Locker sale goes hefty

The storage locker business has gotten a big boost over the past three years while it witnessed a record sale at the start of the raging pandemic out of the security concern.

Once a token of aristocracy for the liege lords, the high-end safes are now preferred by a whole cross-section of the well-to-do and the businesses, not to mention banks and financial institutions.

Talking to a number of locker users, it was known that the sense of security drives them to buy lockers while those involved in locker business add that their sale has grown double recently.

“When it comes to storing your important documents, valuables safely, locker is second to none. It is not fashion any longer, it is a necessity,” they opined.

Against the backdrop of such a security concern, many local and foreign firms have come forward to cash in on the situation.

The sector people said locker business has been on the upswing over the last 10 years. Currently, local manufactures account for 70 per cent of the market share with uncertified lockers, but gradually importers’ contribution is rising as corporate houses are shifting to certified lockers to maintain high security.

“Imported lockers are sophisticated. They are fire resistant, invincible, send out signal once touched by an unknown and also adjustable with building wall,” they explained.

A growing concern over fire and robbery is also inspiring people to purchase lockers.

Tapan Gupta, a partner of Mohona Jewellers, described a recent robbery in Karnaphully Garden City at Kakrail in the capital.

“Due to lax security in the market robbers took away 700 bhori of gold ornaments and cash worth Tk 7.5 lakh from their two jewelry stores. We are now planning to install digital lockers to secure our wealth,” he said.

Tanti Bazar Merchants Association Joint Secretary Yousuf Sharif told The Business Post there are 3,000 jewelry stores in the market and all of them use lockers to protect their valuables.

“Gradually, we are focusing on digital lockers to heighten our security,” he said.

Locker market status

Currently, a Tk 30-crore market exists for locker business, which is gradually expanding.

Md Rafique Mehfuz, manager of Golden Trading, a dominant company in the country that supplies Indian Godrej lockers, said there are two types of lockers available in the market -- electronic locker and manual locker.

“Nearly 100 types of products are available in the market including anti-theft and mid-range fire resistant, personal locker, and institute/bank lockers. The prices range from Tk 10,000 to Tk 15,00,000,” he pointed out.

Currently, lockers are imported from India, China, Indonesia, Vietnam, Korea and Thailand. Godrej, Auro, QNN Safe, Solid, Chubbsafes, Moem are some key popular imported brands in the local market. The Golden Trade, Safe charuta, Digital Locker House are some leading locker suppliers in the country.

According to Rafique Mehfuz, the Godrej products made in India are mostly demanded in the country as they are able to provide super security tested from Australia and Germany.

“We can sell around 90 units of lockers annually in our six outlets across the country and are planning to increase our sales wings following its high demand,” Rafique noted.

Biswajit Roy, GM of Safe Charuta, maintained that they can sell 60 to 70 units of lockers per year, and they also make import.

“Around 90 per cent of banks are using uncertified lockers since there is no directive from the Bangladesh Bank in this regard. Even most jewelry businesses do the same. Foreign banks focus on certified lockers only,” according to Biswajit.

“Local products are not certified and cannot ensure that much security. That is why people go for imported products.”

Personal lockers see big sale

Currently, personal lockers are one of the best seller products in the country in line with the growing number of new millionaires.

The number of millionaires in the country with assets of more than $ 5 million has increased by 14.3 per cent on average.

The business people said bureaucrats, law enforcement officials and those living in posh areas like Gulshan, Banani, Baridhara, Uttara and Dhanmandi are prime customers of personal lockers.

Lack of trust in banks, and rising rate of robbery and theft in residential buildings are attributed to the sale bonanza of personal lockers.

Record sale at the beginning of pandemic

Like other businesses locker makers received the pandemic shock, but at the beginning of the epidemic, the demand for lockers rose significantly and consequently the business witnessed a record sale.

According to the business insiders, as banks and business centres remained closed, most corporate businesses purchased lockers to keep their valuables safe.

“We could manage to make a big sale at the start of the pandemic. Most corporate houses went for a big buy,” said Md Rofique Mehfuz.

Fazle Rabby, proprietor of Digital Locker House, posited that like other businesses they have faced challenges during the pandemic and are yet to recoup loss.

Local products dominate market

The locally made products hold 70 per cent market share due to their lower prices compared to imported ones, but gradually certified imported products are becoming the first choice of customers because of their quality and high security.

Forhad Hossain, sales manager of Jewel Metal at Bongshal, said they can sell around 40 lockers per month and their main customers are banks, jewellers and warehouses. Lockers are also going to residential buildings too.

“We are suffering due to digital lockers and rising prices of iron,” he gave vent to his frustration.

Economist Prof Abul Barkat, Department of Economics, University of Dhaka, introduced Iron Shelf Theory in 2009 in which he said shelf sale turned double in just three months over the corresponding period in the previous year.

While talking to The Business Post, he said the theory is still relevant and will always remain so, as people will earn black money and have no way to siphon it off.

The flow of black money and money laundering must be prevented strictly and wealth distributed among the poor by improving health and education, he opined.