@blue Ocean
FULL MEMBER
- Joined
- Jul 2, 2023
- Messages
- 668
- Reaction score
- 0
- Country
- Location
Locally made TVs dominate market
Locally manufactured and assembled televisions now dominate the country’s TV market, with an enormous 90 percent market share, which is a significant change from just 12 years ago, when Bangladesh was fully dependent on imports.
Locally made TVs dominate market
Photo: Prabir Das" style="box-sizing: inherit; outline: 0px;">
Photo: Prabir Das
Locally manufactured and assembled televisions now dominate the country's TV market, with an enormous 90 percent market share, which is a significant change from just 12 years ago, when Bangladesh was fully dependent on imports.
This growth is thanks to necessary policy support from the government and investments from local and multinational companies.
According to industry insiders, in FY 2010-11, the government significantly reduced import duties for electronics manufacturers and assemblers to facilitate growth and attract investment in this sector.Now, the total market is worth around Tk 4,600 crore with an average local demand of over 1 million units per year.
The market has been increasing by around 12 percent since the tax cut, thanks to the availability of electricity in both urban and rural areas as well as the increase in purchasing power of the people.
Over the last 12 years, multinational companies, namely Samsung, LG, Singer, and Sony, have also come forward to invest in Bangladesh and grab the market along with local entrepreneurs.
Mohammad Julfekur Ali, product manager at LG Electronics, said, "Companies now pay a 21 percent duty on raw materials and components imported for assembly and manufacturing."
"But, to import semi-assembled and completely built units, importers have to pay 56 percent and 96 percent duties, respectively." Ali, however, said TV sales would fall to 750,000 units this year compared to 1.1 million units last year due to inflationary pressure and an overall vulnerable economic situation in the country.
Usually, sales decline by 10 percent after every FIFA World Cup, but this year is different, and TV sales will decline by 30 percent, he added.
Saikat Azad, head of category at Transcom Digital, said almost all companies manufacture or assemble TVs in Bangladesh, as there is no way to retain a competitive edge in the market without doing so.
Transcom Digital manufactures TVs under the brand name Transtec. Bangladeshi electronics giant, Walton, is the country's top TV manufacturer, with a capacity to produce 1 million units per year.
Mostafa Nahid Hossain, chief business officer of Walton Television, said the company started manufacturing CRT TVs in 2007 and moved to manufacturing LCD TVs in 2011.
He claimed that Walton Television is the market leader with 30 percent market share in Bangladesh.
"Walton exports TVs to over 40 countries including to the USA and South Korea."
Md Manzurul Karim, senior general manager of Esquire Electronics, the sole distributor of Japanese electronics brands General and Sharp, said the company started manufacturing TVs to reduce costs -- which in turn reduced the retail price.
He added that the reduced import duties facilitated the growth of the local industry and attracted investments from local and foreign companies.
Karim also said Esquire Electronics assembled almost all Sharp TVs in Bangladesh.
Speaking to this newspaper, Md Kamrul Hasan, professor of electrical and electronic engineering at Buet, said the industry needed more fully-fledged local manufacturers like Walton.
"For a product to be considered locally made, the entire manufacturing process, from design to research and development, must be done in the country. The components can be sourced from anywhere, as is the international practice.
"However, there has been progress in recent years, and assembling of the TVs is a significant step forward in gradually moving towards fully-fledged manufacturing."
