A fridge is no longer a luxury – it is a necessity in every household, says KMG Kibria, head of brand, marketing and communication at Minister - MyOne Group. In a recent interview with the Daily Sun, Kibria sheds light on how local brands have revolutionised the refrigerator market in Bangladesh –making quality cooling solutions accessible from cities to the most remote villages. He discusses the shift from import dependence to domestic innovation, Minister’s popular Eid-ul-Azha offers, and how the company is navigating inflation while keeping fridges within everyone’s reach.

Daily Sun: The demand for refrigerators in Bangladesh is now almost entirely being met by local production. The market is expanding. Are low-income people now able to buy locally manufactured refrigerators?

KMG Kibria: The refrigerator market in Bangladesh is currently in a strong position. Domestic brands have made significant progress. There was a time when the market was entirely dependent on imports. Through innovation, quality manufacturing, and affordable pricing, local companies have taken control of the market. From urban areas to rural regions, refrigerators have become an essential household item across all income groups. With the transformation of the rural economy in Bangladesh, refrigerator usage has also increased. The growing stability in electricity supply and improvements in living standards have driven up demand in rural areas as well. This demonstrates that the refrigerator market in Bangladesh is rapidly expanding, and local companies are playing a crucial role in this growth. Refrigerators are no longer a luxury item for the affluent – they have now reached the homes of low- and lower-middle-income families. Due to affordable pricing and convenient instalment facilities, refrigerators are now within everyone's reach.

Daily Sun: What factors have contributed to the success of local companies in refrigerator production, overcoming the previous reliance on imports?

KMG Kibria: Several key factors have contributed to the remarkable success of domestic companies in refrigerator manufacturing in Bangladesh. Moving away from import dependency, local firms have established their own production, research, and technology facilities. As a result, they now not only dominate the domestic market but have also begun exporting internationally. There are some tax benefits for local manufacturing, whereas imported foreign-brand refrigerators incur higher duties, which has given domestic companies a competitive edge. Bangladeshi companies have established in-house research and development units and are producing key refrigerator components themselves. With a skilled local workforce and comparatively lower labour costs, production expenses have been kept under control.

The rapidly growing middle class in Bangladesh and the widespread access to electricity have increased demand for refrigerators in rural areas. This expanding market has made investments by local companies both safe and profitable. Understanding consumer tastes and budgets, local brands have introduced refrigerators in a variety of designs, sizes, and colours. These products include energy-efficient models and smart technologies of international standard. By maintaining global quality standards, Bangladeshi companies are now exporting to Europe, Africa, the Middle East, and more. Due to the foresight of local entrepreneurs, companies have successfully overcome import dependency and are now capable of competing on an international scale.

Daily Sun: What is the demand like for refrigerators in remote rural areas?

KMG Kibria: There used to be a perception that the major market for electronics, including refrigerators, was limited to Dhaka and other urban centres. However, the situation has changed significantly. Various types of household electronics, including refrigerators, are now seeing remarkable sales growth in remote rural areas. Rural and semi-urban buyers are looking for durable, energy-efficient refrigerators that also perform well during power outages. Currently, about 55%-60% of our total sales come from rural areas outside Dhaka. In particular, sales at the upazila (sub-district) and village levels are growing rapidly.

Daily Sun: Eid-ul-Azha is approaching, and this is typically a peak season for refrigerator purchases. Are you offering any special benefits to customers for the occasion?

KMG Kibria: There is year-round demand for refrigerators in our country, but this demand increases significantly around Eid-ul-Azha. In particular, there is a surge in demand for deep freezers to store meat. During this time, many families decide to purchase new refrigerators or deep freezers, which boosts our sales multiple times. For our valued customers, Minister has launched the “Buy a Fridge, Win a Cow” offer – Season 2 – for the holy occasion of Eid-ul-Azha. Last year, this campaign received an overwhelming response, and due to popular demand, we have brought it back this year.

With this offer, customers who buy a fridge will receive a scratch card and can win prizes such as a cow, a free fridge, guaranteed big discounts, and attractive gifts. We also offer easy instalment facilities and EMI (Equated Monthly Instalment) options through various banks’ credit cards for the convenience of our customers.

Daily Sun: Tell us about your after-sales service.

KMG Kibria: Customer satisfaction is our greatest achievement. That’s why Minister gives top priority not only to product quality but also to ensuring excellent after-sales service. We have over 300 service points across the country and a dedicated call centre that provides 24/7 customer support, including warranty coverage. We have several skilled service teams working round-the-clock across the country to promptly address any mechanical issues faced by our customers.

Daily Sun: With rising inflation, how are you keeping refrigerator prices within the reach of customers?

KMG Kibria: Most manufacturing plants are dependent on electricity and gas. Due to inflation, rising utility costs, and the increasing dollar exchange rate, production costs have gone up, which in turn has raised product prices. Office and showroom operational costs have also increased. To tackle this challenging situation, we have adopted several strategies to help control business expenses to some extent. We are increasing automation in the production process to reduce costs. Efforts are being made to boost the efficiency of our manufacturing units to ensure higher production at lower costs. Plans are in place to use solar panels to reduce dependence on electricity. Instead of high-interest bank loans, we are exploring funding options from investors. We are also cutting unnecessary corporate expenses and streamlining financial operations. Every area of expenditure is being closely monitored to reduce waste and maintain profitability. At the same time, we are offering easy instalment plans and discount offers to help maintain affordability for our customers.

Daily Sun: Are there any obstacles hindering the growth of the refrigerator sector?

KMG Kibria: Due to various global and domestic economic challenges, the market has become somewhat unstable. The continuous rise in inflation and foreign exchange rates are major contributing factors. The increasing value of the dollar has significantly raised import costs, which has directly affected not just the refrigerator industry, but many other industrial sectors as well. A number of essential raw materials and components required for manufacturing refrigerators need to be imported, and the high cost of the dollar has made these materials much more expensive than before.