Bangladesh’s e-commerce sector looking for Eid business boost

Younger customers, particularly those adept at technology, lean towards online shopping, traders say

College student Nafisa Nidhi is opting for online shopping on e-commerce platforms instead of physically stepping into stores for Eid-ul-Fitr shopping, especially with the college-leaving HSC exams around the corner.

According to the student of Viqarunnisa Noon School and College, ordering clothes online ensures quick delivery within three days and offers better service quality compared to traditional shopping methods, with reduced chances of being cheated.

For many, Eid shopping is an enjoyable experience, but concerns about traffic congestion and the hassle of shopping in crowded markets often put them off.

E-commerce websites and Facebook-based sellers offer a convenient alternative.

Customers can browse through their favourite clothing brands' websites or Facebook pages on their smartphones and have their chosen products delivered to the doorstep.

Sellers note that this increasing reliance on online shopping reflects a growing preference for convenience over the challenges of traditional physical store shopping.

The trend of relying on online shopping has notably surged since the onset of the COVID-19 pandemic in 2020, with movement restrictions and lockdowns prompting more people to turn to e-commerce platforms.

As a result, the e-commerce sector has witnessed significant growth, but fell again after the restrictions were lifted.

In February 2022, amidst economic challenges stemming from the Ukraine war-induced recession, there was a potential decline in online shopping compared to the previous year, according to fashion entrepreneurs and sellers.

However, fashion houses are anticipating a rise in online sales during this Eid season, despite the uptick in commodity prices.

The figures given by people in the sector indicates a steady trend of sales during the festival.  

Jahangir Alam Shovon, the executive director of the e-Commerce Association of Bangladesh (e-CAB), which represents brands and companies engaged in online retail, said that while the organisation has 2,500 members, the country boasts around 3,000 e-commerce websites.

He further mentioned that online shopping sees a significant surge during Eid with approximately 900,000 product deliveries are expected during this period.

Typically, there is a 25 percent increase in delivery volume before Eid compared to the rest of the year.

Shovon forecasts that around 25 percent of total Eid sales may occur through e-commerce platforms, with an additional 18 percent through f-commerce, which operates primarily through Facebook pages.

EID SHOPPING GOES ONLINE

All prominent clothing brands in the country have established websites, and they ramp up their online presence especially during festival seasons. While online sales typically constitute around 5 percent of their total sales throughout the year, this figure doubles during Eid for brands like Le Reve.

According to Monnujan Nargis, the CEO of Le Reve, online sales during Eid are equivalent to the total sales of one of their showrooms. Nargis sounded optimistic about increased sales this Eid, noting that during this time, they receive more orders from cities beyond Dhaka, with half of their total online sales originating from outside the capital.

Expatriates also contribute to online orders, particularly from countries like the US, Canada, Australia, the UK, France, and Germany. To incentivise purchases, Le Reve offers free delivery for orders exceeding $150 from overseas during Eid.

Similarly, renowned fashion brand Aarong caters to customers through its showrooms, e-commerce platforms, and Facebook pages, with their website showcasing new Eid collections. Products ranging from sarees to jewellery are available for purchase.

Asif Ahmed, a private company employee, prefers online shopping from Aarong because of time constraints. He finds it convenient and time-saving, especially with the added advantage of avoiding crowds.

SaRa Lifestyle also prepares for Eid with a fresh collection showcased on their website and Facebook page, featuring a diverse range of attire for both men and women.

Kay Kraft entrepreneur Khalid Mahmood Khan highlighted the expanding e-commerce market, with online orders during Eid matching the sales of a large showroom.

Besides clothing, Kay Kraft offers shoes, jewellery, and other fashion items, with free delivery for overseas orders exceeding $200.

Several other fashion brands, including Anjans, Bishworang, Rang Bangladesh, Cats Eye, RichMan BD, YELLOW, Qrius, Ecstasy BD, Klubhaus, and Gentle Park along with e-commerce platforms like Deal, Priyo Shop Retail, Bagdoom, Ekhoni, Ajker Deal, Haat-Bazar, Upohar BD and Daraz, launch Eid collections on their websites and social media pages.

Moreover, customers can now purchase shoes directly from renowned footwear brands' websites and e-commerce platforms, further enhancing the convenience of online shopping during the festive season.

Nabib Chowdhury regularly purchases shoes online, prioritising reputable brands and e-commerce sites for reliability. Despite three years of online shoe shopping without issues, he remains cautious.

In contrast, Tanjila Shaira, a consultancy professional, prefers physical shoe stores due to a previous unpleasant online shopping experience. She found it inconvenient to exchange shoes online and end up keeping an uncomfortable pair.

Apex footwear brand offers a 15-day exchange policy for shoes purchased online, allowing customers to swap sizes or styles at any showroom, excluding discounted items.

Craftsman Fashion specialises in designer shoes for both genders, offering a hassle-free return or exchange process within three days of delivery for any size or quality concerns.

Ariful Islam, the brand and marketing officer at Craftsman Fashion, noted the increasing trend of online shoe shopping, emphasising simplified return policies to accommodate customer preferences.

Regarding customer complaints, e-CAB ED Shovon advised buyers to first contact the respective websites. If unresolved, they can raise the issue with the Directorate of National Consumer Rights Protection.

EID SALES BOOM ON FACEBOOK

Business opportunities for Facebook-based entrepreneurs have surged since the pandemic, with entrepreneurs showcasing their products on Facebook pages and directly engaging with customers via Messenger.

The Biskut Factory has been leveraging Facebook for years to sell handmade products ranging from shoes to jewellery and T-shirts, all featuring unique designs crafted by Biskut, the designer and entrepreneur behind the brand who prefers to go only by his first name.

He notes that while online sales remain steady year-round, they see a notable uptick during Eid, offering packaged deals to cater to customers' budgets.

Similarly, Glued Together specialises in designer jewellery made from unique materials, initially starting as a Facebook page and later expanding to a dedicated shop.

Entrepreneur Mehnaz Ahmed Adiba shares that the Eid rush has already begun, with orders pouring in for their handcrafted jewellery.

Despite no discounts, they offer round-the-clock ordering during Eid and include a handmade Eid card with each purchase.

For Nausheen Jhuma, a doctor turned jewellery enthusiast, Facebook pages offer a more creative and accessible platform to explore and purchase jewellery compared to traditional stores.

Meanwhile, Rezwana Chowdhury prefers Facebook pages over e-commerce sites for buying items like salwar kameez, bags, and makeup products for Eid, citing the wide variety and ease of ordering available through the social media platform.

ONLINE SHOPPING: PREFERENCES AND CONCERNS

Younger generations, particularly those adept with technology, lean towards online shopping.

However, their preferences vary depending on the item.

Oli Ahad, an IT professional, avoids purchasing traditional attire and shoes online due to concerns about fabric and size accuracy. He is open to buying accessories online if he finds them appealing.

Maida Nisha, employed in the private sector, opted for online shopping for her Eid outfits but faced delivery delays.

She acknowledged the pros and cons of both online and offline shopping. While she finds online shopping convenient for personal clothing, she is cautious about buying gifts and baby clothes online because of accuracy concerns.

Adnan Saqib, another private sector worker, prefers online shopping for T-shirts, pants, belts, and accessories, relying on seller ratings and reviews.

Despite noticing higher prices compared to last year, he appreciates the convenience and discounts available online.

However, Azizun Nahar, a teacher, had a negative experience purchasing traditional clothing online due to issues with fabric and size accuracy. As a result, she prefers shopping in person during Eid, despite the crowds, as it allows her to make confident choices.

[Writing in English by Arshi Fatiha Quazi; editing by Osham-ul-Sufian Talukder]