Due to several issues, including a decline in the market for women’s salwar-kameez in light of rising living expenses and the affluent class’s disinterest in donating clothing as Zakat to avoid inconvenience, textile manufacturers in Bangladesh are experiencing weak sales ahead of Eid-ul-Fitr.
Rich people usually give zakat, or charity out of religious obligation which boosts their sales during Ramadan.
Nonetheless, to save time and avoid the inconveniences associated with distribution, a growing number of people now choose to give cash instead of following the tradition.
Compared to the laborious and slow process of gathering and distributing clothing, the widespread usage of mobile financial services (MFS) has greatly facilitated consumer convenience.
In January, MFS accounts reached a total of 21.92 crore in a country with a population of roughly 16.98 crore.
In addition, as inflation continues to consume away many’s actual buying power, people have started implementing austerity measures to reduce their spending. As a result, a lot of people are not purchasing any new clothes this year.
Since May 2022, Bangladesh has seen an increase in consumer prices. In particular, for the last year, it has remained higher than 9 percent.
Textile mills often record sales of more than Taka 35,000 crore before the two Eid festivals. Alam Khorshed, the chairman of the Bangladesh Textile Mills Association’s standing committee for local textiles and fabrics, claims that 75 per cent of the sales occur before Eid-ul-Fitr.