Local television manufacturers and assemblers, now focusing on research and development, have made inroads into the burgeoning domestic market.
They expected Bangladesh to grow to a billion-dollar market by 2025, and prepare their business plans accordingly for both home and overseas markets.
The home-grown electronics companies say they have attained abilities to have a foothold on the global television market with policy support from the government, tax exemption, and cash incentives on export.
Currently, 'Made in Bangladesh' televisions account for about 40 per cent of the local market while imported or assembled foreign brands hold over 60 per cent, according to a recent study by Marketing Watch Bangladesh (MWB).
Companies like Walton, Vision, Singer, MyOne, Minister, Jamuna, Marcel, and Rangs have been shaping the locally-made TV market while available foreign brands include Sony, Samsung, Panasonic, Toshiba, Phillips, LG, Sharp, Hisense, and Xiaomi.
In last five years, the TV market in the country has grown at a 10.33-per cent compound annual growth rate (CAGR) to become a US$ 636-million market in 2020 from $389 million in 2016.
Television now holds about 30.03 per cent of the $3.14 billion worth of market of consumer electronics in the country.
The MWB forecasts that the market size may reach nearly $687 million in 2021, and if the growth is sustained, it will touch $940 million or even a billion-dollar mark by 2025.
However, the grey market of television, which accounts for at least 20 per cent of total sales, has been headache for local manufacturers as these cloned and counterfeited devices, having foreign brand stickers, compete with local brands in terms of price, the MWB study observes.
Professor Mizanur Rahman, co-founder of the MWB, said: "Home-made products will be able to occupy 70 to 80 per cent of total market share in the near future if the grey market can be controlled."
To take proper action against the illegal market of television he suggests that rules and regulations should be formulated. Such policy support can effectively facilitate local manufacturers and assemblers.
Prof Rahman, also the chairman of Marketing Department at Dhaka University, recalls that Bangladesh was almost fully dependent on imported television to meet domestic demand just a decade ago. But, he says, now local manufacturers dominate over 40 per cent of the market.
The MWB study also noted that strong demand from district towns and rural settlements under improved electricity coverage mostly drove the growth of television sales in the past decade.
Besides, increased access to broadband internet across the country has created demand for reasonably priced smart televisions and it is where the local electronics manufacturers are envisioning market expansion.
Besides, the burgeoning middle-and higher-middle-class sections of society are purchasing high-end smart LED TVs with latest features taking advantage of EMI (Equated Monthly Instalment) facility offered by many companies.
Bangladesh Bank data show, as of September 2021, the number of credit cards reached about 1.81 million in the country while the number of debit cards stood at 24.23 million.
Currently, local electronics giant Walton holds about 25 to 27 per cent of total TV-market share in the country followed by Samsung12.5 per cent, Singer 9.0 per cent, Sony 6.0 per cent, LG 5.0 per cent, Minister 4.0 per cent, Vision 3.0 per cent, Jamuna 2.0 per cent.
Mostafa Nahid Hossain, Chief Business Officer (Television) of Walton, says: "We have been doing quite well in the local market for last couple of years, which gave us the confidence to go for international market."
Referring to export of Walton-brand TVs to at least a dozen European countries like Germany, Greece, Ireland, Poland, Romania, and Spain, he said even during the corona pandemic, Walton had seen phenomenal growth in television export to Europe.
Foreign buyers have been showing interest in Bangladesh, diverting from China, due to competitive price and quality, he said, adding that the electronics can be a great sector to diversify export basket reducing sole dependence on RMG.
"A 20-per cent cash incentive on television export can give impetus to local manufacturers to prepare for global market, which ultimately will help stabilise the local market with quality products," he said.
According to the Grand View Research, a market research and consulting company, the global smart TV market reached a value of about $202.1 billion in 2020 by selling over 268.9 million units, and the market is expected to expand at a CAGR of 20.8 per cent in-between 2021 and 2028.
Meanwhile, Kamal Kamruzzaman, Director at PRAN-RFL Group that manufactures Vision and Vigo brands of television, said the demand for smart LED TVs has been increasing fast in the country.
The country's electronics companies have been manufacturing quality products at competing prices which reduced Bangladesh's dependency on television imports.
He estimated that over half of the country's television market is now dominated by local companies and assemblers of foreign brands.
"We have production capacity of 100,000 units per year, which can be increased in line with future demands in a short time as basic infrastructure exists at the current manufacturing plant," he said.
Besides, companies like Rangs, Samsung, Singer, LG, Transtec etc have also been assembling different models of smart LED televisions in the country apart from importing models with high-end features.
Televisions of different brands, sizes, and quality can be purchased at prices from Tk 12,000 to Tk 500,000 at electronics shops across the country.
Meanwhile, sales of different accessories of smart TVs, such as keyboards, mouse, internet routers, and wall-hanging tools, are also on the increase in line with television sales.
The MWB study made some suggestions for local companies to increase sales. The dos include initiating multi-branding of products, better after-sales service, free installation and delivery, 24/7 customer care and chatbot service, more investment in research and development.
ahb_mcj2009@yahoo.com