Home ›› 27 Oct 2021 ›› Editorial
It is good to note that local brands hold 70 per cent of the domestic air conditioner market share. According to an exclusive report published in this newspaper the local air conditioner market has been growing at an impressive rate of 20 per cent annually for the last few years. The yearly sales volume has reached more than Taka 16,000 crore, an imposing sum indeed. Once thought of as luxury items meant only for the rich and the elite, ACs are becoming increasingly affordable to a large segment of the population. This phenomenon is a direct result of increased local production and assembly of air conditioners. The market is expected to grow even further in the coming years because of rapid urbanization that the country is witnessing. Also the significant increase in per capita income of the people is prompting many people to invest in ACs. The increase in per capita income has resulted in relatively high disposable earning of people in cities and they are buying ACs in greater numbers. Rising incomes are making air conditioners more attainable, while rising temperatures are making them a necessity.
The best technology we have for dealing with heat has been the air conditioner. Air conditioners run refrigerant through coils in a loop. The refrigerant absorbs heat from inside a room as it turns from liquid to gas, then deposits heat outside as it’s condensed into liquid again. Because cooler air holds less moisture, water vapor condenses on the conditioner’s coils, lowering the humidity. Temperature in the long summer months is reaching new highs each year. The ceiling fan running on full speed is simply not enough to beat the heat for many people. Air conditioner is the answer and it can safely be said that the market will expand even further. New features are being added to recent models of ACs that save electricity as well as purify the indoor air from harmful bacteria and dust. There is a need for a basic level of thermal comfort in order for people to be productive. And they should have access to that level of comfort.
The Covid-19 pandemic has affected most of the markets across the world. The Bangladesh air conditioner market is no exception. It has also suffered a downfall during this timeframe owing to the complete nationwide lockdown in the country to contain the spread of coronavirus which has interrupted the production and hindered demand for air conditioners. However, with the lockdown no longer in place, the sector has bounced back admirably. The industry should also thank the government's continued support and increase in production of electricity.
Increasing confidence among the customers about Bangladeshi made or assembled air conditioners is an important factor behind the sector’s impressive growth. People in the past preferred to buy only foreign made air conditioners, but now consumers are interested to buy locally manufactured or assembled ones. After-sales service is an area that has helped boost customers' confidence. Quality, durability and impressive appearance of locally made ACs have also played an important role in the market’s expansion, especially for segmented customers.
Bangladesh has seen an almost miraculous boom in the electric and electronic goods industry. People in increasing number are buying these goods produced in Bangladesh. The facility to buy ACs on installment basis through credit cards is another motivating factor increasing its sales. Industry insiders believe that there is a huge export potential for these products even the assemblers and producers are considering export of these products. Reducing dependency on RMG and other traditional products through export diversification is one of the main challenges faced by Bangladesh at present. Electric and electronic goods can usher in a new era to add to the export basket if proper policies are put in place.
As stated earlier, as the buying power of the people increases, the air conditioner market will grow. However, there are plenty of challenges to turn assembling industries into full-fledged manufacturing units. The sector needs continuous value addition, establishing backward linkages and a structured policy. Simplification of policies is strategically important for sustaining and welcoming new companies to meet the burgeoning demand for air conditioners in this country.
