Local, foreign brands in a race to grab electrical switch, socket market

Local and foreign brands are running neck and neck to capture the electrical switch and socket market across the country.

Though foreign brands still occupy more than 50 per cent market share of the electrical equipment, local brands are trying to edge out their foreign peers.

The industry insiders say electrical switches and sockets are particularly used in modern buildings, corporate houses, and the like across the country.

There are two categories of electric switch – Piano series and Gang series.

Around 80 per cent of the Piano series is manufactured by local brand and non-brand enterprises dominating the market, while in the case of Gang series, home and foreign brands each occupy 50 per cent market share.

Sources said electrical switches of Piano series are mostly used in rural areas and Gang series in urban establishments.

Bangladesh Electrical Merchandise and Manufacturers Association president Md Mosharraf Hossan Bhuiyan told The Business Post despite China’s dominance over the switch and socket market, domestic manufacturers are gaining ground.

“At present, locally produced cable and fan are able to meet the country’s demand. Within a few years, it will be possible to meet the demand of electrical switches and sockets,” he added.

The household names such as Walton, RFL, Energypac, Mohammadi Electric, and Super Star have been manufacturing electrical products.

Due to customer interest in shiny products, about 60 per cent of Gang switches and 20 per cent of Piano switches are in occupation of foreign brands, especially China.

The association vice-president Md Kamal Hussain Mridul said the Chinese products look good from outside, but they do not last long. In this case, both importers and sellers benefit as the sale of those items keeps up.

“We are selling electrical sockets, switches worth Tk 14 crore to Tk 15 crore per month. Last year our growth was nearly 50 per cent,” viewed Md Shole Rana, chief business officer of the country’s tech giant Walton.

“In the country’s branded switch and socket market, we have about 15 per cent market share, and have targeted more than Tk 200 crore sale this year.”

Traders said they sell a variety of products of local manufacturers such as Sunplus, Winer Deluxe, Superstore, Osaka, Tisha, Sunlight, Hosaf, Toshiba, Paradise, BBS, Sohana, City, Falcon, Transtec, PHB, Smart, Padma, MK, Grameen, Anik, and RK apart from branded ones.

Pran-RFL Group Director (Marketing) Kamruzzman Kamal argued that the upper- and middle-class segments of population turn to foreign brands despite quality products offered by home brands.

Due to rapid urbanisation and cent per cent electrification already underway, the countries electrical product market is very likely to experience higher growth, with currently making up 20-30 per cent annually.

The branded companies are making around Tk 12,00 crore annually while there are many non-brands in the race.

“We sold products worth over Tk 50 crore last year with an annual growth of 10-15 per cent,” said the Pran-RFL Group official.  

Branded companies now meet 50 per cent of local demand while non-brand products – both local and imported – cater to the rest, he pointed out.

Super Star Group – leading manufacturer of electrical products – made a sale of over five crore unit products worth Tk 260 crore, of which switch and socket sale earned over Tk 185 crore.

In the country’s domestic switch and socket market, Super Star has more than 30 per cent share among the branded companies. 

Md Rony Mollah, senior brand executive (Marketing and Business Development) of Super Star Group, told this correspondent imported switches and sockets are always in demand among consumers.

A customer Md Hassain was spotted to buy electrical item. Asked about his preference, he said he bought Chinese Gang switch, but similarly purchased non-brand cable and switch either.

Of the local branded companies, switches and sockets made by Super Star sell big, according to MD Muhin Sheikh of Bikrampur Electric and Electronics at Sundarban Square Super Market in the capital.

“A majority of customers prefer smooth and shiny items. In Bangladesh, two-three companies produce Gang switch, and compete with the Chinese products,” he added.