Focusing on local demand gives more business

LAHORE: Domestic commerce is steadily growing in the country as even the large exporters have realised that they cannot survive any global downturn if they do not have a solid base for their products in the domestic market.

The thrust towards domestic market has also increased because young consumers are the dominant force. Retail is a buzz word these days and it is not limited to groceries. Walk-in customers are being served even at private hospitals and private schools, as the government services in these fields continue to deteriorate.

Pakistan’s economy has come a long way from licensed based imports when the license holders used to make tons of money. Exports were then seen as the best business to make money. This period lasted for a longer period because the rupee was regularly devalued to provide the exporters with guaranteed profits against their investments. After every three consignments, the exporters used to get higher returns for the goods as the rupee value used to be higher at the time of shipment and lower when the export proceeds were received.

Retailing first started in education when hundreds of private schools, colleges and universities were established by the private sector to fill the vacuum created by the inept public education system. The healthcare services too were soon dominated by the private sector as government health services were pathetic. The housing societies were the next to erupt as the state had no answer to the ever growing housing needs of the population.

Among the manufacturing sectors home appliances started slowly replacing the imported appliances. Two decades back, the refrigerators, colour television, and air conditioners market was dominated by imports. Today, the top three brands in each of these categories are produced in Pakistan along with fully automatic washing machines, microwave ovens and other electronic gadgets.

Textiles, rice, and leather that comprised the bulk of our exports however remained focused on foreign markets. Rice manufacturers were the first among exporters to recognise the importance of the domestic market and successfully introduced their basmati rice brands a decade back. They now have a lucrative domestic market for their products. Some leather exporters introduced their branded products in the domestic market but received lukewarm response.

The share of textiles in the domestic market was less than 15 percent about five years back. Textiles however remained the mainstay of our exports commanding a share of 65-55 percent in the total exports of the country. Whenever global textiles came under pressure, the textile industry in Pakistan suffered more heavily because of its dependence on exports. Currently the entire ladies fabric and apparel market of Pakistan is designed and produced here.

Breeze was the first Pakistani brand of fabric and apparel that made its mark in the domestic market and then in exports. Its products were retailed at company retail stores. This model was replicated in foreign countries. Thus, this brand was first established in Pakistan before venturing into exports. Khadi has emerged the most popular brand in Pakistan.

Fabric designing played a major role in the popularity of Pakistani ladies fabric that according to some estimates has sales in the vicinity of Rs400 billion per annum and increasing. Khadija Shah, the daughter of former federal Finance Minister Salman Shah is the most celebrated fabric and apparel designer of the country.

The country boosts of over 150 most talented fabric and apparel designer that remain engaged throughout the year to produce innovative designs for scores of brands.

In the last two years, the largest business houses of the country have established hundreds of retail outlets of their brands. You can find retail outlets in every major market of the country from Gul Ahmad, Nishat Group, Al Karam, Sapphire, and Din Textiles. Most of them have opened dozens of retail outlets in Dubai, Saudi Arabia, United Kingdom, Canada and the United States.  Even individual brands like Junaid Jamshaid after success in Pakistan have opened retail outlets in UK, Canada and the US.

The new retailers innovate ways to attract the new high-tech generation with appealing ads and innovative brand names.

The name attracts the youngsters but it is the final product that matters for sustained sales and mouth publicity.