Home ›› 26 Oct 2021 ›› Front
Bangladesh’s air conditioner sector hit hard during the pandemic is bouncing back thanks to affordable local brands that hold 70 per cent of the domestic market share.
This market has been growing around 20 per cent annually for the last few years, as yearly sales volume reached more than Tk 16,000 crore, says the Bangladesh Air-conditioning Equipments Importers Association (BAEIA).
The National Board of Revenue data show that the country’s air conditioner market saw a boom in FY19-20, importing 5.88 lakh compressor units (a key component) worth Tk 362 crore that year, compared to 3.34 lakh units worth Tk 165 crore in FY18-19.
In FY20-21, the industry imported only 2.96 lakh compressor units worth Tk 178 crore – almost half of the previous FY’s imports. Industry insiders say the sector is gradually recovering with increased development activities and people’s purchase capacity.
Many consumers no longer consider air conditioners a luxury. The rising average temperature in urban areas – especially in Dhaka – also necessitates installing air conditioning systems, they said. Local manufacturers say domestic brands are more affordable than imported ones and banks also offer credit instalment facilities. Besides, locally made inverter air conditioners help consumers save nearly 50 per cent of electricity costs. There is high demand for locally manufactured air conditioners among consumers because of these factors, they said.
Md Kholilur, brand manager of Walton Air-Conditioner, one of the most popular brands in Bangladesh, told The Business Post that the number of middle-class people purchasing ACs has increased after the pandemic.
“Most people are no longer reluctant to spend money for comfort,” he said.
Supreme Air-Conditioning Company’s CEO M Lutfar Rahman said the pandemic had choked the market’s growth. “But it is bouncing back quickly thanks to high demand among consumers.”
Lutfar, also the president of BAEIA, said local manufactures hold nearly 70 per cent of the market share.
What do key market players say?
Walton currently holds 30 per cent of the sector, up from 21 per cent in 2019, the company’s Product Manager Mahfuzul Alam told The Business Post.
Another key player, Vision Electronics of Pran-RFL Group, holds more than 10 per cent market share.
Director (marketing) of Pran-RFL Group Kamruzzaman Kamal said consumers now treat air conditioners as a necessary product, not a luxury item.
“The market is competitive, and consumers prefer affordable air conditioners. We are optimistic about capturing 40 per cent of the market next year if our current growth remains steady,” he said.
Six to seven years ago, a one-ton AC cost more than Tk 1 lakh, but local manufacturers now offer ACs at Tk 35,000-40,000.
“Buyers prefer inverters ACs that save nearly 50 to 60 per cent electricity,” said Md Kholilur Mony, brand manager of Walton Air-Conditioner.
General Air Conditioner is a Japanese brand represented by Esquire Electronics Ltd in Bangladesh.
Manzurul Karim, general manager (marketing) of Esquire Electronics, told The Business Post, “The rise in temperature, a need for improving the quality of life and affordable prices have helped the market grow again after the pandemic shock.”
