Air conditioner is the top-selling dwelling equipment in Bangladesh this Eid-ul-Fitr as shoppers look to beat rising temperatures.
April, Might and June are the height season for the shops retailing ACs because the temperature rises from March. About 90 per cent of the ACs are offered through the quarter.
“AC has been the most-selling merchandise amongst all dwelling home equipment forward of Eid,” stated Md Manzurul Karim, common supervisor of Esquire Electronics, the only real distributor of Japanese electronics manufacturers Common and Sharp.
Gross sales have elevated by 15-20 per cent thus far in 2022, in comparison with the identical interval in 2019, he stated.
An official of Singer Bangladesh echoed Karim. The corporate’s AC gross sales have gone up by 10-15 per cent, he stated. “Gross sales are getting higher as days go.”
In Bangladesh, ACs was once a luxurious even a decade in the past and solely the prosperous and upper-class may afford them. Nevertheless, with rising earnings prior to now one decade, affordability has elevated.
“You’ll see much more households buying ACs. And most of their alternative stays Samsung,” stated Shahriar Bin Lutfor, director and head of enterprise of shopper electronics of Samsung Bangladesh.
In line with Saikat Azad, advertising and marketing supervisor of Transcom Digital, ACs within the worth vary of Tk 110,000 to Tk 115,000 are promoting extra.
Manufacturing facility gate deliveries of ACs have elevated by 98 per cent in comparison with 2019, stated Tanvir Rahman, chief enterprise officer of Walton Air Conditioner.
“In comparison with 2019, our retail progress has elevated by 157 per cent until April,” he stated, including that ACs within the vary of Tk 46,500 to Tk 67,500 are excessive in demand.
As Eid attracts nearer, Truthful Group can also be receiving a better response.
“This yr, we have now set a goal to promote 30,000-40,000 models of ACs. Our gross sales progress is kind of good,” stated Mohammed Mesbah Uddin, chief advertising and marketing officer of the corporate.
The precise gross sales knowledge on the AC market is tough to come back by.
Retailers say the gross sales of ACs will attain 5-6 lakh models in 2022 and the market dimension will develop to Tk 4,000 crore.
The market has expanded by 23 per cent in comparison with a yr in the past, Lutfor stated.
AC gross sales begin selecting up in February and peak round April and Might. This yr isn’t any totally different.
“Moreover, Eid-ul-Fitr has pushed up gross sales. We hope to proceed this pattern until October,” Lutfor stated.
Samsung has slashed AC costs by 15 per cent to 17 per cent from a yr in the past, which helped it put up 212 per cent gross sales progress from final yr so far.
“We see scorching warmth this summer season. Clients are all invited to our shops in the event that they wish to quiet down this summer season,” he stated.
As a result of enhance within the worth of uncooked supplies owing to greater transport prices and provide chain disruptions, the worth of ACs has gone up in Bangladesh by as a lot as 5 per cent
“As a result of worth benefit, there’s a distinct enthusiasm for Walton ACs among the many center class. Other than this, the higher class can also be exhibiting curiosity in shopping for Walton ACs due to some distinctive options,” stated Tanvir Rahman.
Total, dwelling equipment makers and retailers are registering higher gross sales this yr in comparison with the pre-pandemic degree due to receding coronavirus caseloads. Gross sales had hit all-time low within the final two years due to the pandemic-induced earnings losses and financial slowdown.
Often, dwelling equipment makers and retailers put up greater gross sales within the days resulting in Eid-ul-Fitr, the largest spending season.
Speedy urbanisation, a rise in per capita earnings, and the increasing center class have propelled the expansion of the house equipment market in Bangladesh.
The foremost gamers within the dwelling equipment market are Walton Group, Transcom Electronics, Rangs Electronics, Rangs Toshiba, Singer Bangladesh, Finest Electronics, Pran RFL (Imaginative and prescient), Esquire Electronics, and Electra Worldwide.
International firms corresponding to Samsung, LG, Common, Sharp, and Whirlpool are additionally fashionable.
The market dimension for dwelling home equipment is about Tk 10,000 crore and the phase is rising at a tempo of 20-25 per cent yearly.
Moreover ACs, fridges and ovens have additionally been among the many top-selling objects. The necessity to warmth up meals throughout suhoor of the fasting month of Ramadan has pushed up the gross sales of ovens.
“The gross sales of ovens have doubled in comparison with two years in the past,” Karim added.
Gross sales of fridges have elevated by 5-6 per cent in comparison with the 2019 degree. The demand for the objects priced from Tk 70,000 to Tk 80,000 is on the rise, he stated.
Singer Bangladesh’s fridge gross sales are up 10-15 per cent, stated the official of the corporate.
Walton’s fridge is the top-selling product this Eid. The corporate can also be posting outstanding gross sales of ACs, TVs and different dwelling home equipment, stated Mohammad Firoj Alam, its chief advertising and marketing officer.
“The gross sales of Walton merchandise have surpassed the pre-pandemic ranges.”
Truthful Group’s Mesbah says fridges are additionally promoting nicely. In comparison with 2019, the gross sales have elevated by 5-7 per cent.
With a view to drive up gross sales on the event of Eid, retailers have provide you with equated month-to-month installment amenities, alternate gives, reductions, and cash-back amenities.
Retailers say the costs of dwelling home equipment on the retail degree have gone up for the reason that manufacturing value has elevated for the rise within the costs of uncooked supplies and better transport fees brought on by pent-up demand and provide chain disruptions.
For instance, shoppers need to 10 per cent extra to purchase dwelling home equipment corresponding to ACs.
The transport value has surged by 4 to 5 instances, whereas the US greenback conversion fee has gone up, Azad added.
“We’re engaged on the right way to develop native manufacturing in order that we are able to provide dwelling home equipment at lowered costs.”