Money
Tarai unrest, blockade hit holiday shopping season
The festival season has failed to bring cheer to the apparel and footwear sector as the annual sales bonanza did not materialise due to the long-running Tarai unrest and border blockade.The festival season has failed to bring cheer to the apparel and footwear sector as the annual sales bonanza did not materialise due to the long-running Tarai unrest and border blockade. As the country is reeling under a fuel crisis, people who would normally be scouring the bazaars for the latest clothes and shoes have been grounded.
Manufacturers have not been able to roll out new products while traders have not been able to import goods from abroad as transportation facilities from Kolkata port are not available. According to traders, 20-30 percent of their total sales happen during the Dashain-Tihar festive season, but this year they are looking at a severe downturn. Most apparel stores have put their existing inventory on sale with various discounts and offers as fresh shipments have stopped.
“The apparel market took a hit during this year’s Dashain festival as the blockade has disrupted the supply chain. Customers are also not in a festive mood due to the fuel crisis,” said Ishwar Gautam, head of the garment business at Surya Nepal. Gautam added that footfall at retail stores was 40-50 percent lower compared to previous years. The company has launched various schemes on John Players and Springwood products.
Likewise, Saroj Bhattarai, proprietor of 3S Men’s Wear at People’s Plaza, said that consumers had rearranged their priorities this Dashain due to the fuel shortage.
“Generally, people used to buy new clothes during the Dashain festival. It seems that their priority now is to buy induction cookers, rice cookers and heaters,” he said. Bhattarai added that his regular customers had stopped coming to the store as their motorcycles had run out of gasoline.
“I used to have a daily turnover of Rs100,000 to Rs120,000 during Dashain time, but this year sales have barely reached Rs25,000 to Rs30,000,” said Bhattarai.
Footwear manufacturers have expressed a similar view. “The domestic footwear industry has been witnessing an annual growth rate of 10-15 percent, but this year most manufacturers will see negative growth as the blockade and the April 25 earthquake has hit business hard,” said Ram Krishna Prasai, managing director of Shikhar Shoes.
“I haven’t seen this type of slowdown in business in a decade during the festival season.” Prasai added that many factories were on the verge of closure due to lack of raw materials.
Sky Shoes said that it was operating at 20 percent of capacity due to a shortage of raw materials and fuel. “We were not able to launch new shoes in Dashain. We will be compelled to shut down operations if the situation continues for another few days,” said Manoj Shrestha, director of the company.