Apart from complaints of soaring prices and unease over the economic situation, some have also cited the increasing preference for online shopping for the slower-than-expected increase in sales at brick-and-mortar outlets.
The Chinese community will usher in the Year of the Dragon on Feb 10.
Nonetheless, traders remain hopeful, pointing out that very often, people wait until the very last minute to shop for these items.
For 36-year-old Low Yuan Yee, who sells paper decorations adorned with Chinese script touting good luck and prosperity for the new year, rising prices and worries about the economy have changed consumer behaviour.
She said this change began with the introduction of online sales years ago.
“Apart from the seasonal peaks during festivals, the customer base has contracted over the years primarily due to the surge in online shopping,” Low, whose shop is located in Kuala Lumpur’s Chinatown, told FMT Business.
She said the paper decorative items that used to sell at RM1 to RM2 previously are now selling at 5% to 10% more.
Low claimed that other businesses are also seeing a drop in sales.
Another business owner, who wanted to be known only as “Hoh”, said the prices of local Chinese New Year delicacies have risen by as much as RM2 per packet.
Hoh, who sells such delicacies from his shop on Petaling Street, Kuala Lumpur, said his assortment of local condiments are now selling at RM20 to RM30 a packet.
He attributed the price increases to the current economic challenges.
Hoh’s business, which was begun by his family in the 1930s, is deeply rooted in the community.
The offerings of local-only products highlights its legacy as a family-run enterprise.
Despite the current challenges, Hoh remains optimistic, anticipating a boost in sales as the Chinese Near Year draws closer.
‘Shrink-flation’ rather than inflation
Lee Sheung Un, who shops occasionally, said that while it may not be obvious, some traders have opted to sell items that are of lower quality or in smaller quantities to maintain the same prices.
“Rather than inflation, consumers may be experiencing ‘shrink-flation’,” he told FMT Business.
He said costly items such as abalone and oysters are a must for some families, but his folks do not often buy such items even for special occasions.
Online shopping has also been cutting into the Chinese New Year business of traditional shops.
Lee said smart online shoppers have been able to find great savings but they have to put in a lot of effort to hunt for the best deals and to amass “coins” or “tokens” that entitle them to discounts.
He also cited a recent survey that shows the promise of improved security has also drawn many to shop online.
“This convenience is unbeatable, especially if you want to avoid the large crowds during festive seasons,” he said.
But Lee still prefers to go to the local hypermarket or store to look for fresh ingredients.
Another consumer Kimberly believes e-commerce marketing campaigns during festivals such as the Chinese New Year have helped to encourage spending, thus boosting the economy.
“In any case, people tend to be more generous during the festive seasons,” she told FMT Business.
However, she said, it is also advisable to prioritise essentials over non-essentials.
“Some people can easily go overboard, lured by the attractive promotions and end up spending too much,” she added.