Thursday, 2 December, 2021

Local brands dominate TV market

A study report reveals that Bangladesh TV market share is now dominated by local manufacturers

  • DU Correspondent
  • 25 November, 2021 12:00 AM
  • Print news
Local brands dominate TV market

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A recent study finds that domestic television manufacturers are now dominating Bangladesh’s television market.

According to the study, the domestic brand Walton is the “market leader” in the country's television industry with 25 percent market share.

Other top four brands include Samsung with 11 percent, Singer 9 percent, Sony 5 percent and LG 4 percent shares.

Among the domestic brands, Minister, Vision and Jamuna have a market share of 3, 2.5 and 1.5 percent respectively,finds the study.

The study was conducted by Marketing Watch Bangladesh (MWB), a non-profit organisation, which deals with real time data and market scenario.

The findings of the study were released at a press conference at the Department of Marketing conference room at the University of Dhaka on Wednesday.

Dr Nazmul Hossain, co-founder of MWB, unveiled the findings while Prof Dr Mizanur Rahman, chairman of DU Marketing Department and co-founder of MWB, was also present, among others.

The findings show, among the domestic brands, Vision has been doing relatively well in electronics in the last few years.

Although the market share of Vision is between 2-3 percent, some experts predict that the brand will expand rapidly in the future due to its extensive network.

The study further revealed that the market for electronics products in Bangladesh has grown at an increasing rate over the past decade.

The market size was $143.14 billion in 2020. If this growth rate continues, the size of this cash market is likely to stand at $5.17 billion in 2025.

Rapid electrification in rural areas, rapid industrialisation and urbanisation, increase in per capita income and purchasing power and, above all, improvement in living standards have been the driving forces behind this growth. Also, like the overall electronics market, the television market is growing.

At present, the market size of television is 30.03 percent of the total electronics products sold in Bangladesh.

The market size of television was $636 million in 2020 which could increase to $940 million in 2025.

The study, however, identified the “grey-market” as a threat to the entire television industry.

The grey-market products consist of counterfeit (sticker-based) Chinese products and brands entering through unauthorised channels by false declaration.

Companies active in the television industry are very much uncomfortable and bit scared with grey-market TVs.

The study examined the level of consumer satisfaction-dissatisfaction among television users on a variety of topics.

It found that a minimum of 70, and a maximum of 81 percent of users reported no problems with the televisions.

However, users who already have televisions tend to buy high-end TVs.

Consumers with higher income are running after large-size smart LED TVs, they have a common preference to buy international brands.

However, over time, perception of a few customers has been moderately changed.

Some high-end customers started to believe that domestic products, especially Walton, are offering better quality LED televisions at relatively low prices.

The younger generation and upper class buyers think that domestic brands are suitable for middle class people.

Buyers also complained about the uncooperative behavior of some sales staff and limited technical knowledge in the showroom.

The researchers recommended that the domestic brand televisions need to be designed in a promotional way that touches on all those who play a role in purchasing televisions.

Although 70 percent of the respondents said that they did not find any problem in the domestic television, the problem of screen-picture-color, sound problem needs to be fixed.

Other recommendations include following the multi-branding approach to attract the attention of affluent buyers, adding the latest features, providing warranty customer service, online marketing, free installation and delivery and EMI facility.

They also include launching 24/7 call centres and using advanced technology like chatbot and investing more in research and development.

The researchers came up with some suggestions for the smooth growth of television industry in the country which include to stop import and sale of counterfeit TVs, ensure increased taxes and levies on foreign TVs to discourage grey market.

It also suggested reducing taxes on imports of TV making equipment and raw materials to encourage domestic industry, facilitating export process and providing financial incentives to exporters.