railway and airline companies, all fetch high premiums in their businesses. As spending is spread across all social classes, the informal sector’s products — accounting for about 60pc of the budget — may be claiming no less than Rs400bn, i.e. half, of the total spending,” he asserted.

Many people cited unprecedented rush at Cineplex and other multiplex cinemas, as well as at clubs and theatres, parks and museums, beaches and hill stations and other picnic points as proof that a sizeable amount of the family budget is allocated for entertainment.

Published in Dawn, Aug 4th, 2014