Internet: a blessing for wholesale, thorn for retail shops?

As dusk ignited the sky with bright orange hues that slowly delved into black, a small marketplace named Sonali Bazaar at Mirpur Eastern Housing Beribadh, right across the river Turag, used to be seen from afar radiating yellowish-white lights. A hustling and bustling atmosphere with crowds and noise at its peak, the market felt like it had a life of its own.
Mortazul Islam, a local street food vendor at Mirpur Eastern Housing Beribadh, used to sell fuchka and chotpoti there, bringing his small van from "Nobaberbag", not too far fromt here. According to him, at night, even from miles away, the illuminated atmosphere used to catch his attention, never letting him lose his way on the dark riverside road. But within three years, slowly, this once-bustling market began to dim its lights, and now, when he takes a walk through it, he remarks, "It feels like it has been deserted."
The familiar shop around the corner of your locality for decades suddenly gets replaced with something different or become closed - that isn't so surprising as we believe that each passing year brings with it the anticipation of encountering some moderate changes in our familiar surroundings. Time seems to fly by, inevitably ushering in the replacement of the old with the new. From a distance, you might notice the shop that was selling flowers just a week ago now appears to be offering something different. As you draw nearer, you discover that not only have the items in the shop changed, but the owner has as well. What brought those changes?
Most would attribute it to a downturn in business. Indeed, it's true that an unsuccessful venture can demotivate people and lead to a shift in their means of earning. However, constant changes in a local market or anywhere else, which has been known to be selling certain products for decades, would be the thing to catch shocked attention. If you have visited Mirpur 11, the "Nannu market", or "Muktizoddha market", as well as the "Mukto Bangla market" of Mirpur 1, or Pallabi Shopping Centre and Rangdhanu Complex situated at Pallabi, you may have noticed that many shops in these shopping complexes have been shut down. The thing to wonder is that the products they have been selling still have demand, but not their shops. Even in Azimpur New market, shops that have been selling wooden blocks and batik have been replaced with shops selling artificial flowers.
Abdur Rashid, the manager of Pallabi Shopping Centree, said, "In the past year, approximately 13-15 shops have closed down in the complex. It's not uncommon, but what's concerning is that the shops are remaining vacant for an extended period. Previously, vacant shops would be occupied by new sellers within 2-3 months, but now it's taking much longer. Shopkeepers who used to operate 2-3 shops simultaneously have consolidated their businesses into one shop."
Now, turning to the factors affecting businesses that have been successfully operating for years but are now struggling the most, it could be the current inflation, loan issues, falling out of trends, etc. However, there is one big factor that has been affecting the market directly - "The internet".
Ever since the time of Covid, online shops have been receiving incredible attention, remaining the first choice for most people. The manner in which the internet has been affecting consumer behaviour - from shopping preferences to processes - has brought about a drastic change to the local market.
People in general tend to judge markets based on popularity, price variation and product diversity. Behind the dissemination of information about the markets regarding popularity, price variation and collection of the products, internet could be reckoned responsible. Though the tendency for the majority is to search for a popular market which has huge collection and with products cheap but good, not all the places offer these three characteristics altogether.
Nevertheless, the internet has worked magnificently in creating popularity for several markets. As vloggers have been introducing people to cheaper shops that have a large diversity of products, these markets seem to have flourished with growing number of consumers. However, this has resulted in only a handful of shops experiencing overflow in business, while local retail shops are left to wither away day by day, creating vast inequality.
In a sense, this case mostly depends on product types. For many middle and low-class families, their preferred shopping destinations are places offering inexpensive products with a wide variety of options. In the past, Azimpur New Market in Dhaka was the top destination for middle to low-middle families seeking affordability and a vast collection. Although many may now complain that it isn't as cheap anymore, the diverse range of products compensates for it. However, the internet has made it easier for people to discover other markets that are more affordable, offer a wide selection, and are easily accessible or closer to them.
Wealthier individuals on the other hand, tend to gravitate towards brands for everyday items such as clothing, bags, shoes, and accessories. Additionally, online brands have now become a part of their shopping choices.
In addition to vloggers promoting shops or creating entertaining vlog content, many retail and wholesale establishments have begun promoting themselves through Facebook Shorts, pages, and YouTube platforms, offering online services. Anhaz Uddin, owner of a bridal lehenga shop, expressed, "The shop went downhill during the time of the quarantine, but ever since I started posting reels of new collections on Facebook, I stated getting online customers."
These vendors showcase their offerings in videos and provide WhatsApp numbers or create Facebook pages dedicated solely to promoting their shops, rather than being a brand. This gives customers the option to inquire about the availability of desired products before heading to the market.
That was the scenario of markets. Diving deeper, we found local shops selling general fabrics, stitching supplies, handcrafted items and toys among the hardest hit. Nowadays, consumers tend to create lists of their needs and opt for monthly shopping excursions where they can find affordability and a broader selection. Before that, they turn to the internet. They choose popular and trendy places and then go there. Online platforms offering home delivery, and the wholesale shops providing online services have suddenly begun attracting not only retail businessmen from far off places but also regular consumers. While online platforms initially posed a challenge for local retail shops, the situation has worsened with the emergence of wholesale shops offering online services.
The wholesale markets have reduced their minimum order quantity for discounted prices. Alamgir Hossain, a wholesaler on an online platform who also owns a wholesale shop in Chalkbazar, said, 'We used to require retail shops to purchase a minimum of 20 products, but due to the increasing demand from online customers, we now require a minimum of 6 products.'
The owner of Narir Saaj Bostro House explains, "Due to trust issues and uncertainty about product quality, many people refrain from buying online. Instead, they search for the same product in our showrooms but expect the same price they have seen online. They fail to understand that online retailers can offer products at lower prices because they don't have to worry about shop rents. Meanwhile, we, who are renting a showroom at Tk. 42,000, must sell the product at a price that covers our costs."
Expressing frustration over online deals, the owner of Lakshmipur Cloth Store exclaimed, "Inflation has certainly created significant challenges regarding profit and investment, but online dealers have exacerbated the situation. We struggle to attract enough customers, and those who do visit us expect inconveniently lower prices."
In a reflection akin to the proverb "the brighter the light, the darker the shadow", internet's convenience for consumers casts a shadow over local retail shops. Many shopkeepers who are still operating their businesses expressed that their colleagues mostly shifted to the countryside to make a living after shutting down their businesses. The owners of the shopping complexes also expressed concern about how their economy would grow if they fail to rent out their shops. The technological advancement indeed brought convenience to the consumers but harmed the sustainability of traditional commerce.

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