PETALING JAYA: Deepavali is just over two weeks away but Indian traders are seeing slower than usual business, as rising living costs and online platforms reshape how Malaysians prepare for the Festival of Lights.
“It’s not really crowded now because it’s not peak yet, coupled with the rainy season,” says Athedthan, who runs a grocery store in Little India in Brickfields.
However, he admits he sees challenges ahead.
“We are losing a lot now. Our main threat is social media. To sell goods online, I don’t have to pay anything with no overheads. For retailers like us, our profits go back into many expenses,” he said.
The increasing cost of essentials has also hit customers hard, particularly those buying items for festive snacks.
“People have less disposable income, as prices of products are increasing,” Athedthan said.
The jewellery sector, often considered a key part of Deepavali spending, is not spared.
Datuk Abdul Rasul, president of the Malaysian Indian Jewellery Association and vice-president of the Malaysian Goldsmith Association, said while demand still exists, buying behaviour has shifted.
“People are willing to buy gold and jewellery even though prices are up by 30% to 40% due to tariffs and inflation,” he said.
“Youngsters think of gold and jewellery more as a personal style or an item to show off, rather than an investment.”
The rising price of gold also makes it difficult for lower-income buyers to invest in the precious metal.
“If the starting salary is RM1,700, how can they afford it if a few grams costs RM1,200?”
Textile retailers, usually the busiest before Deepavali, are facing an equally tough season. Many shoppers are browsing but are hesitant to spend.
“Most visit different shops and window shop before making a decision. Customers don’t make their purchases straight away,” said Datin R. Maheswary, secretary-general of the Malaysian Indian Textiles and General Stores Association.
“Business is definitely slower this year. Previously, sales would start around two months before Deepavali. Now, with 16 days left until Deepavali, we haven’t started to see a crowd yet. Most are still window shopping.”
Budget-conscious buying is evident in spending limits.
“Many people are setting their budget at between RM100 and RM150. Very few go above RM150.
“People’s purchasing power has gone down,” she said.
Then, there is the online sale of clothes.
While many younger shoppers feel comfortable buying online, Maheswary said the experience of festive shopping still matters.
“The material and size are very important, especially for Punjabi suits. Many youngsters still come in to try out clothes and see if it looks good,” she said.
For now, the story is clear: rising costs, shifting habits and online competition are frittering away at traditional businesses for Deepavali.
