THE economic reports forecast good times ahead for businesses in 2018 but retailers in the fashion industry are not taking their chances and are exercising caution by keeping their stock levels low.

Many have expressed fears that business will continue to dip this year as prices of goods remain high, forcing consumers to prioritise spending on necessities over clothing and fashion.

Siti Murni Abdul Aziz, founder of a business designing and selling Muslim headscarves, said she is limiting the volume of headscarves for sale at her shop, and selling unique designs to try to ensure brisker sales.

“We sell limited editions. We understand the economy is uncertain. So, in order not to have stock pile-ups, we limit the quantity. One design cannot have more than 10,000 pieces,” she told The Malaysian Insight at her boutique in Bangi, Selangor.

“If there is a large order, then we will decide to produce more headscarves.”

In a challenging economic climate, it is crucial for retailers to conduct their own market research and obtain feedback from customers, she said.

Siti Murni’s products have created a name for themselves due to the design which doesn’t involve the use of pins to fasten the headscarves together.

“Our headscarves solve the problem of some women who may be allergic to metal. Actually, that was also my problem because I have sensitive skin. When I wear headscarves with pins at the chin, there will be red marks.”

She said she was thankful that her regular customer base has not been badly affected by the uncertain economy. 

Malaysia’s economy beat market expectations in 2017 with the first three quarters of the year growing at 5.6 to 6.2% year-on-year.

Economists remain positive that the country will continue its growth momentum into the new year, with growth around 5.5% supported by domestic activities and exports.

Last Friday, the ringgit also broke below the psychological level of 4.00 to the US dollar for the first time since August 2016.

However, despite the seemingly rosy economic outlook, consumers are bracing for tougher times in 2018 as the price of petrol is expected to continue rising, leading to steeper prices of basic goods and services.

To deal with an expected drop in business, online fashion retailers are also changing their marketing strategies to cope with the more prudent spending patterns.

Bymadeeha is choosing to sell more casual clothes in basic colours which they believe will be more popular as they are cheaper and easier to match.

“For 2018, we have already designed more casual clothes and baju kurung. The economy in 2018 is expected to be slow, and everyone is looking to buy clothes which can be worn everywhere.

“So, for that, plain clothing are more suitable and the pricing must be as low during festive seasons. For each design, I’m also only limiting it to 200 pieces,” said founder Normadihah Ibrahim. 

“For every product, we don’t need many colours. Five basic colours are chosen to match all skin colours.

“While colours do follow a trend, for customers aged between 24 and 48, they usually prefer light blue and maroon,” said the mother-of-two.

Alia Omar, owner of a boutique, is also playing it safe this year, by limiting stock volumes and producing according to demand.

“For my own brand, I will design but the quantity is not much. For each colour, there are about 20 pairs. We won’t make more once that’s sold off, unless there’s an order.”

The mother-of-five said she is also trying to increase revenue by selling lace and renting out part of her store to other retailers.

“The economy is still uncertain, when people spend, they will have to think twice. To add to my earnings, I also sell lace at my boutique.

“For the lace, I will order in very limited quantities from China. In times like these, we can’t take risks,” she told The Malaysian Insight. – January 9, 2018.