Written by Akhlaqur Rahman Sachee and Raiyan Rabbani

Nowadays, it is difficult to imagine an office, home, or any other residential or commercial premises without air conditioners, refrigerators, televisions, etc. Even though they were considered luxury products a few years back, they have become necessities these days. The consumer durables market consists of goods like electronics and home appliances that provide products that most people consider essential to maintaining a certain standard of living in order to make life more convenient by saving time, money, and effort. The growing consumer confidence in Bangladesh, along with improved economic conditions, means demand
for these types of products is ever increasing. Revenues in the consumer electronics market amount to USD 9,843 million in 2022. The expected annual growth of the market is 7.94%. Televisions and refrigerators have a larger market share in the consumer electronics market in Bangladesh, as they are considered essential household products. There is also a change in consumers’ perception, who now demand a more customised and seamless experience through these products. Thus, it is up to the industry players to ensure they can cater to these changing demands while ensuring the availability of these products through all channels.

Global Market Scenario
An increase in the variety of consumer electronics in the global markets has significantly boosted the growth of the worldwide consumer electronics market. Manufacturers are heavily investing in integrating various digital technologies in consumer electronics products to provide a high-quality experience through customisation. More advanced features and integrated technologies are leading to better-personalised experiences. Portable and lightweight electronics are gaining popularity among consumers. Manufacturers’ response to the development of easy-to-use and convenient products is expected to drive the sales of consumer electronics across the globe. Manufacturers are also focusing on innovation to continuously bring new products to the market so that the lifecycles of the existing goods are less than a year or so. Thus, innovation has become a critical success factor for the survival of these companies.

for these types of products is ever increasing. Revenues in the consumer electronics market amount to USD 9,843 million in 2022. The expected annual growth of the market is 7.94%. Televisions and refrigerators have a larger market share in the consumer electronics market in Bangladesh, as they are considered essential household products. There is also a change in consumers’ perception, who now demand a more customised and seamless experience through these products. Thus, it is up to the industry players to ensure they can cater to these changing demands while ensuring the availability of these products through all channels.
Consumer electronics are one of the most widely used goods worldwide. Electronics for non-commercial use are referred to as “consumer electronics.” The worldwide consumer electronics market has grown tremendously due to households’ increasing adoption of a broader range of consumer electronics. The integration of various digital technologies into consumer electronics appliances is receiving significant attention from manufacturers, who are also placing more and more emphasis on providing consumers with high-quality personalised experiences. Globally, the downsizing of electronic products is gaining ground quickly. Consumer electronic products that are portable and lightweight are becoming more and more popular among consumers. The worldwide consumer electronics market is expanding with the adoption of small electronic components. Manufacturers are shifting their attention to integrating various technologies in consumer electronics products and are increasing their focus on providing a customised experience. Mobile phones, laptops, computers, TVs, refrigerators, and wearable tech are some of the most popular consumer electronics around the world.
New products with cutting-edge features are being introduced as a result of the leading manufacturers’ increasing investments in R&D and innovation. For instance, Philips allocated more than USD 500 million to research and development in the first quarter of 2021. Additionally, due to rising consumer awareness regarding power usage and its negative impacts on the environment, energy-efficient electronics products have seen tremendous growth in terms of popularity. Additionally, the consumer electronics business is expanding due to escalating investments in creating distribution networks and global expansion.
The outbreak of the COVID-19 pandemic in 2020 had a detrimental effect on the consumer electronics industry. The global travel bans and lockdown measures disrupted the supply chain and manpower shortages, resulting
in production facilities shutting down. However, due to rising spending on lifestyle improvement items and the growing trend of working from home, several segments, which include dishwashers, laptops, etc., experienced positive growth. Additionally, during the global pandemic, the sales of consumer gadgets were significantly boosted by e-commerce platforms. The growing use of digital and electronic items for both personal and business purposes had a big effect on the growth of the market.

Consumer Electronics Industry of Bangladesh

According to the Global Data Lab, in Bangladesh, having a population of more than 160 million, only 41.30% of the households have refrigerators, and 57.40% have televisions. So, it is comparatively a small market in terms of global standards. Moreover, the useful life of these goods usually tends to last for a longer time than the global benchmark. However, the lion’s share of this market has already been served by local manufacturers like Walton, dominating the market with a 26% market share as of last year. As per the recently published news in a national daily, Mr Anisur Rahman Mallick, Chief Business Officer of Walton’s refrigerator wing, said the company’s market position remained virtually unaltered in 2019 and 2020. However, their refrigerator sales dropped in 2020 as a result of the COVID-19 pandemic. In 2021, the volume of sales climbed again. Their market share was 84.50% at the time. Bangladeshi consumers mainly rely on international brands when it comes to consumer electronics over local brands. LG’s television sales jumped by 10%. On the other hand, Singer Bangladesh announced a 64% drop in television output in 2020. In the domestic market, Rangs, MyOne, and foreign brands such as Sony, Samsung, Panasonic, Toshiba, and Philips sell televisions. Butterfly, LG’s local business partner in Bangladesh, has set up a factory to make smart TVs in the country.

Bangladesh was once heavily dependent on imports of electronic products but is now an exporter of consumer electronic goods such as televisions, refrigerators, washing machines, etc., to the global markets, earning USD 22 million in foreign currency during FY2020–21. Data from the Export Promotion Bureau (EPB) shows that earnings from electronics product exports rose by 1.28% in FY2020–21 in comparison to FY2019–20.
From the total export earnings in FY21, the highest USD 10.63 million came from refrigerators, USD 6.42 million from televisions, and USD 2.27 million from air conditioners. According to the Export Promotion Bureau, Bangladesh exported freezers worth USD 1.10 million during that time period, followed by washing machines worth USD 279,657, blenders worth USD 134,132, gas stoves worth USD 150,895, rice cookers worth USD 317,673, electric fans worth USD 424,790, laptops worth USD 13,603, compressors worth USD
900,830, and mobile phones worth USD 250,828. Walton was the largest exporter of such electronic goods.

Prospects of the Industry

In a recently published news report in New Age, the president of the Federation of Bangladesh Chambers of Commerce & Industries (FBCCI), Mr Md. Jashim Uddin said the electronics and electrical industries might play an important role in diversifying the home export basket provided the government assures policy support for the sector. Hire purchases, and new power connections across the nation will be the two primary growth drivers of the consumer electronics sector. Consumer electronics were once thought of as “high-end luxury products”. But, with Bangladesh’s urbanisation and the growth of the “middle and affluent consumers” (MAC), they are now seen as common household requirements. Consumer electronics businesses have begun to offer variousEqual Monthly Installment (EMI) offerings as a result of this possibility, and banks have also joined in with a range of credit card offers. Bangladesh has the capacity to develop as a centre for the production of consumer electronics because it has low labour costs, knowledge and skills in the IT industry and light engineering, and government incentives to welcome FDI.
In the same report published in New Age, Mr Mostofa Azad Chowdhury Babu, Senior Vice-President of the FBCCI, emphasised that the government should offer support to all the industries that have the potential to increase government revenues through exporting goods. Also, Mr Md. Sohel Khan, President and CoChairman of the standing committee of the Bangladesh Television Manufacturer Association, requested the
government to guarantee support for all sectors of the economy that have the potential to increase tax revenues for the government by exporting their goods. He requested the government to recognise the industry as a backwards-linkage industry and to provide it with a specific industrial zone. Also, the government has been asked to support the industry that manufactures electronic goods by giving a 15% financial incentive.

Potential Data-Driven Changes in the Industry

Changes in consumer expectations from the industry have been observed. Also, significant changes have been observed in purchasing behaviour. These changes primarily stem from the integration of technology. As technology blends in, the changes evident have been explained below.

Significant policy changes are occurring in Bangladesh, particularly with regard to the regulatory and corporate environments. As per the existing policies, businesses would find it much simpler to establish local assembly plants. Recently, the government recommended some considerable policy support for the consumer durables industries in order to help them meet the growing demand for their products while maintaining a good profit margin. It will be interesting to see how well local businesses adapt to changing customer needs through customisation and how well they embrace innovation to create new business models that serve customers better than their foreign competitors.