In the past four to six years the number of cafés sprouting in the country, especially in the capital Dhaka, have increased significantly. The two hands holding a cup of tea and a newspaper are slowly being replaced with a smartphone and a cup of coffee. The definition of ‘a time spent well’ is also shifting from lazy evenings in the backyard to cozy get- togethers in cafés. The growing café culture is popular among people of all ages, more so among the millennials.
Coffee shops across the capital are frequented by customers during the mornings and evenings. On-the-go coffee has quite a demand during the first hours as customers are trying to get a quick sip on their way to work or classes. The evening visitors are more relaxed and arrive with the purpose of enjoying a conversation and the surroundings.
MARKETING TRENDS FOR COFFEE SHOPS
The coffee houses around the city scale up their marketing endeavors and give out special offers during holidays and events. Exposure during local entertainment, readings, or book clubs events bodes well for these businesses and using technology increases visibility among target customers. They often develop fun and interesting customer loyalty programs. But at the core of it all is probably the branding, building a theme around the offerings with which customers can easily relate to.
Sales of coffee are dominated by hot beverages. People have listed North End Coffee Roasters, Crimson Cup, Gloria Jean’s Coffees and Columbus Coffee Shop as some of their favorites. Cappuccino and mocha latte or café latte are the most frequent purchases. Coffee prices in the capital average around BDT 145. Complementary treats and desserts often accompany a cup of coffee. Pop-up coffee carts on roadsides are also popular as they sell hot and cold beverages at a cut-price.
EXPERIENCE VALUED MORE THAN EXPENSE
Consumers do not just love the coffee but also value the experience that comes with it. Premium coffee comes with premium price and coffee lovers are willing to pay for a good experience. People have listed the taste and the quality as top factors for buying coffee from a certain shop. The price, surprisingly was one of the lesser indicators for making purchase decision while amicable environment, service and also the quality and differentiating fragrance of coffee carried significant weight.
The Central Bank announced the Monetary Policy Statement for the second half of FY 2017-18 on January 29, 2018 in the wake of the banking sector’s acute inquisitiveness regarding new directives for lending. As the industry experts and economists labeled the MPS aptly as “Cautionary”, it sets a lukewarm tone for private sector lending. The private sector credit growth target set for H2, FY 18 is 16.8% which is modestly higher than that of last half (16.2%) and considerably lesser than the growth achieved in December’17 (18.13%). In another bid to tighten credit supply and enable banks to continue lending appropriate sectors, the Central Bank curtailed the Advance-Deposit Ratio (ADR) of conventional banks to 83.5% from 85% (89% IDR for Shariah based Islamic banks from 90%), in a separate circular. The new directive asserts that banks must show steady growth in deposit mobilization alongside lending, unlike the scenario till date. On another note, the effort of the Central Bank to curb excessive lending may have a bright impact on the mounting NPL trend. It is the time to discern how the banks maneuver the perfect deposit-lending portfolio mix aligning with the directions by Central Bank and still maintain the thriving growth of their profitability.Download View