AS Deepavali approaches, local Indian traders have grown unhappy over the high number of bazaars and trade fairs with foreigners being held in major cities around the country.

Their biggest grouse is that these bazaars feature traders from India as well as small local entrepreneurs who sell cheaper and lower-quality Indian apparel, costume jewellery and sweets – items that are sought after ahead of the festive season.

Local Indian traders said the “uncontrolled” number of shopping events were put together by “irresponsible” organisers.

They said they could lose up to 80% of their revenue during the festive season to these events.

V. Malathi, who owns Maghna Store in Balakong, Selangor, said her business has been badly affected.

“Last time, (these events) were held only during Deepavali, but now they start months before. I think now there are at least four bazaars held monthly, meaning one each week, held by different organisers,” the 56-year-old told The Malaysian Insight.

“Businesses like ours end up paying so much in taxes for the goods, clothes and products we bring in from India and we have to sell them at prices that can give us some profit. This will cover the staff’s salary, rental and utilities. But when there are these carnivals and bazaars, people come and sell at a cheaper rate.

“With these carnivals and fairs, we are losing business. People who used to buy five to six items from us during the festive season are now getting one or none from us. Why? Because they are purchasing at a cheaper rate at these fairs,” she said.

The trade fairs organised by local event management companies were originally meant to showcase manufacturers from India, Pakistan and Bangladesh and introduce products like costume jewellery, handicraft and textiles to local traders.

However, they have changed drastically, with foreign traders selling directly to local customers.

Vasugi Auliar from Kulim, Kedah, who has been in textile business for almost 30 years, said thanks to the trade fairs, most of her inventory bought specially for the festive period were not selling very well.

“We will usually start our sale offers for Deepavali one month before, but we were unable to do so this year because there have been too many bazaars around, and they are held very frequently. Each carnival lasts up to five days.

“In this case, how can traditional businesses like us make any money? We are forced to close our shop by 6pm because people are not coming; they are going to the bazaars to purchase things there,” the 50-year-old said.

Vasugi said foreign traders selling goods for cheap was spoiling the market.

“We depend on Indian customers, whose numbers aren’t big, but when such bazaars take place, foreigners … sell goods for cheap because most who take up the space at the events are manufacturers or producers. They create an unstable market for us, and people go for the cheaper ones.

“In the end, local traders take a hit,” Vasugi, who is the owner of Auliar Pattamal Silk and Sarees, said.

Substandard goods

Vasugi said trade fairs were where foreign textile companies sell their substandard or rejected items for cheap.

She said local traders were offered stalls in some bazaars, but that they could not sell their products there.

“We are in the textile business. Imagine selling things in a stall. Where are we going to keep our stock? Where are we to display products?

“It may be useful for some businesses, but not all,” she said.

Vasugi said she usually made about RM100,000 during the festive season, but doubted she could reach that figure this year with all the carnivals being held.

She expected to lose 80% of her revenue this year.

Revathi Rajagopal, who owns Attack Sweets, said trade fairs were killing traditional businesses.

“I used to supply sweets, cookies and snacks to traders in Brickfields, Klang and Seremban, but the orders have not been up to the mark this year.

“Usually, around this time, I would have orders amounting to RM20,000, but this year it is bad because traders are reluctant to invest a lot on food items,” Revathi, who operates her business from Seremban, said.

She said most carnivals feature many sweet stalls, most of which operate independently.

“Sweets and cookies will be sold by maybe three or four people in the same bazaar, creating competition.

“Those attending carnivals normally purchase sweets there, so restaurants, cash-and-carry shops or mini markets cannot sell their sweets.

“Unsold food products will expire and we as suppliers have to either replace the stock or refund buyers. We are the ones facing huge losses,” the 36-year-old said.

The three traders said their businesses did well during the Covid-19 pandemic, when international gates were closed to foreigners.

Limit number of carnivals

The traders said they were only opposing foreign traders who were “spoiling the market”.

Vasugi welcomed carnivals but urged organisers to limit them to one or two major events per year.

“Before this, it used to be one or two yearly, but now there is just an uncountable number of bazaars weekly.

“We feel certain organisers are just exploiting the situation,” she said.

Malathi also said she was against foreigners hawking their wares at bazaars.

“Foreigners are making good income through this. Why not just hold a basic bazaar, allowing locals to do business instead of foreigners?”

She urged the authorities to stop issuing permits to event management companies that import foreign traders to the country. – October 20, 2023.