Can Pakistan Afford Its Consumers?
I have very clear memories of going with my mother to whatever the equivalent of a Selfridges was in the Middle East, between the early eighties and nineties, to buy all kinds of things to take back for our family in Pakistan. They ranged from lingerie and makeup to even shampoo, vitamins, VHS tapes and so many electronic products made by National. Then, while in Karachi, I would go with family members to Bohri Bazaar on their shopping trips, where they bought everything from clothes to household goods to having their silver polished – because you could get everything there. I loved Bohri Bazaar because of a chaat there, but my memory is of my aunts wishing there was a Selfridges in Karachi.
I haven’t been to Bohri Bazaar since forever (except to buy a Christmas tree last year), because now we have brands like Alkaram, Gul Ahmed, Nishat Linen, Khaadi and Sana Safinaz to satisfy most of our needs. These brands (to name a few) have diversified from being entirely about textiles to going into home furnishings and accessories – although they haven’t veered from their main forte – textiles. “It has to do with a lack of vision in understanding what lifestyle entails,” my designer friend Mohsin Sayeed told me. Sayeed, the co-founder of Pink Tree Company, says: “If you make lawn suits, you have gone into bed or table linens or you are making perfumes. But lifestyle is more than fashion. Where is the crockery? Where are the many innovative products like local makeup, shampoos or candles that are sold by small businesses on Instagram?”
Small businesses operating on Instagram are certainly having their moment. I’m always amazed by what I find – and buy – on the ‘Gram. From home-based bakery items to children’s wear, to crafts to clothes to beauty products, the local industry has a lot to offer, from the comfort of our screens.
According to local trade sources, Pakistan is the 46th largest market for e-commerce, with a revenue of $5.2 billion last year. Thanks to internet penetration coupled with increased smartphone usage, plus safer payment gateways, and of course the convenience factor, more people are buying online.
Andleeb Rana, a former editor who created her own clothing label called Bulbul in 2021, says this shift in habits stems from a sense of pride for Pakistani goods as well. The shift to the ‘Made in Pakistan’ label is “massive,” she says, adding that younger people are experimenting in local textiles and crafts. “Gone are the days when you would travel abroad and fill up your suitcases with stuff.” There is a demand, there is a variety and there is accessibility. Rana herself plans to diversify – she found great success with a limited edition of kantha rallis she made last year – but her focus this year is on the bestselling kantha jacket she creates.
Sayeed too has begun to diversify with a new label, Kitsch, creating lampshades to start with, and he plans to expand to home furnishings as well as offering interior design services.
He says Pakistan is rich with artisans and crafts, and he’s had great success working with them, but wonders why artisanal work is absent in many of the high street retailers, with the exception of Khaadi.
Khaadi, which has 45 stores in Pakistan, the UAE, the UK and the US, stepped outside textiles when it opened a café in 2021. The company now plans to open Home Café sections in flagship stores, says Tinath Saeed, Thinker, Brand Experiences, Khaadi.
“Our target audience includes not only fashion-conscious individuals but also people who value a holistic lifestyle. By launching Khaadi Home and the café, we cater to individuals and families seeking to enhance their daily living experience. Both offer unique, high-quality products and experiences that appeal to consumers looking for style, comfort and functionality in their home and dining experiences.”
This is an example of what retail experiences could look like in a few years, but what about now?
I ventured to Dolmen Mall on a Sunday – thinking this would be the busiest day – to investigate. I should start with the disclaimer that I’m not a mall person, especially after the pandemic where the ease of buying online changed my habits. I went in expecting more lurkers than shoppers – given the state of the economy – and this was true for high-end boutiques, which were sparse versus high street retailers, like Sapphire, Gul Ahmed and Khaadi (the latter had long lines at checkout). Then, 10 days later, I had to go back to buy something so I went on a Monday afternoon, thinking it would be quiet, and it turned out not to be the case. I recognise this is purely anecdotal.
As a journalist, I need facts and the ones I have at hand tell me how bad the economy is. Pakistan’s inflation rate rose to 12.6% last month, up from 11.8% in May, after easing for five months, according to the Pakistan Bureau of Statistics. The IMF forecasts a 3.5% growth rate for the fiscal year 2024-25, which is a tiny bit lower than the 3.6% target the government has set.
Other signs show how this has (and will) impact retail. Zain Naeem, writing in Profit in February this year, reported that 26% of households were earning more than $10K at the end of 2022 and this figure is expected to fall to 19% in five years.
It makes sense that “consumer spending and ability to purchase products will fall.“However, even if their buying power has shrunk, consumers are still buying, albeit less. In my conversations with a lot of people to gauge their shopping habits, clothes plus home furnishings topped the most cited items, and I saw this too in my non-scientific observations at the mall.
Gul Ahmed was arguably an early mover in diversifying and offers textiles for clothes, home products, and now Western wear with their Salt brand. Shehnaz Basit, COO of Ideas, acknowledges that Gul Ahmed, like many companies, “has been impacted by economic fluctuations that influence consumer spending patterns.” She adds, however, that “proactive measures and strategic adjustments have helped Gul Ahmed navigate these difficulties.”
We tend to think of retail in terms of the big cities like Karachi, Lahore and Islamabad, but Basit says, “demand from second-tier markets forced us to open outlets in the smaller cities of the country.” They have 100+ stores now.
The diversification seems to have paid off, but can it reach a Selfridges level and should that even be a benchmark?
Aamna Haider Isani, a journalist who has covered arts and culture, especially fashion, for at least 20 years, says the expansion of these brands may not reach that level because the consumer and the middle class buying power is much lower than in Europe or other parts of the developing world – especially India. “You don’t have that middle class that is going to buy ready-to-wear or indulge in that kind of shopping, and until we get there, we won’t have a Selfridges,” she says.
But the class that does have buying power has shown excitement at the wide range of goods available for their home. According to Rana, the shift began during the pandemic, when people wanted to make their homes comfortable. “Little businesses popping up had options that were easily accessible,” she said. Women, she said, were making gorgeous linens, candles were big, young folks were experimenting in home accessories and so forth. A visit to any of the markets like The Commons or Mashion, which feature stalls by small businesses, is a testament to how much is available in the lifestyle sector.
Muna Khan researches newsroom culture in Pakistan and
tweets @LedeingLady.
Aamna haider Isani economic growth pakistani economy fashion Muna Khan lifestyle consumer lifestyles pakistani fashion pink tree selfridges bohri bazaar
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Andleeb Rana, a former editor who created her own clothing label called Bulbul in 2021, says this shift in habits stems from a sense of pride for Pakistani goods as well. The shift to the ‘Made in Pakistan’ label is “massive,” she says, adding that younger people are experimenting in local textiles and crafts. “Gone are the days when you would travel abroad and fill up your suitcases with stuff.” There is a demand, there is a variety and there is accessibility. Rana herself plans to diversify – she found great success with a limited edition of kantha rallis she made last year – but her focus this year is on the bestselling kantha jacket she creates.
Sayeed too has begun to diversify with a new label, Kitsch, creating lampshades to start with, and he plans to expand to home furnishings as well as offering interior design services.
He says Pakistan is rich with artisans and crafts, and he’s had great success working with them, but wonders why artisanal work is absent in many of the high street retailers, with the exception of Khaadi.
Khaadi, which has 45 stores in Pakistan, the UAE, the UK and the US, stepped outside textiles when it opened a café in 2021. The company now plans to open Home Café sections in flagship stores, says Tinath Saeed, Thinker, Brand Experiences, Khaadi.
“Our target audience includes not only fashion-conscious individuals but also people who value a holistic lifestyle. By launching Khaadi Home and the café, we cater to individuals and families seeking to enhance their daily living experience. Both offer unique, high-quality products and experiences that appeal to consumers looking for style, comfort and functionality in their home and dining experiences.” This is an example of what retail experiences could look like in a few years, but what about now?
I ventured to Dolmen Mall on a Sunday – thinking this would be the busiest day – to investigate. I should start with the disclaimer that I’m not a mall person, especially after the pandemic where the ease of buying online changed my habits. I went in expecting more lurkers than shoppers – given the state of the economy – and this was true for high-end boutiques, which were sparse versus high street retailers, like Sapphire, Gul Ahmed and Khaadi (the latter had long lines at checkout). Then, 10 days later, I had to go back to buy something so I went on a Monday afternoon, thinking it would be quiet, and it turned out not to be the case. I recognise this is purely anecdotal.
As a journalist, I need facts and the ones I have at hand tell me how bad the economy is. Pakistan’s inflation rate rose to 12.6% last month, up from 11.8% in May, after easing for five months, according to the Pakistan Bureau of Statistics. The IMF forecasts a 3.5% growth rate for the fiscal year 2024-25, which is a tiny bit lower than the 3.6% target the government has set.
Other signs show how this has (and will) impact retail. Zain Naeem, writing in Profit in February this year, reported that 26% of households were earning more than $10K at the end of 2022 and this figure is expected to fall to 19% in five years.
It makes sense that “consumer spending and ability to purchase products will fall.“However, even if their buying power has shrunk, consumers are still buying, albeit less. In my conversations with a lot of people to gauge their shopping habits, clothes plus home furnishings topped the most cited items, and I saw this too in my non-scientific observations at the mall.
Gul Ahmed was arguably an early mover in diversifying and offers textiles for clothes, home products, and now Western wear with their Salt brand. Shehnaz Basit, COO of Ideas, acknowledges that Gul Ahmed, like many companies, “has been impacted by economic fluctuations that influence consumer spending patterns.” She adds, however, that “proactive measures and strategic adjustments have helped Gul Ahmed navigate these difficulties.”
We tend to think of retail in terms of the big cities like Karachi, Lahore and Islamabad, but Basit says, “demand from second-tier markets forced us to open outlets in the smaller cities of the country.” They have 100+ stores now.
The diversification seems to have paid off, but can it reach a Selfridges level and should that even be a benchmark?
Aamna Haider Isani, a journalist who has covered arts and culture, especially fashion, for at least 20 years, says the expansion of these brands may not reach that level because the consumer and the middle class buying power is much lower than in Europe or other parts of the developing world – especially India. “You don’t have that middle class that is going to buy ready-to-wear or indulge in that kind of shopping, and until we get there, we won’t have a Selfridges,” she says.
But the class that does have buying power has shown excitement at the wide range of goods available for their home. According to Rana, the shift began during the pandemic, when people wanted to make their homes comfortable. “Little businesses popping up had options that were easily accessible,” she said. Women, she said, were making gorgeous linens, candles were big, young folks were experimenting in home accessories and so forth. A visit to any of the markets like The Commons or Mashion, which feature stalls by small businesses, is a testament to how much is available in the lifestyle sector.
Muna Khan researches newsroom culture in Pakistan and
tweets @LedeingLady.
Aamna haider Isani economic growth pakistani economy fashion Muna Khan lifestyle consumer lifestyles pakistani fashion pink tree selfridges bohri bazaar
Email
Gul Ahmed was arguably an early mover in diversifying and offers textiles for clothes, home products, and now Western wear with their Salt brand. Shehnaz Basit, COO of Ideas, acknowledges that Gul Ahmed, like many companies, “has been impacted by economic fluctuations that influence consumer spending patterns.” She adds, however, that “proactive measures and strategic adjustments have helped Gul Ahmed navigate these difficulties.”
We tend to think of retail in terms of the big cities like Karachi, Lahore and Islamabad, but Basit says, “demand from second-tier markets forced us to open outlets in the smaller cities of the country.” They have 100+ stores now. The diversification seems to have paid off, but can it reach a Selfridges level and should that even be a benchmark?
Aamna Haider Isani, a journalist who has covered arts and culture, especially fashion, for at least 20 years, says the expansion of these brands may not reach that level because the consumer and the middle class buying power is much lower than in Europe or other parts of the developing world – especially India. “You don’t have that middle class that is going to buy ready-to-wear or indulge in that kind of shopping, and until we get there, we won’t have a Selfridges,” she says.
But the class that does have buying power has shown excitement at the wide range of goods available for their home. According to Rana, the shift began during the pandemic, when people wanted to make their homes comfortable. “Little businesses popping up had options that were easily accessible,” she said. Women, she said, were making gorgeous linens, candles were big, young folks were experimenting in home accessories and so forth. A visit to any of the markets like The Commons or Mashion, which feature stalls by small businesses, is a testament to how much is available in the lifestyle sector.
Muna Khan researches newsroom culture in Pakistan and tweets @LedeingLady.
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