Local clothing brands stuttering

At a time when local clothing brands are making names for their qualities and designs, the crippling economic crisis has hit their business hard with sales dropping sharply in the city’s shopping malls.

Talking to this correspondent, executives of different brands in different city malls claimed that their sales had declined as much as 50 per cent in the recent period.

The brand shops business people claimed that they were yet to overcome the Covid-19 impact and now the ongoing economic crises in the country was a major challenge for them to survive.

Though the situation is a bit better at the outlets of the capital it is very miserable out of the capital branches. Even, many of the brand shops are on the way to closure.

KM Ridwan Shifo, Sr Executive (Retail Operation) of Yellow at Jamuna Future Park, said their sales, neither on working days nor even during holidays, have been on the decline for months.

On an average they used to sell nearly Tk6 to Tk7 lakh per day which has downed by 15 to 20 percent, he adds.

This usually happens when consumers have less money and they try to save them. This is why consumers are buying on limited scale, explains Shifo.

Md Ataharul Islam Khan, Branch Manager of Top Ten Mart Ltd at Jamuna Future Park, said they were able to overcome the Covid-19 crises but the present economic crisis threw a big challenge for the brand shop business.

As the consumers have reduced shopping to save for the future their overall sales have witnessed 30 to 40 per cent drop, he added.

Md Shamim Sheikh, Senior Store Manager of Apex at Bashundhara City Shopping Complex, said they usually sell 1000 to 1200 items in a day while it goes up to 2500 during holidays. Their overall sales have plummeted by nearly 20 per cent now, he adds.

He says the overall situation outside the capital is even miserable where sale came down drastically.

Consumers are looking for cheap products to cope up with the living costs. This is why the demand for such products is increasing, he observed.

Consumers are cutting cost 

As the living cost of consumers has increased they have reduced their regular shopping. Now they are thinking twice before any purchase.

While visiting scores of brand shops in the capital including in Bashundhara City Shopping Complex and Jamuna Future Park this reporter found a thin crowd of shoppers.

Many salespersons were passing lazy time. A limited number of customers were found entering those shopping outlets.

Nusrat Farhana, a student of North South University, said earlier she used to come to the shopping mall with her friends two times a month. But, she is not doing so now.

“Currently, we hardly do any shopping as the living cost has gone up. The importance of shopping turned optional now,” she added.

Demand for products at discounted prices rising 

As the sale of brand shops has downed significantly, shop owners are focusing on discounts to keep the sale up. Consumers too are running after the products being sold at discounts to adjust income with the soaring living costs.

Mohammad Abir, a private service job holder, said he is eyeing products at discount to adjust with the increasing living cost. It has become very tough for me to buy expensive brand products as my income has not increased.

“Currently, I am trying to avoid shopping. In the last two months I haven’t bought anything as I am struggling to meet the living cost,” he added.

Chayan Biswas, Assistant Branch Manager of Gentle Park at Bashundhara City Shopping Complex, said consumers were buying products at discounted prices.

“We have also displayed different products with deep discounts to keep the sale up. The demand for such products is now rising,” he added.

Middle-income customers are on the wane

A significant number of middle and lower middle-income people are the customers of brand shops apart from well-off ones. Currently, only rich people are buying brand products while the number of others has come down sharply.

Tonmoy Khan, Branch Manager of Freeland, said like high income consumers they have a significant portion of lower- and middle-income consumers who love their brands due to quality.

Currently, most of the purchases are made by those people who have handsome income. The purchase from the middle-income consumers has gone down significantly. We had many regular customers but not all of them are coming now a day, he added.

Government decision a factor too

The government recent decision to shut down shops and markets after 8 pm is also affecting the overall brand shop business.

The people involved in brand businesses said consumers are used to doing shopping in the evening after the break of offices.

Mehedi Hasan, Branch Manager of Bata at Bashundhara City Shopping Complex, said 10 per cent of sales had come down due to early shut down of outlets.