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Mixed experienceA cosmetics shopkeeper from Keraniganj, Dhaka, who buys stock at Chawkbazar

Cosmetics demand that usually peaks before Eid fell in lockdown, and higher transport costs cut a Keraniganj shopkeeper's profit

During the 2021 lockdown, a Keraniganj shopkeeper buying cosmetics for his shop at Chawkbazar before Eid said demand outside Dhaka usually rises before Eid but was low this time. With transport costs higher, his profit would also be smaller.

A Business Standard report from May 2021 described the fancy goods and cosmetics trade at Chawkbazar, Dhaka's wholesale hub. Because of Covid movement restrictions, sales were dull even before Eid; not only traders from other districts but even small shopkeepers from other parts of Dhaka could not come. Wholesale shops had few buyers for imitation jewellery, henna, bangles, bags, toothbrushes, soap, cotton buds and clips. A shopkeeper from Keraniganj, Dhaka had come to buy cosmetics for his shop; several traders in his area also buy from him. He said demand for cosmetics rises outside Dhaka before Eid, but this time it was low. With transport costs higher, his profit would also be less. An imitation-jewellery shop owner in the same market said their goods are for low-income people in rural areas and district-level shopkeepers are the main buyers. He sent some products by courier during the restrictions, but customers prefer to see and bargain in person; he had not paid his house rent for two months, and if he had to worry about rent during Eid sales, surviving the rest of the year would be hard. A Khulna online seller said such goods need to be checked in person and prices verified, or you risk being cheated; with inter-district transport shut, he could not come to Dhaka to stock up for Eid. A trader from Shyamnagar, Satkhira with three shops said his shop was empty because he could not stock up.

Lessons

  1. 1.Cosmetics sales lean on festivals like Eid; keep savings to cover rent and costs if the festival season fails.
  2. 2.Transport costs for bringing stock from the wholesale market can eat much of your margin; include them when pricing.
  3. 3.Reselling to nearby shopkeepers adds income on top of your own retail sales, as this Keraniganj shopkeeper does.

Published with the person's permission, without revealing who they are.

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