The evolution of Eid shopping: From physical to digital Space

In Bangladesh, the anticipation of Eid-ul-Fitr traditionally transforms markets and shopping districts into vibrant hubs of activity. However, recent years have witnessed a significant evolution in consumer behavior, influenced by economic factors and the proliferation of digital platforms. This shift is particularly evident in the integration of e-commerce and social media, notably TikTok, into the activity of Eid shopping.

Economic influences on traditional Eid shopping
The economic landscape has played a pivotal role in reshaping consumer habits during the Eid season. Global inflation and rising prices have compelled many shoppers to reassess their spending strategies. Reports indicate that essential goods, including clothing, food, and electronics, have experienced notable price hikes, in recent months, leading consumers to prioritize necessities over luxury items. This shift is evident in Dhaka, where shoppers are increasingly turning to more affordable options, such as small vendors, over upscale malls. Traders have observed a decline in revenue, reflecting this change in priorities. During Ramadan and Eid-ul-Fitr, consumer spending in Dhaka typically surges, fueling various sectors, including clothing, daily commodities, and transportation.

The ascendancy of e-commerce amidst inflation
In contrast to the challenges faced by traditional retailers, the e-commerce sector has experienced substantial growth, particularly during the Eid season. A report by UNB mentions that in recent years, online platforms have reported a 40% to 50% increase in sales, with daily orders rising from 250,000 at the beginning of Ramadan to 350,000. This surge underscores a growing consumer preference for the convenience and competitive pricing offered by online shopping. The average order value has also risen from Tk 2,200 to Tk 2,500, indicating that while consumers are more price-sensitive, they are still making purchases in the digital space.

Prominent fashion brands have adapted to this digital shift. For instance, Le Reve reported that online sales during Eid are equivalent to the total sales of one of their physical showrooms. Notably, half of these online orders originate from outside Dhaka, indicating a nationwide embrace of digital shopping. Similarly, Aarong, a renowned lifestyle brand, regularly offers its Eid collections online, catering to both domestic and international customers.

TikTok’s influence on consumer behavior
Social media platforms have become integral to modern marketing strategies, with TikTok emerging as a significant player in influencing consumer behavior. Its short-form video content allows creators to showcase products in engaging ways, bridging the gap between entertainment and commerce.

“Leveraging short-form content effectively is crucial for driving success,” noted Faiza Zafar, Partnership Manager, Global Business Solutions for South Asia at TikTok. “According to TikTok Ramadan & Eid research, 82% of users feel inspired and connected through the platform. With a growing number of people engaging on TikTok during Ramadan to explore uplifting content, brands should focus on creating meaningful, value-driven experiences that deepen their connection with audiences.”

In Bangladesh, TikTok’s popularity has soared, especially among the youth. Brands are increasingly collaborating with TikTok influencers to promote products, leveraging their substantial followings to reach potential customers. For instance, TikTok creators significantly impact the purchasing decisions of their followers, with many consumers expressing a heightened desire to buy products showcased by these influencers. This seamless integration of content and commerce has made TikTok a formidable force in shaping shopping trends, especially during festive seasons like Eid.

Challenges and opportunities in the digital shift
The transition from physical to digital shopping platforms presents both challenges and opportunities. Additionally, a segment of the population, particularly older generations, may lack the digital literacy required to navigate e-commerce platforms effectively, limiting the reach of online retailers. Logistical hurdles, such as ensuring timely and accurate deliveries across the country, especially in remote areas, remain a significant challenge for e-commerce platforms.

Despite these obstacles, e-commerce allows retailers to expand their market reach beyond their immediate geographic location, tapping into a broader customer base, including international buyers. Digital platforms further enable retailers to gather and analyze consumer data, facilitating personalized marketing strategies and inventory management.

The road ahead: integrating digital and physical retail
The future of Eid shopping in Bangladesh is likely to be a harmonious blend of digital convenience and traditional experiences. For instance, some businesses offer online ordering with in-store pickup options, catering to consumers who appreciate the tactile experience of shopping but desire the convenience of digital transactions.

According to Faiza Zafar, “TikTok has become a go-to platform for Bangladeshi businesses from various industries and of all sizes – from SMBs to large corporations – to showcase their products and services and build an authentic and long-lasting bond with their audiences. They can successfully capitalise on every opportunity the platform provides for them during Ramadan to drive sales and engagement. To do this, they should not just remain present, but pay close attention to communities, to content creators, to trends, and remain agile and adaptable to respond to consumer demand. They should work on becoming an integral, authentic part of the community.”

Moreover, the festive atmosphere of traditional markets during Eid, characterized by vibrant decorations and social interactions, continues to draw crowds. This cultural aspect of Eid shopping is irreplaceable and remains integral to the overall celebration. Therefore, while e-commerce and platforms like TikTok are reshaping consumer behavior, the essence of traditional Eid shopping endures, adapting to incorporate modern conveniences without losing its cultural significance.