Economy

Eid sales surge online, yet fall short of business hopes

The country's e-commerce and F-commerce platforms are witnessing a surge in sales ahead of Eid-ul-Fitr, but growth remains below expectations.

Since the onset of the pandemic, sales during the Eid has become the lifeblood for the local online shops.

From established e-commerce sites to thousands of Facebook-based businesses -- whose activities are categorised as F-commerce -- almost everyone experiences a sharp rise in orders as people rush to purchase clothes, footwear, cosmetics, and gifts for their loved ones.

However, industry insiders say that after a slowdown ahead of Eid last year, sales this year have seen only a moderate increase.

Khadija Tul Kubra, owner of clothing outlet Warisha Fashion, said sales over the past few weeks have risen moderately. "But it hasn't met our expectations," she added.

Like thousands of others, Khadija's business grew significantly during the pandemic. She started Warisha Fashion in 2019 through a Facebook page and has since expanded her presence through two physical outlets.

"Most Eid sales usually peak right before Ramadan begins. Now, only a few sales are coming in," she added.

Nazmun Nahar, owner of online clothing store Rapunzel, said her business has been struggling since July last year.

"Online sales have been disappointing," she noted, attributing the slowdown to persistent inflation and political uncertainty.

Compared to previous years, the current situation is far worse for businesses like hers, which rely solely on online sales.

However, a few of her loyal overseas clients have continued placing orders, providing some relief amid the downturn.

Nashid Andalib Nikita, founder and owner of Kabbo Konna, a popular F-commerce platform, said she is experiencing strong sales this Eid season.

"The sari business is doing exceptionally well," she added.

With Pahela Baishakh falling just days after Eid, demand has risen further as clients from other religious backgrounds are also placing orders.

However, she pointed out that the expense of boosting her Facebook page is eating into profits, while the higher US dollar rate is also hurting her business.

"Despite good sales, these factors are making it difficult to maintain profitability," she said, expressing concern over the growing challenges of online business.

Princess Gallery, an online store that mainly sells apparel for children, is witnessing steady Eid sales this season. "So far, our online Eid sales are up," said Pakee Chakma, owner of the brand.

She remains hopeful that sales will accelerate in the coming days as Eid approaches.

"With Eid just days away, we expect a significant boost in orders," she added, expressing optimism about the last minute shopping rush.

According to e-commerce platforms, demand was highest for women's and children's clothing. Luxury designer wear, matching family sets, and traditional outfits like panjabi, sari, and salwar kameez topped the charts.

Along with clothing, footwear, bags, perfumes, and home decor items sold in large numbers. Many online stores also launched special Eid collections, providing cashback offers and free delivery campaigns to attract buyers.

Mobile financial services and cash-on-delivery options made transactions easier for customers.

Daraz, the country's largest e-commerce platform, said sales have shown an increase of nearly 50 percent compared to the previous month.

However, compared to last year's Eid-ul-Fitr sales, they have seen a decrease of around 20 percent.

"Previously, customers favoured high-end items such as premium televisions, refrigerators, and air conditioners during this festival.

This year, we're observing a shift towards essential purchases," AHM Hasinul Quddus Rusho, chief corporate affairs officer at Daraz Bangladesh.

"While some customers may still purchase high-value items like mobile phones, overall spending appears more conservative," he said.

To address this, Daraz, in collaboration with sellers and directly with manufacturers and importers, is offering attractive deals to customers.

"This allows us to provide significant discounts, including vouchers worth nearly Tk 5 crore, offering savings of up to 80 percent," said Rusho.

"Furthermore, we've introduced promotions such as free delivery on purchases of three or more items and a special gift with the purchase of four," he said.

"In addition, various payment partners are offering discounts of up to 15 percent on our platform. In total, these initiatives aim to make product prices very reasonable," said Rusho.

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Eid sales surge online, yet fall short of business hopes

The country's e-commerce and F-commerce platforms are witnessing a surge in sales ahead of Eid-ul-Fitr, but growth remains below expectations.

Since the onset of the pandemic, sales during the Eid has become the lifeblood for the local online shops.

From established e-commerce sites to thousands of Facebook-based businesses -- whose activities are categorised as F-commerce -- almost everyone experiences a sharp rise in orders as people rush to purchase clothes, footwear, cosmetics, and gifts for their loved ones.

However, industry insiders say that after a slowdown ahead of Eid last year, sales this year have seen only a moderate increase.

Khadija Tul Kubra, owner of clothing outlet Warisha Fashion, said sales over the past few weeks have risen moderately. "But it hasn't met our expectations," she added.

Like thousands of others, Khadija's business grew significantly during the pandemic. She started Warisha Fashion in 2019 through a Facebook page and has since expanded her presence through two physical outlets.

"Most Eid sales usually peak right before Ramadan begins. Now, only a few sales are coming in," she added.

Nazmun Nahar, owner of online clothing store Rapunzel, said her business has been struggling since July last year.

"Online sales have been disappointing," she noted, attributing the slowdown to persistent inflation and political uncertainty.

Compared to previous years, the current situation is far worse for businesses like hers, which rely solely on online sales.

However, a few of her loyal overseas clients have continued placing orders, providing some relief amid the downturn.

Nashid Andalib Nikita, founder and owner of Kabbo Konna, a popular F-commerce platform, said she is experiencing strong sales this Eid season.

"The sari business is doing exceptionally well," she added.

With Pahela Baishakh falling just days after Eid, demand has risen further as clients from other religious backgrounds are also placing orders.

However, she pointed out that the expense of boosting her Facebook page is eating into profits, while the higher US dollar rate is also hurting her business.

"Despite good sales, these factors are making it difficult to maintain profitability," she said, expressing concern over the growing challenges of online business.

Princess Gallery, an online store that mainly sells apparel for children, is witnessing steady Eid sales this season. "So far, our online Eid sales are up," said Pakee Chakma, owner of the brand.

She remains hopeful that sales will accelerate in the coming days as Eid approaches.

"With Eid just days away, we expect a significant boost in orders," she added, expressing optimism about the last minute shopping rush.

According to e-commerce platforms, demand was highest for women's and children's clothing. Luxury designer wear, matching family sets, and traditional outfits like panjabi, sari, and salwar kameez topped the charts.

Along with clothing, footwear, bags, perfumes, and home decor items sold in large numbers. Many online stores also launched special Eid collections, providing cashback offers and free delivery campaigns to attract buyers.

Mobile financial services and cash-on-delivery options made transactions easier for customers.

Daraz, the country's largest e-commerce platform, said sales have shown an increase of nearly 50 percent compared to the previous month.

However, compared to last year's Eid-ul-Fitr sales, they have seen a decrease of around 20 percent.

"Previously, customers favoured high-end items such as premium televisions, refrigerators, and air conditioners during this festival.

This year, we're observing a shift towards essential purchases," AHM Hasinul Quddus Rusho, chief corporate affairs officer at Daraz Bangladesh.

"While some customers may still purchase high-value items like mobile phones, overall spending appears more conservative," he said.

To address this, Daraz, in collaboration with sellers and directly with manufacturers and importers, is offering attractive deals to customers.

"This allows us to provide significant discounts, including vouchers worth nearly Tk 5 crore, offering savings of up to 80 percent," said Rusho.

"Furthermore, we've introduced promotions such as free delivery on purchases of three or more items and a special gift with the purchase of four," he said.

"In addition, various payment partners are offering discounts of up to 15 percent on our platform. In total, these initiatives aim to make product prices very reasonable," said Rusho.

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