NATIONAL8 (Spotlight Weekly]

Shop Till You Drop

Supermarkets and street vendors compete to give customers a wider range of choice

By AKSHAY SHARMA

"The supermarkets have made my shopping as compact as a package tour," says Saloni Shrestha of Naya Bazar. The crowded video game parlors and the busy computer screens tell it all. The trend of consumer-driven commerce has caught up with Kathmandu. Even noodles and Coca-Cola come with promises of prizes. The people have fallen for the liberal market policy the government adopted a decade ago. Some experts suggest that the people of Kathmandu and other cities could soon find themselves adopting a ghetto-like lifestyle, using supermarkets to save time and the trouble of bargaining.

A departmental store : Convenient for one-stop buyers

The buyer’s market has firmly established itself on the streets, too. "The hide-and-seek between street vendors selling jeans, T-shirts, sports shoes around Ratna Park and khaki-clad metropolitan police makes you feel sorry for the sellers," says Anand Pant of Gyaneshwor. Such public sympathy comes amid an upswing of business on the streets.

The cheaper version

Street vendors can be found almost anywhere in the city. Hong-Kong Bazaar (Exhibition Road), Mahabauddha, Gangabu Bus Park are among the ideal places to buy cheaper goods. "Those are the places where the people bargain the most," says Ajay Shrestha, who runs a shop opposite to the street vendors at Dharahara.

The vendors have their share of good and bad days. "Nepal bandh is when our business shoots up," says Babu Kaji Tamang of Damauli, who makes a living selling clothes in and around the historic monument. "That’s our prime time because the metropolitan police do not bother us. On other days, we have to be constantly ready to pack up and run from the cops."

Shop owners acknowledge that bargain deals available on the streets. "A pair of Levi’s pant that costs Rs 800 or Rs 900 can be bought at a fairly reasonable price from these vendors," says Amir Ratna Tuladhar, who owns a clothing shop at Kamalakshi. "The quality is the same. Half of the customers go to places where you can bargain. The street vendors are our main challengers."

As expensive it gets

Roadside supermarket : Growing attraction

Supermarket operators provide a different consumer profile. "The young people that usually visit my place want to buy everything original," says Sunil Manadhar of Roots, situated at the Stock Exchange Complex at Putali Sadak. "People who just want a Xerox copy of brand names go to the street vendors. People believe that goods in supermarkets and products that cost more are original and better."

Some experienced buyers can detect the comparative advantages on the streets. "You can get the same stuff on the streets for one fourth of what you would pay in the store," says Sunil Joshi. "I bought some clothes and other stuff at Hong Kong Bazaar before I went abroad for studies. If I were to buy the same goods in the United States it would cost me ten times more, and the items you get there are mostly made in China, Nepal or other countries."

Laments

The street vendors have left some store owners with piles of unsold items. "I have 500 pieces of jackets because people can get the same thing much cheaper on the sidewalks and street corners," laments Gyenche Nagarkoti, who owns a clothing store at Pashupati Plaza. "We can’t sell these items cheaper because we have high rents to pay."

The price differentials are stark enough. "My friend bought a Yashica camera for Rs 20,000 before going abroad for studies and the price sounded reasonable to us. As I was walking around Mahabauddha later, I saw the same camera at one of the Chinese-goods stores there," remembers Rojit Shrestha of Maharajgunj. "I was shocked to find that the camera cost only Rs 14,000."

Once upon a time

Sama Joshi sees the long way consumers have traveled in a decade. "Once Suraj Arcade, popularly known as Dragon House, at New Road used to be popular with shoppers. Because of the mushrooming of supermarkets there seems to be no reason to go there these days."

Anil Man Shrestha, who owns a shop at one of the oldest shopping complexes in Kathmandu, Bishal Bazaar, in New Road, says most people go to him for T-shirts, jeans, and shoes. "People go to supermarkets because the prices are reasonable. The younger people tend to give more priority to shoes. Most youngsters prefer shoes made from England and Italy. They are looking for quality shoes and the products they get here are good and strong."

Pramesh Shrestha of UFO in Kamlakshi says prices are fixed at his store and customers generally bargain for a 10 percent reduction. "We haven’t been affected by the street vendors because we already have a reputation in the business."

Habits

Sunil Maharjan of Roots, which caters mainly to the upper or middle strata, sees a clear class distinction in terms of the tendency to bargain. "We expect people from the upper class to bargain because they have been to more expensive places and have shopped in places like Bangkok and Hong Kong. "Middle class customers don’t bargain as much, maybe they tend to feel embarrassed."

The numbers of supermarkets, complexes, or plazas — whatever you call them — have grown exponentially. And every big store has computerized billing. Binod Shrestha, who runs a shop in New Road says, "Because of Value Added Tax data, customers now have started to ask for receipts. Computers have become vital. But people from the middle class tend to ignore the receipts."

Contrast

With the rise in retail outlets, prices have fallen. "Sunglasses used to cost Rs 1,000 before," remembers Sulabh Giri. " Now better quality sunglasses can be found for between Rs 150 and Rs 250. There has been a growth in the quality and quantity of the items available."

"I paid Rs 1,500 for a pair of jeans two years ago," remembers Chiring Lawrang Sherpa. "Now the same thing costs about Rs 300. Where would we be if the price of food came down as drastically?"

"Those who have the tenacity to bargain end up paying less," says Asim Rana. "The shopkeeper once demanded Rs 1,200 for an item, but I brought the price down to Rs 700."

Binod Shrestha of New Road says he usually doesn’t let people bargain. "But the customer being king, we tend to defer to their wishes."

Tactics

Some consumers engage in games with the salespeople. "Every salesperson is a kind of psychologist. So I tend to divert my interest towards another uninteresting item to persuade the shopkeeper that I am not interested in what I am," says Kiran Aryal. "By this tactic I have bought so many items at reasonable prices."

Others are put off by the misleading offers. "I saw this sign which said 70 percent off. When I went in to buy, I ended up getting only about 20 to 50 percent discount,’ remembers Arvind Timilsina.

Buying is an individual decision, says Chewang Sherpa, a trekking guide. "It’s your decision whether you want to buy things cheap or expensive. I bought a shoe from the Hong Kong market and went on an Everest trek. The shoe didn’t last a week. Another time I went to a supermarket and bought some shoes. They didn’t last long either when I went around the Annapurna trail."

Trends

Buying trends have also changed. "Before foreigners were the main buyers of curios, handmade products and Nepalese carpets. Now, Nepalese seem to be more interested in these," says Raju Maharjan, who runs a shopping complex in Thamel. "Thamel is supported by Nepalese. They buy shirts, T-shirts, trousers, anoraks because they are cheap and have famous brand names on them."

"I like the products in Thamel because they are cheaper, easy to wear, look good, comfortable and, above all, since they are made in Nepal. I have a patriotic attachment to them," says Abhishek Shahi of Balaju.

Misconception

Kastamandap Supermarket at Kamaladi came up nearly one and a half years ago. "Tourists or foreigners are merely interested in tourism products. Indians and Nepalis are more interested in clothes," says Prasanna Shrestha of Kastamandap. "There is a misconception that goods here are expensive and most people hesitate to come. Customers who have come once have not hesitated in coming back."

Studio Hollywood, across the street from Kastamandap, opened nearly three years ago. "About 75 percent of the Nepalese customers that come here are interested in clothes," says Sukra Raj Bajracharaya. "In the peak season, 80 percent of our customers are Indians. Everybody likes to bargain so we give a 10 percent discount to regular customers."

Mandala Arts inside Studio Hollywood was established 20 years ago. They specialize in selling hand-painted material. Rina Shrestha says, "Half of our Nepalese customers prefer T-shirts, while 50 percent of Indians and foreigners are interested in Disney toys."

With such a diverse range of super-stores competing against each other and with street vendors, consumer dynamics has become an interesting subject to see in action these days.