That the 'Eid' economics constitutes an all-too-important part of the Bangladesh economy is well-reflected in the turn-out of customers and volume of transactions at shopping centres. This is borne out also by busy trading at most retail and wholesale marketing outlets across the country. This year's record-setting nine-day vacation at a stretch has furthermore lent a distinctive feature to the festival of the Eid-ul-Fitr.
Alms-giving by way of 'sharing of wealth' through 'zakat' and other kinds of donations and charities are also made on the occasion. In purely economic or financial terms, the Eid-ul-Fitr has, thus, greater implications than those of Eid-ul-Azha. The business turn-over, sales volume, customers' turnout at shops and marketing centres on this occasion are considered relevant indicators about the pulse of the economy -- the spending power, mood and capacity of the consumers in general.
Things are expected to be upbeat on the consumer front this year. The general pay-hike of the public sector employees and somewhat commensurate adjustments in compensation packages in some private sector establishments as well as payments of Eid bonuses at the enhanced rate, do certainly have reasons to buoy up the demand. The overall consumer price index, according to Bangladesh Bureau of Statistics (BBS), shows a steady and stable trend while the per capita income, according to the same official figures, are up. These are positives on the demand side on the eve of the Eid-ul-Fitr.
The nature and pattern of Eid shopping is, however, not uniform and do vary according to circumstances and the income level of different segments of the population. The very affluent ones, though a microscopic group but enjoying still a disproportionately a very high level of income, do mostly their shopping or holidaying abroad on such occasions. The middle and upper middle income groups do their shopping here. But their buying preferences do differ, though most of them prefer foreign, mostly Indian, clothes in particular, to local varieties. The supplies of such foreign items come here mostly through informal channels and in the process, the country's money moves outside illegally. The suppliers from abroad are thus one major group of beneficiaries of the Eid shopping spree.
The consumers belonging to fixed or lower middle or low-income groups whose numbers are vast but aggregate volume of purchases, in value terms, is relatively low, buy more often than not mostly local items. Besides rising income levels of most categories of customers, albeit the skewed nature of income distribution, have led to a growing tendency for buying, to cite here an example, more than one dress item on occasions like that of the Eid-ul Fitr. There is a growing tendency of giving gifts as well. All such transactions do no doubt contribute to production of goods, generation of employment and income. But nobody here knows, for certain, who are the most gainers here in real terms - local business or foreign ones.
Meanwhile, marked improvements in quality and design as much as competitive prices of a good number of local products, particularly in the clothing segment, is a positive development that has taken place in the recent years. Notwithstanding this, the foreign-made ones, particularly those of India, are taking advantage over the local products through 'over-publicity' that can be likened to an orchestrated campaign or propaganda. The domestic producers get the beating here, quite unfairly. Against this backdrop, it has become imperative for Bangladeshi manufacturers or producers -- big and small -- to target the festivals like the Eid through stepped-up promotional drives in a more market-friendly way.
