Checking the pulse on Avurudu

Charmaine FERNANDO and Lalin FERNANDOPULLE

Consumer goods are filling the stores. The traders are stock-taking. The supermarkets are being stacked. The economic centres are bustling. The pavement hawkers are already lining the streets. Every little town and village in Sri Lanka is getting ready for business. Hope is widespread. Avurudu is round the corner.

The consumers are not rushing. They are cautious. Suddenly rash spending is curtailed.

Women select clothes at a shopping mall in preparation for the Sinhala Hindu New Year

The average shoppers have suddenly become overtly price conscious and are negotiating value for money. The pattern of product-movement is rapidly changing.

The essential items are moving. The luxury items are slashed off their lists. The average consumer is knowledgeable about the global economic recession and is wise enough to curb impulsive spending.

Value for money

Sunday Observer Business checked the pulse at a few clothes stores. Where the price tags were heavier than the garment, the shops were dried up despite being big names over a long period. The sales girls were bored due to lack of new business during the Avurudu season. Boys’ teeshirts were priced Rs. 595. Ladies sleeveless sequined blouses were Rs.850 up. With sleeves, it cost a good Rs. 150 more. Three quarter pants were available at Rs. 795 while ladies’ pants ranged from Rs. 475 for plain day wear to Rs. 975 up for good-looking ones. Not much choice remained to entice shoppers.“Giving value for money and being strategic in pricing to service three market segments with each type of garment helped to build our success story” says the Manager of the NOLIMIT Wellawatte showroom.

Children’s garments were priced from Rs.145 to Rs. 290 to Rs. 450 to feed the different needs of three strata of the market.

Childrens party shoes were priced at Rs.450 up. Imported shoes were priced high to cover Rs. 450 to 700 tax per pair, it was revealed.

“We have also floated ‘Glitz’ to entice and feed the needs of the up-market segment who look for elegance and extraordinary wear. Meeting the aspirations of the consumer with affordable quality clothes that are in fashion, No Limit is hopeful that Avurudu will usher in better days for business.

North, East sales

Palmyra Development Board was contacted to check if whether jaggery is in demand to make sweetmeats.

Manager Research, Subramaniam Thillainathan, who is also overseeing the Marketing division said that there is no rush for his products as yet but Colombo sales are targeted at Rs. 500,000 this year.

Sales pick up from February as the supplies are brought in at that time from Jaffna and sales reach its peak in May and June. Treacle and Jaggery are the two main products they target for the New Year. They have ventured in to sales points at Seva Vanitha outlets in Central Bank and Labour Secretariat premises where sales are good.In the North alone three outlets operate in Nelliaddy, Jaffna Town and near the Jaffna Kachcheri, downtown. These operate as sales and purchasing outlets servicing both sectors. Batticaloa, Kalmunai, Trincomalee, Vavuniya and Mannar together account for the nine outlets Palmyra products are sold. He is hopeful of enhanced sales during Avurudu.

Innovation

Channa Hewage, Marketing Manager Asian Paints said the dealers are hopeful. They are buying enough stocks despite the decline compared last year. www.unions.lk website revealed that leading players in the paint market have a 60 per cent drop in sales and have reduced 40 per cent production.

“Comparatively this year shows a 20 per cent to 30 per cent sales drop, off the shelves, against last year. But we have hope the market will turn around. Against a global downturn, innovation is the only progressive path” he insists.

The garment sector, had 30,000 employees lose their jobs as a after effect of the global recession.

The priority for these jobless thousands now is to find a job for their day to day sustenance. Avurudu then is their only hope of new beginnings.

Low prices

Minister of Trade, Bandula Gunawardena said, “Last year there was a severe escalate of prices of essential goods at the Avurudu season. With reference to the Lankadeepa dated April 12 2008, page nine reported the pricing as follows; Samba Rs. 85 per kg as against today’s Rs. 69, Red raw rice was Rs. 75 against today’s price of Rs. 50 - 54” he said.

“A coconut ranged from Rs. 50 to 60 against today’s 23 and coconut oil took the market by storm rising up to Rs. 275 against today’s price of Rs. 100. Vegetables such as cabbage, beans and carrots were sold at Rs. 120 per kg against today’s price of Rs. 40 to 50 the most.

Green chillies moved at to Rs. 300 per kg while tomatoes rose to Rs. 120 per kg last year this time, he insisted. Besides red onions were sold at Rs. 150 per kg while potatoes were priced then at Rs. 100 he said.

When you purchased a cylinder of gas paying Rs. 2000 you received a balance of Rs. 150 where as in today’s context against the rising cost of the armed conflict you get Rs. 913 balance to your hand. “Last month’s cost of living index was reported at 7.6. Inflation is rapidly declining against last years reported scale.

Despite a domestic conflict and head on with a global recession the ability to bring down the prices of goods is an achievement in itself” he said.

“The private sector is taking it hard because the masses are patronising LakSathosa sited in 102 outlets while Co-op City is doing profitably in 364 locations. There are mini Co-op City units in almost 200 locations feeding people’s needs efficiently.

Cautious spending

“The consumers have shifted to ‘more value for money’ outlets abandoning stores with super images. People are shifting their buying patterns with the emphasis on practicality.

This has arisen due to 1.2 to 1.4 million of our people who work overseas practising thrift with their hard earned money and are knowledgable about best practices adopted the world over at a time of global downturn” he said.”Today our people have wisely adjusted their lifestyles to pivot around more economical practices” he said. Secretary, Essential Commodities and Traders’ Association, G. Nadan said there are adequate stocks of essential food items for the festive season and added that consumers could buy the best quality products.

“The Association ensures that its members comply with the maximum retail price on a kilogram of samba rice and other regulations imposed by the Consumer Affairs Authority”, Nadan said.

He said traders look forward to an early end to the war which would enable them to develop trade links between the North and South. The opening of the A-9 Road would bring immense benefit to the economy.

Transport services

Meanwhile the Ministry of Transport has made special arrangements with bus and train services for the festive season.

A special train service will operate during the Sinhala and Tamil New Year festival from Colombo Fort to Bandarawela, Badulla, Hatton, Mahawa and Galle, a Railway Department spokesman said. The special service will commence from April 8-19 according to schedule.

The special Number 1 service to Bandarawela will leave Fort at 7.20 p.m. on April 8, 10, and 12 and will return at the same time on April 9, 11, and 19.The long weekend train service to Hatton will leave Fort at 9 p.m. on April 8 and 11 and a service back to Fort will operate on the same day.

The Fort-Mahawa service will operate on April 8, 11 and 12 and the return service will be on the same days.

A train service from Maradana to Galle will commence on April 10, 11, 12 and 13 at 6.10 p.m. A service from Galle will commence at 5.a.m. on 10,11, 12, and 13.

A spokesman for the Ceylon Transport Board said due to the ongoing crisis between the National Transport Commission and the All-island Bus Owners Association no arrangement has been made but added that a special bus service will operate on all main routes.