A recent nationwide research conducted by Marketing Watch Bangladesh on the electrical accessories and lighting products has revealed that local companies are currently holding a strong dominance in the market.
The findings of the study were presented at a press conference held on Saturday at the Department of Marketing, University of Dhaka.
The findings and recommendations of the study were presented by Md Mizanur Rahman, former chairman of the Department of Marketing and co-founder of MWBD, and Md Nazmul Hossain, professor of marketing at the University of Dhaka.
As per the study, the products covered by the study included switches, sockets, holders, multi-plugs, circuit breakers, meters, and a variety of lighting products such as LED bulbs, LED tubes, LED panels, bracket LEDs, GLS bulbs, energy-efficient bulbs, and emergency lighting options.
Calling the industry highly promising, the study says ‘Currently, there are more than 5 lakh people directly or indirectly involved in this industry, including about 1.5 lakh retailers and 2500 entrepreneurs across the country’.
The combined market size of the two categories of products is worth Tk 6,500 crore. Of which, the market for electrical accessories products is to the tune of Tk 3,575 crore and the market for lighting products is of Tk 2,925 crore. Both products have been growing steadily for the past two decades, it says.
The average growth rates of electrical accessories and lighting products are 10 per cent and 13 per cent respectively. If these growth rates continue in the coming days, this sector will emerge as one of the largest sector in the Bangladeshi economy.
Research shows that among domestic companies, the Superstar Group holds the top position in the market for both types of products.
According to the research, Super Star has 29 per cent market share in the branded electrical accessories segment, Walton has 17 per cent, Click has 17 per cent, Energy Pack has 9 per cent, Osaka has 5 per cent, and Blink, MEP, and Luxar have 3 per cent each.
On the other hand, in the branded lighting products segment, Super Star has a 25.59 per cent market share, Click has 13 per cent, Walton has 12 per cent, Transtec has 10 per cent, Energy Pack has 8 per cent, and Philips has 7 per cent.
Researchers suggest that, to promote the growth of this highly promising industry, the government needs to strengthen its surveillance system to reduce gray market activities.
At the same time, the government needs to make radical changes to the existing tax system to encourage domestic companies so that they can import raw materials for products at a lower cost.
