Muhammad Saleem

With electricity prices steady and fuel rates reduced, traders and shopkeepers are confident that winter products will bring better business this year compared to last. Talking to Wealthpk, Nadeem Ahmed, a salesman at a garments shop, lamented that the roller-coaster prices of electricity and fuel had thrown a wrench into the production process, the supply of raw material, and the buying capacity of customers last year. However, he said it's a good omen that the prices are now stable compared to the previous year. He recalled that last year, people suffered significant financial losses due to the skyrocketing prices of energy and fuels.

“Sensing the stabilization in energy and fuel rates, I’ve observed that suppliers are adjusting their prices downward. I believe that reduced prices of winter products will create a golden opportunity for small business owners and vendors to offer attractive deals to customers,” he added. He said that these better deals will significantly boost sales and provide much-needed relief to customers. He said that due to climate change, manufacturers, shopkeepers and vendors are in the dark about the duration of the winter season. He noted that a prolonged winter season would let businessmen hit the jackpot, as it would allow them to clear their stocks and boost their profits.

He said that scores of manufacturers have prepared a wide range of products, including sweaters, shirts, tracksuits, shawls, and ladies’ suits. He believes that the majority of items manufactured this year will fly off the shelves during this winter season. Ahmed Khan, a factory owner, said that the lower energy and fuel prices helped them reduce the costs. He explained that high fuel prices had increased transportation costs, making it difficult to ship products to remote areas. However, with the current fuel prices, they are now able to dispatch their products to these areas at a lower cost. He said transportation costs are paramount for businesses that rely on moving goods from suppliers to stores.

He said that from manufacturers to vendors, everyone can boost their profit margins and reduce their product prices when transportation costs decrease. He noted that shopkeepers in tourist spots, in particular, benefit greatly during the winter season, and lower fuel cost make it easier to provide them with necessary products.  The trend of online shopping is rapidly increasing, and e-commerce platforms are playing a crucial role in satisfying the desires of their clients. However, he said that high fuel cost and fluctuating speed of the internet are hindering their businesses.

He said that during the winter months, people prefer to stay indoors, making online shopping an ideal option. Recognizing the customers' behavior, scores of shopkeepers have established their own online stores and are doing a booming business, he added. Pervez Ali, a shopkeeper, confidently told Wealthpk that consumer confidence had improved significantly compared to the previous year, thanks to the stable prices of electricity and fuel. He explained that last year, rising costs created uncertainty and hesitation among consumers. “However, this season, we have observed that customers feel more financially secure and are willing to spend more freely on both essential and non-essential items.”

He noted that last year, customers were just seeking the cheapest options. However, with the improved economic conditions, their approach is different as they are likely to invest more in quality products. This change in consumer behavior will lead to better sales for manufacturers, retailers and vendors. Ali suggested that it is now the responsibility of the sellers to focus on quality and customer service. He said people always try to enhance their lifestyle and can do so more easily when they feel secure about their financial situation. He also noted that consumer behavior is crucial for the success of any business.

Credit: INP-WealthPk