Discounted offers galore on the eve of Pahela Baishakh

The celebration of Bengali New Year remaining only a day away, the country's top retail outlets, restaurants, boutique stores and large groceries are witnessing a boom-time in their sales.

Bengali New Year, more popularly known by their Bangla name 'Pahela Baishakh' is long associated with traditional Bengali foods, colourful attires, musical soirees, cultural parades etc.

The country's top mobile operators, restaurants, retail outlets and super stores, however, have been cashing in on this festive tradition in recent years through devising a range of discounted offers and gifts targeted towards their customers.  

In addition, a number of banks in the country are also offering a range of discounts to their respective clients for purchasing relevant products using credit cards.   

Analysing these offers, it was found that some entities are offering as much as 70 per cent discount on their products on the occasion of this year's Pahela Baishakh.

Market insiders observed that the hotels, restaurants and even small roadside eateries in particular see a big boom in their sales during this festive season.  Estimates suggest that the customer inflow of big restaurants in the capital increase by almost 15 to 20 percent on the first day of Bangla New Year.

"Dhakaites, at heart, are connoisseur of food. Food is a big part of any of our festivals including that of Pahela Baishakh", said Aniruddha Sur, who is a Sales and Marketing specialist of Lakshore Hotel in Dhaka.

"Eateries have become a center point of our leisure period for some years now as they can offer a safe and comfortable place away from hustle and bustle of the megacity", he added.   

Hotel and restaurant owners observed that on Pahela Baishak, demands specifically increase for traditional Bengali food items like Panta, Hilsha, Pitha (traditional Bangla cake) etc.

In line with these sales boom for restaurants and retail outlets, mobile operators are also offering various discounted offers in partnership with  other commercial outlets, particularly involved in apparel and food business.  

"Most of our offers are usually targeted towards restaurants and apparel outlets. This is because, foods and clothes are the two things where the consumers of Bangladesh like to spend much of their disposable income", said an official of Grameenphone, the country's top mobile operator.

Visiting the top grocery stores like Agora, Meena Bazar and Swapno, it was found that these outlets have geared themselves up for Baishakhi Bonanza with special decorations while also showcasing traditional Bengali food items like Pitha, Moa, Naru, Batasha etc. in their shelves.     

Market insiders also observed that the recent introduction of Baishakhi bonus for government employees have been a boon to traders.

Government employees of the country started to receive 20 per cent Baishakhi bonus on their basic pay starting from last year.

"Although the initiative is highly welcome, 20 per cent bonus is actually not enough given the hike in price of  many items like Hilsha that are being witnessed during the Bishakhi season", said a government official.    

Baushakhi bonanza is further fueled by the banks that are offering discounts ranging between 10 and 30 per cent for purchasing goods and services from outlets like Aarong, Persona, Dorjibari, Aarong, Khaaki and Banglar Mela.

In addition, at least one non-banking financial institution (NBFI) has also offered such discounts for their cardholders.

The banks and NBFIs are sending regular SMS (Short Message Service) to their cardholders encouraging them to avail such offers.

"Banks have come up with very attractive offers in conjunction with retail outlets for their cardholders at discounted rates," Anis A Khan, Chairman of the Association of Bankers, Bangladesh (ABB), told the FE.

Mr. Khan, also chief executive officer and managing direct of the Mutual Trust Bank Limited, said the Bengali New Year celebration has become a common festival for all Bangladeshis.

Talking to the FE, a credit cardholder said that such offers are a good tool for encouraging the use of plastic money in Bangladesh.

"Besides, such offers have helped the cardholders to purchase goods and services with lower rates," he explained.

It is however notable that the banks are charging their clients higher interest rates ranging between 30 and 36 per cent for cash credit card loans where the overall weighted average interest on lending stood at 9.77 per cent in February, according to the Bangladesh Bank officials.

"It's totally an insecure loan," a senior executive of a leading private commercial bank said. The interest rates on such loans are higher mainly due to close monitoring and supervision, he added.

"We're planning to conduct a study in this connection," a BB senior official told the FE without elaborating.

Another BB official said a number of eligible clients are reluctant to get credit-card service from the banks mainly due to higher interest rates on cash loans.

The number of credit cardholders crossed 8.76 million until January, 2017 with the total outstanding loan through credit cards reaching Tk 32.22 billion, BB data shows.

The short term loan disbursements through credit cards are a risky venture for the banks since default rate in the case of such loans is very high, according to bankers.

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