Retail experts warn of a significant decline in demand that shows no signs of recovery, with Bangladesh's fashion and footwear industry bearing the weight of a severe consumption shortage.
Retailers have seen a sharp drop in sales since July as families have been compelled to put necessities ahead of frivolous purchases due to skyrocketing prices, reports Apparel Resources, a business of fashion media house that provides latest news and insights into the apparel, fashion and textile industry.
The dismal tone that permeates the retail scene is highlighted by a recent poll conducted by the nation's largest grocery chain, Shwapno. With a startling 32.5 on the Consumer Confidence Index (CCI), people are generally pessimistic about their financial circumstances.
While the future condition index is marginally better at 43.8 but still does not point to a return to optimism, the index's current condition score of barely 21.5 is very concerning.
Particularly after the Durga Puja celebration, fashion businesses are struggling with a sharp decline in sales. Rang Bangladesh's CEO, Soumik Das, observed that Indian consumers' purchasing has all but stopped, leaving ready-made local firms to take advantage of certain short-lived seasonal discounts. However, post-festival sales have fallen as a result of consumers' priorities shifting as a result of high inflation.
Fashion wear sales have almost halved in comparison to monthly averages, and store foot traffic has dropped to half, according to Azharul Haque Azad, founder of Shada Kalo and head of the Fashion Entrepreneurs Association of Bangladesh. Sales in September and October have reportedly been the lowest since 2021.
Kay Craft managing partner Khalid Mahmood Khan echoed these thoughts, highlighting the difficulties faced by companies trying to recover. He said, "We don't want to compare this unusual time with regular seasons, but issues persistently challenge us on the road to recovery."
Fashion is not the only industry experiencing widespread pessimism; rising costs and declining purchasing power are also putting pressure on customers throughout Bangladesh. It is evident that consumer spending sentiment is dismal in areas like Rajshahi, Sylhet, Chittagong, and Dhaka, where CCI ratings are below 30.
The focus is still on managing a difficult environment where priorities are changing and discretionary expenditure is continuing to drop as the fashion industry struggles with these economic challenges.
