Local firms dominate electrical accessories, lighting market: Survey
The electrical accessories and lighting product market in Bangladesh is dominated by local companies, a countrywide survey conducted by Marketing Watch Bangladesh (MWB), a Dhaka University-based market research organisation, has found.
The findings of the research were unveiled on Saturday at a press briefing held in the conference room of Dhaka University’s Marketing Department.
The research team consisted of Prof Md Mizanur Rahman, former chairman of the Marketing Department and co-founder of MWB, and Prof Md Nazmul Hossain.
The research project included switches, sockets, holders, multi-plugs, circuit breakers, meters, LED lux, LED tubes, LED panels, bracket LEDs, GLS, energy-efficient bulbs, and emergency lighting options.
The research indicates that Super Star Group holds the top market position among local companies for both types of products.
In the market for electrical accessories, Super Star has a 29 per cent share, Walton and Click each have 17 per cent, Energypac holds 9 per cent, and Osaka, Blink, MEP, and Luxury each occupy 3 per cent of the market.
In terms of market share for branded lighting products, Super Star holds 25.59 per cent, Click 13 per cent, Walton 12 per cent, Transtec 10 per cent, Energypac 8 per cent, and Philips 7 per cent.
"Currently, over 5,00,000 people, including 1,50,000 retailers and 2,500 small entrepreneurs, are involved in the electrical accessories industry. Interestingly, the market share of local companies producing electrical accessories is gradually increasing and has reached around 50 per cent,” the report said.
“The estimated market size of electrical accessories (such as switches, sockets, holders, plugs, etc.) and lighting products (such as LED bulbs, tubes, emergency lights, GLS bulbs, etc.) is approximately Tk 6,000 ± 500 crores, with an annual average growth rate of 11.5 ± 2 per cent," the report added.
The research also aimed to explore the current market size, structure, and growth potential, major brands and their market share, consumer choices and preferences, industry challenges and provide recommendations for policymakers.
The research highlighted several challenges the industry currently faces, including the dominance of the grey market, uneven competition, lack of brand awareness among consumers, supply chain and quality control issues, policy and regulatory landscape, and undue dominance of retailers and electricians.
Professors Mizanur Rahman and Nazmul Hossain urged the government to address these challenges by consulting with local producers, middlemen, and experts.
They emphasized that promptly resolving these issues will benefit local producers, boost overall industry growth, and improve the country's economy.
The research employed both qualitative and quantitative methods. Data were collected through a nationwide survey conducted from September to November 2023.
Predominantly, primary data (survey data) were utilised, though some secondary data were also incorporated.