Poll merchandise retailers hit as parties prefer wholesalers in Maharashtra

The retail market for election campaign materials in Maharashtra is experiencing a significant slowdown, with many long-standing shops struggling to stay afloat.

The shift in procurement practices by political parties, which now source materials directly from wholesalers in Surat and Ahmedabad, has left many retailers grappling with reduced demand and shrinking profit margins.

"Political parties now procure campaign materials in bulk, well in advance for elections, directly from wholesalers in Gujarat, and distribute them to candidates. This has led to a significant decline in retail demand," said Yogesh Parekh of Parekh Brothers who runs a shop in Lalbaug area of Mumbai.

Parekh brothers have been operating the shop selling poll merchandise in Mumbai's Lalbaug over the last 75 years.

He explained that the landscape of the business has changed drastically in the past 5-6 years.

Campaign materials such as flags, scarves, caps, wristbands, and turbansonce popular among political workers and supportersare now primarily supplied through bulk orders.

Parekh noted that retailers now only see foot traffic when party workers run short of specific materials during rallies or gatherings, often due to larger-than-expected crowds.

The market in Mumbai's Lalbaug area, near Chinchpokli railway station, used to be bustling with demand, with 18-20 shops offering a variety of campaign merchandise.

But now, according to Parekh, the over-saturation of stores, combined with reduced demand, has left many retailers struggling.

"There are more shops now, and fewer customers. The demand has gone down drastically," he added.

Jain Bhai, owner of National Dresswala, a shop established in 2008, highlighted how retailers are facing the double blow of reduced sales and shrinking margins.

"The majority of customers are now sourcing materials in bulk from manufacturers, which means we have to cut our margins just to stay competitive. This has left us with little or no profit, and it's becoming increasingly difficult to sustain the business," he said.

Though the election campaign materials business is seasonal, certain items like flags continue to see demand throughout the year, especially during political rallies or commemorative events like leader's death anniversaries.

However, many shops in the area are diversifying to survive.

Shree Radhe Krishna Dresswala's Tejesh Patel said the shops are trying to survive by providing decoration materials for festivals and birthdays, engagements, and marriages among others.

"The sale of election campaign material has a limited demand, therefore, to sustain business most shops also provide fancy dresses and jewellery on rent," he said.

Mitesh Joshi of Ashapura Dresswala, in business since 2011, said some shops have been forced to close down or pivot to entirely different sectors.

"Many shops that once focused solely on election materials have either shut their doors or sold off their inventory because it's no longer profitable. We, on the other hand, have diversified into providing fancy dress costumes, jewellery rentals, and event decorations to remain relevant year-round," he added.

Joshi said they are sustaining by providing costumes, jewellery and festivals on rent.