Low Disposable Income Triggers Bleak Hamper Patronage

Despite dealers flooding shopping malls, merchandising stores and retail outlets with hampers for the 2022 Christmas and New Year celebrations, low disposable income of Nigerians has clipped patronage, LEADERSHIP has learnt.

Similarly, the slump in sales of hamper by dealers is linked to harsh economic realities and the tightening monetary reforms.

Manufacturers, operators of Small and Medium Enterprises(SMEs), institutional players and various service providers always look forward to the fourth quarter of the year, particularly December, to deliver hamper gifts to to companies and individuals who which to reward their consumers and clients.

However, this is not so this year as many offices, homes and individuals have decried their declining state of purchasing power to meet certain needs and obligations around them, including purchase of hampers.

The demand and profitability for hamper business has waned drastically such that the harsh effect of multidimensional poverty has depleted domestic income, working capitals and that, under such condition, individuals must tighten their spending power.

Mrs. Sade Afolabi, who sells drinks on a large scale, told LEADERSHIP that sales have been slow compared to previous years as she is yet to experience the expected hike in demand of hampers, saying, there is still a large volume of unsold goods in her stores.

“Usually, by now, the demand for products will have doubled but that is not the case, and some of my customers that usually buy in really large quantities reduced their order,” she said.

Mrs. Funmi Ogundele, who sells retails gift items during the festive season said the demand for hamper has been low. She recalled that as early as the first week in December 2021, she had a long stretch of orders for souvenirs and hampers.

“Things are also more expensive, which has increased the prices of products and services but I am hopeful that if people do not order for Christmas, they will order for the new year,” she said.

Service providers in the aviation sector such as travel agents are also not left out of the decline in demand. To cut costs, Christmas travellers are bypassing local travel agents to book their return tickets using their dollar cards.

“A lot of people are still travelling back for Christmas but sadly, the tickets are not being issued by us. We are not selling tickets, yet flights are fully booked for Christmas. We are really losing out this period,” she said.

Sabina Uwadiae, a small-scale seasoning and spice manufacturer, said, when compared to the previous year, demand has slowed, although, people are still patronising but it is relatively very low compared to previous years where we had lesser inflation in the market.

“Some inputs have been very scarce and our production cost has increased, yet the demand has not been encouraging unlike before,” she said.