As Ramadan unfolds, the spirit of Eid shopping in Dhaka is met with a financial hurdle—rising prices.
Consumers, already burdened by inflation, are adjusting their spending habits, prioritising essentials over luxury purchases as costs surge across markets.
From shopping malls to footpath vendors, the sentiment among buyers is unanimous—prices are higher than last year.
Essential goods like clothing, food and electronics have all seen notable price hikes, compelling shoppers to rethink their budgets.
“I had a fixed budget for Ramadan shopping, but everything seems to be costlier than expected. I had to cut down on unnecessary items and focus only on the essentials,” said Rifat Ahmed, a shopper at New Market.
Sellers acknowledge the price surge, attributing it to increased production and transportation costs.
Jafar, a salesperson at Dhaka’s New Market, observed a growing trend where customers compare prices across different retailers and online platforms, delaying purchases in hopes of discounts or promotions.
“Many customers are either hesitating or completely withdrawing from buying non-essential items. Some are waiting for last-minute sales, but those discounts may not be enough to fit their budget,” he said.
Changing Consumer Behaviour
The high prices have led to a significant shift in shopping behaviour. Many consumers have opted for footpath shopping over mall visits, and some have entirely skipped luxury purchases, instead focusing on basic needs.
Traders report a decline in overall revenue, reflecting this shift in priorities.
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During Ramadan and Eid-ul-Fitr, consumer spending in Dhaka typically surges, fueling various sectors, including clothing, daily commodities, and transportation. Nationally, the festive season injects approximately Tk 1.5 trillion (Tk 150,000 crore) into the market, with Dhaka’s local clothing industry alone valued at Tk 70,000 crore—70% of which is generated during Eid.
Markets such as Keraniganj, Kaliganj and Sadarghat serve as crucial hubs, catering to the demand for Eid clothing. But this year’s economic challenges have led to a more cautious approach to spending, particularly among lower- and middle-income groups.
E-Commerce Boom Amid Inflation
While traditional markets struggle with cautious consumer spending, the e-commerce sector has seen an upswing. Online platforms have reported a 40% to 50% increase in sales, with daily orders jumping from 250,000 at the beginning of Ramadan to 350,000.
“The average order value has also risen from Tk 2,200 to Tk 2,500, indicating that while consumers are more price-sensitive, they are still making purchases in the digital space,” said an industry analyst.
This growing reliance on e-commerce highlights an evolving retail landscape where online and offline markets complement each other.
Inflation’s Impact on Small Businesses
For small shop owners, however, the rising inflation has been particularly challenging. Many businesses in Dhaka have reported a decline in sales, with some experiencing a drop of up to 50% compared to previous years.
Akhin Khan, a businessman from Chadni Chawk Market in Nilkhet, shared his concerns. “People are prioritizing food and essentials over fashion and accessories. Unlike previous years, when Eid meant a surge in luxury shopping, this year, spending is much more restrained.”
Experts Call for Strategic Pricing and Promotions
Market analysts suggest businesses should introduce competitive pricing strategies to attract price-sensitive consumers.
“Retailers should offer better discounts, bundle deals, and flexible payment options, including installment plans and special Ramadan credit offers, to encourage spending,” said a business consultant.
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The introduction of targeted Ramadan promotions, flash sales, and enhanced marketing campaigns could also help businesses retain customers amidst rising inflation.
A Dynamic Retail Landscape
Despite economic challenges, Dhaka’s shopping streets remain vibrant. The festive atmosphere persists as consumers balance celebratory purchases with financial caution. As both traditional and digital markets adapt to shifting trends, the city’s retail landscape continues to evolve, blending tradition with modern consumer habits.
As Ramadan progresses, Dhaka’s shoppers and traders navigate a season of both economic strain and festivity, where careful spending and smart retail strategies will shape the future of Eid shopping.
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