As Eid shopping gained momentum over the past week in major cities, many shoppers were left scratching their heads over the prices of clothes.

With some outlets charging Tk 100,000 if not more for clothes, namely panjabis, the outfit of choice for the festive occasion, the issue also gained traction on social media.

Earlier this week, Bangla daily Prothom Alo reported that a fashion outlet in Dhaka was selling a panjabi for as much as Tk 4 lakh.

Such a scenario begs the question: Why are the prices so high and what exclusive features make them attractive to buyers?

Ask sellers and they will cite various reasons: premium-quality fabrics, intricate designs, handcrafted embroidery, and sophisticated dying processes.

For instance, Anzara, a premium fashion store in the capital's Banani, is selling panjabis for prices between Tk 4,500 and Tk 95,000. It also sells women's kaftan saris, ranging from Tk 14,800 to Tk 16,800.

Asked about the high prices, Anzara's Public Relations Manager Nowshin Nawar said the clothes are made with premium-quality fabric and feature intricate designs.

"Embroidery is handcrafted rather than machine-made, and most of the fabrics are imported," she said, adding businesspeople and high-income earners are among their buyers.

In the same area, another outlet, JK Foreign, is selling panjabis as well as three-piece dresses for women for as much as Tk 60,000. The store has saris priced between Tk 35,000 and Tk 150,000.

Salespersons from multiple stores said that during Eid, many customers prefer Indian and Pakistani outfits. To meet this demand, brands stock up on premium clothing imported from the neighbouring countries.

Interviews with officials from high-end brand outlets last Friday revealed that before the July uprising, which ended with the ouster of the Awami League government in August last year, wealthy businessmen and political leaders were the primary buyers of these extravagant outfits.

However, after the political shift, 90 to 95 percent of these customers have disappeared, leading to a significant drop in luxury clothing sales.

Although the primary buyers remain businesspeople, politicians, and high-level executives, most customers currently prefer outfits priced between Tk 5,000 to Tk 20,000.

Soriful Islam, in charge of Alif-Libas Attaqwaa's Banani branch, said the high prices derived from premium fabrics and skilled artisans.

"The panjabi that costs Tk 85,000 takes about a month to make and is produced only upon advance order. Its accessories are imported from China," the official said.

Mohammad Abu Sayeed Saddam, manager at Abaya and Gown in Banani, said their products are either made in-house or imported from Dubai and China.

He said the high-priced items are made from muslin fabric. "Our primary customers are middle-class women," he said, adding that Eid sales have been strong so far.

Similarly, Md Hasnat Ali, manager of AZWA, a premium fashion and lifestyle brand for women, said prices mainly depend on fabric and design.

For exclusive sarees and lehengas, they take advance orders and can produce them at any price range. This Eid, products in the Tk 5,000 to Tk 10,000 range have been the bestsellers, he said.

Maria Hossain, a jobholder at a multinational company, was looking through the catalogue at a branded shop when this reporter approached her.

Asked why she had chosen the particular outlet, she said, "Apart from matching my taste, the quality of the product here is much better. So, I don't mind buying it for a higher price."

Khalid Mahmood Khan, a director of Kay Kraft, a leading local clothing brand, said high prices are largely driven by perceived value.

"This is a psychological factor, and the actual production cost isn't the only consideration," he said.

"If a business can successfully sell an item at a high price, it means they have managed to convince customers of its creative and aesthetic value.

"In such cases, it's not about balancing production cost with selling price; rather, it's about whether the brand can make customers accept the value they are offering."

What do analysts say?

Fakir Muhammad Munawar Hossain, director of operations and laboratories at the Directorate of National Consumers' Right Protection, said that in a free-market economy, there is no legal framework for setting prices.

"The government regulates the prices of only a few essential commodities, which is an exception."

If a buyer feels cheated after purchasing a product, they can file a complaint, and action will be taken against the brand if necessary, he said.

Similarly, Wajid Hasan Shah, a member of the Bangladesh Competition Commission, said this is a niche market with limited competition, which is why prices can be exceptionally high.

Selim Raihan, a professor of economics at the University of Dhaka, said that when inequality is high in a society and wealth becomes concentrated among a certain class, they seek premium products to distinguish themselves from others.

This drives demand for such products.

"If these individuals cannot find these products in the local market, they will look for them abroad," he said.

He further said that there are significant questions about the high-priced products sold in Bangladesh.

"Are the prices truly justified? Sellers may not always have a clear answer," he said, "In the absence of proper regulatory oversight, some businesses take advantage of the situation."