By Pinaki Roy

Amid growing consumer base and fierce competition, it’s time for the sellers to display new products and indulge in promotional campaigns to grab a share of the Nepali market. Manufacturers and traders of different summer products are cashing in on the opportunity. 

The increasing income of the consumers along with a rise in awareness among them has helped open new markets. Besides, growing urbanisation and the concept of nuclear families has played its part in boosting the market for different products. A lot of products are now increasingly seen as necessary items instead of being treated as luxury commodities. 

Branded Wear

Majority would agree that summer is the most fashion-active time of the year. Fashion frenzy for the year has already started with most stores displaying latest summer apparels. It’s time to shed bulky sweaters and jackets and get into light and bright coloured attires. Fashion outlets across the country only know it too well. “We are looking forward to an activity-filled summer,” says Nripesh Shrestha, Manager of U.F.O. The Clothing Store. 

Fashion keeps evolving with new trends emerging every season and it’s not going to be any different this time around. Leading stores such as U.F.O., United Colors of Benetton, Dot Fashion Wear and Springwood have showcased t-shirts, tops, shorts, bermudas and shirts, among others. Store owners say that they expect the summer shoppers to revitalise the market.  Popular multi brand retail chain Dot Fashion Wear is selling summer apparels of established brands including Scotch & Soda, Tommy Hilfiger, Bossini and Levi’s, among others, from its three stores at Khichapokhari, Kathmandu Mall and City Centre. “We certainly expect to do better than last summer with fresh collections from manufacturers around the world,” Sabin Jonchhe, Managing Director of Dot Fashion Wear, confides. 

United Colors of Benetton, that has a single outlet in the country at Durbarmarg, has summer apparels for everyone – men, women and children alike. Pradip Subedi, Accountant with the store informs, “We have our summer collection, both formal and casual, on display since the beginning of April.” 

Love for Branded Wear

The attraction for branded wear has grown immensely over the last few years, say industry insiders. According to an estimate, 60-70 per cent of the visitors at fashion retail outlets now emphasise on checking out branded wear. A staff member at a popular store credits this trend to the youngsters’ affinity for Internet and TV channels that target the youth. 

U.F.O. The Clothing Store, that has a quarterly turnover of Rs 5 million, has made a swift transition from non-branded to branded wear over the last three to four years, claims Shrestha. He adds that this move is in line with the youngsters’ desire to be seen wearing branded wear. The youth of age group 20–25 are more inclined towards fashion and frequent his stores most, he says. 

Pricing Strategy

Most stores price their products at a minimum margin in order to ensure maximum footfall and provide value for money. It also becomes important for stores like U.F.O. and Dot Fashion Wear to make sure that their products are priced at par with their competitors in the market. 

Cooling Appliances

With yet another summer, major consumer durables players in the country are looking forward to a great season. Industry experts opine that the sales volume for summer appliances will see a growth of around 25 per cent this season. 

The likes of major electronic brands such as Bajaj, CG, Samsung and LG are upbeat about their sales prospects for the Baishakh – Asar (mid April – mid July) quarter. 

Rajan Sangpang, the Showroom In charge of CG Digital at UWTC in Tripureshwor, claims that though a home-grown brand, the quality of CG products is at par with international brands. “We are expecting a sales growth of 20–25 per cent at this store for the Baishakh – Asar quarter,” he says.

Nikita Thapaliya, Sales Executive with Him Plaza at Civil Mall, feels that the sale of fans at her store is bound to be good this summer. She says, “Bajaj fans at our store have been selling well since January, in anticipation of a long summer.” The plaza sells products of Bajaj and Himstar brands. 

“Our strategy is to focus on LG refrigerators from our dedicated stores in Minbhawan and Sundhara besides other outlets across Nepal,” says Sandesh Bhurtel, Assistant Manager at CG Electronics, who looks after LG brand in the company’s sales department. Though he feels that the market has become very competitive with a lot of brands vying for a stake, “Bringing in new ideas and sustaining business operations over a period of time will lead to success,” he believes. LG has been selling refrigerators in the domestic market for the last one and a half decade, while it has been present in the air conditioner segment for around 10 years. 

Broader Market Presence

Apart from its two authorised showrooms in the Kathmandu Valley, LG has over 275 distributors and dealers across Nepal to ensure penetration all over the country. Bhurtel attributes this to the growing demand for home appliances in cities and towns across Nepal, especially in the Terai belt. “Our outlets located outside the Kathmandu Valley are doing well due to the fast maturing market and we are selling more in towns outside the capital,” says Bhurtel. 

While most players have their primary focus on the Kathmandu market, the markets outside the Kathmandu Valley have developed well in the last few years and are catching up. “I believe that the changing market dynamics are beginning to alter the way marketers think and the towns outside the capital no longer take the backseat for their market strategies,” he comments. While refrigerators in the medium price range do well in smaller towns, top-end refrigerators still largely depend on the Kathmandu market. 

New Products 

A fast-growing brand like CG has introduced a new portfolio of energy-efficient models that include two each of single and double-door refrigerators, an air cooler, a showcase chiller and an air conditioner. 

A leading brand, Samsung,  is also growing in confidence and, as a result, has launched sale of air conditioners at its Civil Mall outlet as well. “Samsung is a tremendous brand and the first preference for many,” says Kalpana Bhattarai, Showroom In Charge of Samsung Plaza at Civil Mall in Sundhara. Samsung has four other exclusive stores in the Kathmandu Valley besides a number of outlets selling its products across the country.

Cool Food & Beverages

The summer season has the soft drinks giants, fruit juices, aerated drinks and ice cream manufacturers hitting the market with all they have. Summer is peak season for businesses dealing in drinks and food that offer relief during the hot weather. “We do a business of 500 bottles a day from this very shop during summer as compared to about 100 bottles per day during the winter season,” says Naresh Suwal, the second-generation proprietor of Ranjana Galli ko Purano Jana Soda Pasal. 

“We sell around 3,000 litres of ice cream per day on an average, in the summer season,” adds Arniko Rajbhandary, the Executive Director of Nepal Dairy Pvt Ltd, producer and marketer of the famous nd’s brand. 

During the period of seven to eight months from Falgun (mid February – mid March) till the time Dashain festival gets over, the ice cream industry registers a business of close to 12,000 litres per day, says Rajbhandary. “I am talking from the perspective of branded ice creams only,” he quickly adds, “As for the off season, the market is only about 30 per cent of the figure I just quoted.”

Rajbhandary claims that the ice cream industry has been growing at a steady 25 – 30 per cent each year and the growth of his own enterprise is in accordance with that. “Affordability is the key,” he declares. To drive home his point, he tells that nd’s has introduced ‘Phuchche Kulfi’ aimed at kids which is priced at Rs 20. “The 30 ml kulfi will encourage children to have quality ice creams at a price that suit their pockets.”

As for the branded soft drinks, the industry in Nepal is doing well and registering growth on an annual basis. However, the per capita consumption of soft drinks in Nepal is disappointing, claim industry insiders. The related companies look to drive consumption frequency and penetration by launching innovative and consumer-focused initiatives.   

Summer Destinations

The summer season offers business opportunities to high altitude destinations in the country where people seek retreat to beat the heat at low lying altitudes elsewhere. 

Prem Kantha Dhwoju, Managing Director of Dhulikhel Lodge Resort in Dhulikhel, says, “The business is okay at this time of the year and our occupancy rate is close to 50 per cent currently.” Badri Prasad Makaju, Managing Director of Hotel Chautari Paradise Inn and Hotel Green Valley in Nagarkot, also says that his two properties are enjoying over 50 per cent occupancy. 

Summer Packages

Hoteliers in popular getaways like Dhulikhel and Nagarkot have introduced packages especially for the summer season. Dhulikhel Lodge Resort offers 1 night/2 days package for Nepali tourists @ Rs 5,000 (inclusive of all taxes) for two and the offer is valid till July, says Dhwoju. Similarly, Hotel Chautari Paradise Inn in Nagarkot has the same package, however, it will only be applicable in June and July, informs Makaju. Both packages provide welcome drink, accommodation, dinner and breakfast on twin sharing basis. 

“While it’s hot in Kathmandu, people come to Nagarkot to enjoy the fresh air and cool environ here,” says Makaju. He adds that he and other hoteliers in the hill town have decided to target European tourists to promote Nagarkot as a destination which not only offers sunrise and sunset but also a lot of other activities. This strategy has been introduced in order to make tourists stay for at least 2 or 3 nights, he adds. 

Local Infrastructure

“We have requested the government to provide connectivity in terms of airline services and road connections,” says Pavitra Kumar Karki, President of Nepal Association of Tour and Travel Agents (NATTA). Once better connectivity is accomplished, he assures that the private sector can certainly facilitate local infrastructure such as hotels or bus services, as well as market the products to lure tourists.

Tapping Markets

Experts say that, from the tourism perspective of Nepal, the Indian and Chinese markets are growing. Domestic tourism  is also on the rise, which is a very positive sign.  “Nepalis have become more tourism oriented in recent times,” admits Dhwoju. 

“People from the Middle East and the Indians want to come to Nepal for shopping and entertainment purposes during summer but first, we must be able to offer what they want,” recommends Mihika Dhakhwa, Managing Director of Zets Holidays. She adds, “We are competing with countries in the region that are focusing heavily on tourism so it becomes even more important for us to develop the tourism sector in Nepal.” 

“The domestic tourist movement is bound to increase with time,” says Karki, and adds, “The overall environment of the country, notably the business environment, must improve so that people have the disposable income to spend on travelling.”

Makaju believes that political stability in the country is mandatory to guarantee tourism fortunes and the sector must be given the priority it deserves. Tourism entrepreneurs agree in unison that developing new products along with proper marketing of the same can make tourism in Nepal during the summer season a lucrative proposition. 

The enhanced lifestyle and high aspiration level of  Nepali people, the growing number of nuclear families and increasing affluence of  population – notably in small cities and towns – have resulted in a growing demand for summer products.