A silent but widespread chaos engulfs the spectacle business in Dhaka, disrupting the clear vision of thousands as prices of frames and lenses soar three to fourfold creating a significant disparity between wholesale and retail markets.
The market dynamics, largely concealed from the consumer eye, reveal a complex interplay between wholesale and retail prices, import fluctuations, and a lack of regulatory oversight.
Wholesale versus retail: A disconcerting disparity
Venturing into the spectacle wholesale market, where the average pair of glasses commands a price of Tk 400-Tk 500, one is confronted with a stark reality when perusing retail markets. Here, the same glasses are adorned with a price tag ranging from Tk 1,000 to Tk 1,500, a disparity that sends ripples through the industry.
The vast spectrum of eyeglass frames, numbering around 20,000, and diverse glass types, exceeding 100, contribute to the price variations. The wholesale-retail price difference, however, is alarming, with retailers enjoying profit margins soaring up to three times the wholesale price.
Turmoil at Patuatuli wholesale market
Patuatuli, the country's largest wholesale market, exposes the intricacies of the spectacle trade. A normal bifocal spectacle glass, wholesaling at Tk 55, is retailed at Tk 300-Tk 350. The pricing surge continues with unifocal spectacle glass pairs, wholesaling at Tk 110, commanding retail prices as high as Tk 600-Tk 800. The cost further escalates with power increases, where a Tk 10 rise accompanies a 0.25 power increase in wholesale prices.
This predominantly import-dependent industry turns unstable and the wholesalers, who import frames and glass from China, Italy, South Korea, and India, cite the volatility of the dollar rate as a significant factor. The price hinges on the letter of credit (LC) opening rate, dancing to the tune of dollar rate fluctuations.
Despite the import turmoil, statistics indicate a steady increase in the import of spectacle frames, glass, and accessories until FY20, rising from $4,23,000 in FY18 to $8,72,000 in FY22, as per Bangladesh Bank data. The import peaked at $13,73,000 in FY20 but dwindled to $3,10,000 in FY21 amid the Covid-19 pandemic.
Weird retail pricing landscape
The retail pricing landscape paints a varied picture in different areas of Dhaka and other parts of the country. A complete spectacle with glass and frame may cost Tk 800 in Mirpur, Tk 1,600 in Rampura, and Tk 1,000 in New Market, revealing an unsettling gap between retailers and consumers.
A Mirpur-based optical store offers a range of eyeglasses at varying price levels, including eyewear, sunglasses, frames, and more. Its owner explained, "Our products cater to diverse customers, and pricing is tailored accordingly. With overheads such as shop rent, electricity bills, and other operational costs, the final product prices are influenced by these factors."
Call for consumer awareness and meeting regulatory gaps
In a sector with over 10,000 glass traders and more than 1.5 lakh people directly or indirectly involved, the absence of a monitoring system raises concerns.
Ghulam Rahman, the president of the Consumer Association of Bangladesh, urges consumers to be vigilant, emphasising the need to verify shops before making purchases to avoid potential exploitation.
Bikash Chandra Das, a deputy director (additional) at the Directorate of National Consumers Rights Protection, acknowledges the difficulty in establishing fixed prices due to the market's diverse product range.
He assures action against complaints backed by appropriate evidence, hinting at the need for a more robust regulatory framework.
Market valuation and allegations of illicit imports
The Business Post several times went to the Bangladesh Eyewear Industry and Merchants Association but found none to talk on the record.
Traders in the Old Dhaka marketplace estimate the market's valuation at approximately Tk 1,000 crore, boasting an annual growth rate of 10 per cent. Despite this growth, allegations of illicit imports or understated values on import documents persist, often involving collusion with customs officials.
A rapidly growing market amid vision challenges
As the spectacle market's valuation soars, driven by the surging use of digital devices, the need for corrective eyewear becomes more pronounced. Vision disorders, including nearsightedness (myopia) and farsightedness, contribute to the growing demand for eyewear in Bangladesh.
