Bhakts Going Crazy Blocking Bangladeshi Appliances: Make-in-India Not Working

[UKBengali]

Overview
Geo-strategically positioned between India and China, Bangladesh consists of the world’s 8th largest population, where consumer spending is around USD 130 billion+ growing at 6% annually. Bangladesh has been the focal point in this part of South Asia providing expansion opportunities for several sectors over the last decade. The rising Middle and Affluent Class (MAC) consumers have been playing a pivotal role in this extraordinary growth story of the consumer industry. According to a recent study by BCG (2015) (LightCastle was the local partner), the Middle and Affluent class (monthly household income of around $400 or greater, known as MAC) is expected to quadruple in size to 34 million within 2025.

Factors that are affecting consumption patterns are demographic dividend – a younger population depicts there is strong demand for goods like fast food, coffee and other beverages and consumer durable item; increasing urban population and the nuclear families – 19% of total population living in urban areas in 1990s has increased to 30%+ in 2016; Rising literacy rate, growing middle class and white collar culture, and globalization – thanks to the advent of information technology/social media. Due to growing economic prosperity across the board, MAC population residing in smaller cities increasingly have spare capital to invest in consumer durables.

This MAC population tend to have higher demand for different items including consumer durables. Urban areas have seen a rise in the number of nuclear family structure and many working couples, which has influenced demand for refrigerators and other home appliances. Alongside, growing electrification rate has spearhead demand in the rural markets. Although many local brands are entering the electronics market, majority of consumers still prefer international brands over local ones, due to perceived quality parameters. However, consumers in the low income households, in general, are more price sensitive, and are willing to purchase local brands at affordable pricing, in lieu of longer warranty period and reliable after-sales services.

With rising income, demand for consumer durables will be increasing and the current industry growth of 15% is projected to increase further. Alongside, with ease of making hire purchase and new electricity connections across the country, demand for consumer durables are expected to increase in the near future.
Market Projection
Current Categories
The market for Consumer Electronics consists of a number of segments, each of which has a significant share in the total market size. In order to get a comprehensive understanding of the market, the consumer durables market has been classified into 4 major categories.

• Television
• Refrigerators
• Air Conditioner
• Home Appliances (includes Washing Machines, Microwaves and Kitchen Appliances)

Market Size
The continually growing market is currently stands at USD 1.38 Billion as of 2017.

• Television: USD 414.22 Million
• Refrigerators: USD 549.11 Million
• Air Conditioner: USD 164.57 Million
• Home Appliances: USD 251.41 Million

Trends
Growing MAC coupled with declining cost of durables and purchase friendly terms is driving demand.

• The Rise of Nuclear Families and Working Women: Due to the increase in number of working women and nuclear families in today’s urban culture, the demand for automation in household chores has increased and as a result, there is a sharp increase in the demand for consumer electronics.
• Growing Demand in Peri Urban and Rural Markets: With the increase in household income and large scale electrification, demand for consumer electronics has increased in the peri urban and rural areas that cover 70% of the country’s households.
• Credit Facility: The consumer electronics products that were once considered as ‘high-end luxury products’ are now considered as regular household necessities. This has become possible since the companies provide the consumers with offers like EMI (Equal Monthly Installment) and banks provide credit card schemes with 0% interest loans.

Growth Forecast
All of the product categories are experiencing rapid growth and continue to exhibit greater market size in the coming years. The market standing for refrigerators and televisions look the most promising in terms of growth.

Year	TV	Refrigerator	Air Conditioner	Home Appliances
2018	414	549	165	251
2019	478	614	215	288
2020	543	680	271	328
2021	636	779	360	379
2022	699	878	392	425

Source: LCP Primary Research


Industry Drivers

• Increasing Number of Women in the Workforce: Country’s current women labor force participation is 36 percent, which is higher than the South Asian average in this regard. The increasing number of working women will give rise to demand for more products that make day-to-day lives easier.
• Competitive Market and Accessible Financing Opportunities: The competitive force of the market will lead the companies to offer different financing opportunities (e.g. EMI) to attract more consumers and the involvement of financing institutions with credit card schemes will likely to gives rise to more market demand.
• Increasing Number of Organized Retail: In order to meet the increasing demand, the number of organized retail stores throughout the country (both in urban area and its outskirts) is expected to rise. This has the possibility to generate more demand and attract new customers.
• Innovation and Greater Number of Consumption Options: Technology dispersion is usually faster in the developing countries and due to that, the market is full of new products with new features and different advantages. This ‘in-product innovation’ is coming into picture because of consumer’s necessity and has the potential to give rise to new demand as well.

Competitive Landscape
Major Brands in the Market
Consumer Electronics is a competitive market with a wide ranging products from both international and local players. Due to the brand image and credibility, the international brands have strong top of mind association. However, the local players are dominating the market in terms of sales volume, mainly due to competitive pricing.

Product Category	Local Brand	International Brand
Television	Rangs, Walton, Vision, Singer, MyOne.	Sony, Samsung, Panasonic, Toshiba, Phillips, LG, Sanyo.
Refrigerator	Walton, MyOne, Minister.	Samsung, Whirlpool, Kelvinator, LG, Hitachi, Hier.
Air Conditioner	Butterfly, Walton,	General, LG, Daikin, Gree, Carrier, Whirlpool.
Home Appliances	Walton, Electra, Singer, Eco+.	Miyako, Sebec, Panasonic, Sharp, Steamfast.

Market Share Intra Category (Television)
Walton, the local brand is in the leading position in the Television market with a market share of 27 percent. However, most of the market share is covered by different local, international and Chinese brands which makes the television market somewhat saturated.

Company	Share
Walton	27
Singer	7
Minister	4
LG	3
Sony Rangs	3
Vision	2
Nova	2
Transcom	2
Others	50

Source: LightCastle Primary Research


Market Share Intra Category (Refrigerator)
In the market for Refrigerators, famous local brand Walton is in the leading position with 54% market sharing, taking over more than half of the market share. The second position is also held by a local brand, Singer.

Company	Share
Walton	54
Singer	14
LG	4
Jamuna	4
Minister/MyOne	4
Others	20

Source: LightCastle Primary Research


Market Share Intra Category (Air Conditioner)
The Air Conditioner market used to be dominated by foreign brands like LG, General and Gree. In recent years, local brands like Walton have started manufacturing/assembling air conditioners at affordable pricing, with majority of price sensitive customers choosing inexpensive ACs Walton even has launched an Air Condition model with Ionizer technology in the local market back in last July (2017). A device named ionizer attached to an air conditioner filters dusts, smoke, bacteria and odor from room air making it pure and healthy.

Company	Share
General	35
Gree	20
Singer	14
Others	31

Source: LightCastle Primary Research


Summing Up and Future Opportunities
Due to rising labor costs in China, more and more production is being outsourced to cheaper destinations. Bangladesh with its affordable wage structure of workers, growing expertise in the IT sector and light engineering, can be a future hotspot for manufacturing of consumer electronics.

Consumer electronics industry shows a brighter picture of the future. With number of nuclear families on the rise, and other macro and micro economic factors changing for the better, it is a safe bet to say the industry will boom. While the local companies have yet to catch up with the international big players, the day is not far when the locals will compete in the same demographic consumer market as the international players.

Wow the BD internal electronics market could double in 5 years and so by 2030 it could be around 4 times as large as now, turning Walton into a multi-billion US dollar revenue company just on domestic sales.

As we have stated many times, companies like Walton have the advantage of the much larger home market than say the Korean ones like Samsung and LG.

Nothing is of course guaranteed but the future looks promising for companies like Walton, both at home and abroad.

 

[SpaceMan18]

Who let these Pajeets in this thread , you know they're just gonna get salty despite their own people making even more absurd claims like they're the superpower.

Buddy no one is acting like BD is a superpower , only Indians are and their delusional brains

India Market Info

• The Indian consumer electronics and domestic home appliances market is expected to grow from $31.4 bn in 2017 to $48.3 bn by 2022 at 9% CAGR
• Demand is expected to grow at 41% CAGR (2017-20) to reach $400 bn by 2024. With domestic production touching $60 bn in 2018-19, there is an import shortfall of $340 bn
• India is the world’s second largest mobile phone market and boasts 7.6% of the global smartphone market
• The 2019 appliance & consumer durable market was $10.7 billion.
• Domestic electronics production is growing at a CAGR of 27% and may touch $104 billion leaving an import shortfall of around $300 billion
• India’s imports of electronic goods grew 31% between April and October 2017 to $29.8 billion.
• The overall Indian electronics market grew by 8.6% YoY to reach $75 billion in 2015, driven by rising local demand
• India is also counted amongst the largest fast-moving consumer goods (FMCG) and durable markets in the world, worth US$ 38 billion and US$ 10.7 billion, respectively.
• The size of home appliances and consumer durables market was US$ 15.5 billion in 2017
• The consumer durables market in India is expected to reach US$ 20.6 billion by 2020 with India becoming the fifth largest consumer durables market in the world by 2025.
• India has a huge untapped home appliances market; currently only 29% houses own a refrigerator, 11% own a washing machine and 6% own a computer or a laptop.
• Kitchen Appliances recorded growth of over 13% CAGR from 2011-16 and projected to reach over US$ 7 bn by 2022 with categories like Hobs, Blenders, Microwaves, Chimneys, Electric Kettles, Cookers, etc., recording double digit value growth.
• India has the world’s 3rd largest television industry, which is expected to grow by 12.97% to US$ 11.78 billion in 2018 from US$ 9.23 billion in 2016
• The market size for refrigerators was around US$ 3.02 billion in 2017 and is expected to reach US$ 5.34 billion by 2022 while the market size for air conditioning was around US$ 2.76 billion in 2017
• India’s robust economic growth and rising household incomes are expected to increase consumer spending to US$ 4 trillion by 2025

How did superpower India lose to China then ? These numbers are no match for China and yet you guys wanna compete with them.

At least BD isn't claiming to be a superpower while trying to go against China

 

[siegecrossbow]

Who let these Pajeets in this thread , you know they're just gonna get salty despite their own people making even more absurd claims like they're the superpower.

Buddy no one is acting like BD is a superpower , only Indians are and their delusional brains


How did superpower India lose to China then ? These numbers are no match for China and yet you guys wanna compete with them.

At least BD isn't claiming to be a superpower while trying to go against China

Like I said before, they used to focus their salt exclusively on China back in the early 2010s when it looked like that they could still catch up. The fact that they graduated to Bangladesh is actually a testament to your country's development.

 

[UKBengali]

Like I said before, they used to focus their salt exclusively on China back in the early 2010s when it looked like that they could still catch up. The fact that they graduated to Bangladesh is actually a testament to your country's development.

Modi is begging for open border with BD but BD government is cold on this proposal.

 

[SpaceMan18]

Like I said before, they used to focus their salt exclusively on China back in the early 2010s when it looked like that they could still catch up. The fact that they graduated to Bangladesh is actually a testament to your country's development.

They believe in karma , they keep on making fun of us but when we actually pass them by some miracle in the future we will be the ones to laugh at them.

 

[Saiful Islam]

No is saying BD is Sweden or Abu Dhabi, but it's embarrassing that Indians here are comparing the likes of their country to BD.

 

[UKBengali]

No is saying BD is Sweden or Abu Dhabi, but it's embarrassing that Indians here are comparing the likes of their country to BD.

Yep we are such losers we need to chest-thump how much larger our companies are compared to a country that is 8 times less in population.

 

[Bilal Khan (Quwa)]

Nope it only offers it’s own lcd panels for 4K and I think all other TVs as well. The 2 Chinese 4K panel TVs have now been discontinued.

You need to get with the times and @Bilal9 has posted Walton manufacturing it’s own panels on many videos before.

Sorry if this burns many people but facts are facts.

Yes the export volume is tiny now but the most important thing is BD quality is good enough for the West and Walton has a plan by 2030 to be one of the top 10 electronics brands in the world. It will take time to get export volumes high but Walton is on the right track.

As for Vietnam I think it is just foreign company assembled products but @Viet can maybe help?

I think the guy was referring to the lack of semiconductor manufacturing in Bangladesh. Even though Walton manufacture their own panels, the critical inputs still likely come from overseas. The next step for Walton (or the BD economy as a whole) is to invest in critical inputs so that you can source displays domestically, and in turn, get the max value out of your exports (without diverting a cut to your overseas suppliers).

Basically, to break into the South Korea or Japan league, you need to invest in indigenous critical inputs. You won't break out if you're relying on outside inputs (as there'll always be another Bangladesh who'll try to beat you on cost). This is where you need to mobilize your human development, STEM investment, etc.

 

[UKBengali]

I think the guy was referring to the lack of semiconductor manufacturing in Bangladesh. Even though Walton manufacture their own panels, the critical inputs still likely come from overseas. The next step for Walton (or the BD economy as a whole) is to invest in critical inputs so that you can source displays domestically, and in turn, get the max value out of your exports (without diverting a cut to your overseas suppliers).

Basically, to break into the South Korea or Japan league, you need to invest in indigenous critical inputs. You won't break out if you're relying on outside inputs (as there'll always be another Bangladesh who'll try to beat you on cost). This is where you need to mobilize your human development, STEM investment, etc.

Yes but Walton needs to get a lot larger both from the domestic market and overseas sales before it has the money to start investing in these areas. They probably already have detailed plans for this but need to wait till the time is right.


As for "another Bangladesh" in electronics like TVs and smartphones, it is not that easy as Walton took decades of growth and investments to get to where it is today. Even much larger India is nowhere at BD's level in this area.

Since BD is able to hold it's market share in the much less hi-tech garments industry then there is less of a chance of someone else replacing BD in the low-cost mid-sector electronics market.

 

[SpaceMan18]

Arey, Billi started the comparison. I didn't start a thread to compare India to China. We are not dumb idiots like Lungis. I mean who would open a thread with $12 million in exports and brag about it. That baffoonery is reserved for lungis. Also look up headline before you comment for context.

Lol. Testament to what exactly? Fakery?

Lmao are you retarded ? WHO TF IS HERE BRAGGING ABOUT 12 MILLION DOLLARS ? I like how you say Lungis yet your kind is known for scamming westerners and constantly going online screaming at foreigners about how much of a superpower India is . And then crying like a little bitch when a westerner criticizes India's shitty military equipment and engineering.

An Indian talking smack about Bangladeshis is extremely ironic , first try to keep you people not dying from Covid and try to get your economy up to China's level before even thinking of going against China.

Couldn't go against China and now shitting on Bangladesh , keep doing that cause that's just going to lead you to a ditch

No is saying BD is Sweden or Abu Dhabi, but it's embarrassing that Indians here are comparing the likes of their country to BD.

Indians lost their will against China and now are trying to pick a fight with Bangladeshis LMAO , it's almost like cow urine doesn't help with low IQ

 

[Bilal9]

I think the guy was referring to the lack of semiconductor manufacturing in Bangladesh. Even though Walton manufacture their own panels, the critical inputs still likely come from overseas. The next step for Walton (or the BD economy as a whole) is to invest in critical inputs so that you can source displays domestically, and in turn, get the max value out of your exports (without diverting a cut to your overseas suppliers).

Basically, to break into the South Korea or Japan league, you need to invest in indigenous critical inputs. You won't break out if you're relying on outside inputs (as there'll always be another Bangladesh who'll try to beat you on cost). This is where you need to mobilize your human development, STEM investment, etc.

Bhai it will take time to break into the South Korea or Japan league in any case, the growth will be organic.

I was in Korea and Taiwan in my early adult years and the path they took two decades ago is what is happening in Bangladesh right now.

Bold companies in Bangladesh with the technical and financial chops (like Walton and RFL) will invest in automated robotic pick/place SMD chips assembly machines (several crore each), massive flow soldering lines, to manufacture circuit boards. However the SMD/SMT components that go into those boards (that come installed in chips tapes which feed into the robotic pick/place machines) need a certain volume of use (the power processor IC's and system processor IC's more so) before the companies can invest in local manufacture of those components which is economically viable enough. Few of the countries in the subcontinent have robotic pick/place machines to manufacture cellphone or laptop circuit-boards inhouse, there are a couple of companies in Bangladesh that have it (including Walton which has a dozen such machines) and it is a rarity in India too. In fact foreign brands like Vivo, Redmi and Oppo in India use imported circuit-boards to assemble their local India-market cellphones. I think only DIXON and a few other companies in India have invested in a few cases with these pick/place machines given how expensive they are.

Twenty years ago, Korea and Taiwan (same with China ten years ago in most cases) used imported subassemblies (local IC Chips in Very rare cases), which rapidly gave way to local backward integration such as local SMD and electronics components (including simpler IC Chips) manufacture.

FABs for microprocessors (advanced factories) are a $15-20 Billion investment, and that investment becomes rapidly obsolete in less than five years. Only Korea and Taiwan are in this business now (TSMC, SAmsung), China is trying to catch up with newer FABs but finding it tough and slow because of US embargo.

Bangladesh and India will not get there in less than a decade.

 

[DESERT FIGHTER]

i seen i think it was called dawlance but i thought it was joint venture with turkey it was good fridge in aunts pak house.

Dawlance was a Pak company... they sold to Turkey.

 

[mmr]

This is the problem with bhakts.

They start comparing low class Hajmola and Paan Ghutka (snacks and condiments) making companies with consumer appliance companies.

No wonder - because bhakts are mostly uneducated Darwan/Chowkider types. How'd they know the difference?

So let's take Godrej Home appliances in India

Lmao are you retarded ? WHO TF IS HERE BRAGGING ABOUT 12 MILLION DOLLARS ? I like how you say Lungis yet your kind is known for scamming westerners and constantly going online screaming at foreigners about how much of a superpower India is . And then crying like a little bitch when a westerner criticizes India's shitty military equipment and engineering.

An Indian talking smack about Bangladeshis is extremely ironic , first try to keep you people not dying from Covid and try to get your economy up to China's level before even thinking of going against China.

Couldn't go against China and now shitting on Bangladesh , keep doing that cause that's just going to lead you to a ditch


Indians lost their will against China and now are trying to pick a fight with Bangladeshis LMAO , it's almost like cow urine doesn't help with low IQ

Forget about china. Indian export is less then that of tiny Vietnam. Indian export 2010 was around 300 billion (exclude service) its still around same figure. This moron protest what ever keep whining about 30 billion/month export lol comes to same around 300 to 350 billion export India did even decade go...so zero growth... below is a good read....despite whining about china day and night...over jealous endians cant get enough of China.

As trade with China grows despite tensions, ‘self-reliant India’ dream fades

Despite military tensions, a pandemic and calls for a boycott of Chinese goods, two-way trade has grown by over five per cent, with China leapfrogging the US as India’s largest trade partner.

www.scmp.com

Look at the 2012 number and 2019 same...around 300 Billion. But ya let the toilet less endians keep whining being super power lol

 

[letsrock]

Arey, Billi started the comparison. I didn't start a thread to compare India to China. We are not dumb idiots like Lungis. I mean who would open a thread with $12 million in exports and brag about it. That baffoonery is reserved for lungis. Also look up headline before you comment for context.

Are you not a south indian yourself? and dont you guys wear lungis everywhere? even north indians wear them,
Self hatred is the first criteria to be an indian nationalist i suppose. No wonder how cocky you act you remain the worlds biggest buffoons.

 

[Species]

Electronics exports from India can potentially rise from $11.28 billion in 2019-20 to $180 billion in 2025.

Lol, whatever industry you dhotis have is only because of foreign investments from international brands and supply of Chinese components.

The main gist of the OP is dhoti brands cannot sustain when there is competition and that's the reason why most Indian electronics companies like Videocon, BPL got busted when foreign brands were allowed to enter the Indian market after the end of license raj.

Walton, on the other hand, has been dominating the market despite the presence of international brands and now heading towards export.