Twenty years ago, refrigerators were only bought by wealthy families. They were expensive, imported from abroad, caused high electricity bills, dependent on load shedding, and this made the use of refrigerators limited.
Now fridges can be found in almost every corner of the country, in cities and villages.
Domestic electronics companies have played a major role in this change.
Talking to entrepreneurs, it was learned that no government office has accurate statistics on the demand for refrigerators in the country every year.
However, a study by Marketing Watch Bangladesh (MWB) in 2021 said that until 2010, the country's refrigerator market was controlled by foreign brands. Refrigerators were an import-dependent product.
That has now changed as domestic companies produce them.
The use of refrigerators has increased even in remote areas of the country.
Currently, 80% of the refrigerators sold are domestic refrigerators.
The market for these electronic products is growing at an average rate of 15% per year.
Seeing the success of domestic companies, most foreign companies have also started adding or manufacturing their refrigerators in Bangladesh.
The companies said that people's incomes in the country are increasing; their standard of living is also constantly improving.
This has also affected the refrigerator business, as 2.5-3 million units of refrigerators are sold within the country every year.
This market is usually growing at a rate of 5% to 10% per year. And now, after meeting local demand, refrigerators are being exported abroad.
Traders say that the refrigerator business has been going through some ups and downs since the Covid-19 pandemic.
Sometimes the business is growing; sometimes the growth is slow. They say that there is a potential for a large market for refrigerators in the country.
However, since the Russia-Ukraine war, the dollar crisis, the appreciation of the dollar, inflation, and interest rate hikes the growth has been hampered.
Domestic company dominance
The first domestic company to produce refrigerators in the country was Walton.
Then, one by one, Jamuna, Minister, Pran-RFL Group, Transcom, and Orion set up factories.
Currently, there are more than 13 domestic brands in the refrigerator market.
Among them, the top brands are Walton, Marcel, Minister, My One, Jamuna, Transtech, Vision, Electra, Rangs, Orion, Haico, Smart, Eco Plus, etc.
On the other hand, foreign refrigerator brands manufacturing and assembling in Bangladesh include Singer, Samsung, Konka, LG, Whirlpool, Haier, Hitachi, Hisense, etc.
Foreign refrigerator brands such as Sharp, Panasonic, Siemens, etc. are also sold in the domestic market. The companies that are assembling now are also planning to produce parts in the future.
It has been learned from talking to refrigerator manufacturing and marketing companies that the share of domestic companies in the amount of refrigerators sold annually is currently close to 80%-90%.
That means that a large part of the domestic demand is being met with refrigerators produced by domestic companies.
Villages are a big market
Due to affordable price, quality, stylish design, suitability to the needs of the people of the country and the weather, customers are showing more interest in buying refrigerators from domestic brands.
In line with the cities, domestic companies have set up showrooms in the sub-districts and villages under their own distribution channels. Due to this, the use of refrigerators is constantly increasing. To capture this huge market, many foreign brands are now showing interest in jointly producing refrigerators with Bangladeshi entrepreneurs.
There is no specific research or statistics on the country's refrigerator market.
However, according to the German-based market research company Statista.com, the refrigerator market in Bangladesh was worth $1.53 billion or about Tk1,866,500 crore in 2018.
Currently, that market has increased to $2.43 billion.
Statista says that by 2029, the domestic refrigerator market could reach $2.96 billion (about Tk3,600,000 crore at current prices).
According to Statista, refrigerators and cooler-like devices used in various industries and commercial sectors, in addition to households, have also been included.
The latest Sample Vital Statistics Report (2023) of the Bangladesh Bureau of Statistics (BBS) says that the total number of families or households in the country is 41 million.
Of these, 53.40% have at least one refrigerator; That is, more than half of the households are using refrigerators. In 2021, this rate was a little over 45%.
Sellers said that a large part of the refrigerators or freezers sold in the country annually are in villages.
Due to local demand, electronics stores have been established at the upazila and large union levels.
Another reason for the increase in refrigerator sales in villages is affordable prices.
Refrigerators are usually available at prices ranging from Tk15,000 to Tk2 lakh.
However, most refrigerators are sold in the rural areas at prices around Tk30,000 to Tk50,000.
Electro Mart sells Konka brand refrigerators. A distributor of Konka refrigerators in Munshiganj said that electricity has now reached every house in the villages. Roads and infrastructure have been improved.
On the other hand, the financial capacity of the villagers to buy refrigerators has been created. Income and employment from agriculture have increased compared to before; many families receive income from expatriates.
As a result, this has had a positive impact on refrigerator sales.
High sales during two Eids
Keeping in mind the needs of consumers, companies are currently bringing refrigerators of different sizes, technologies, and exotic designs to the market.
For example, modern refrigerators are given importance for fast cooling, tempered glass, energy-saving, environment-friendly, good compressor, etc.
Companies are producing refrigerators of various sizes suitable for small families, single people, pharmacies, hospitals, hotels-restaurants and shops.
Top executives of several refrigerator manufacturing companies in the country said that there is a demand for refrigerators all year round.
However, the highest sales are during the two Eids, which account for 60-70% of the total sales.
This is because the demand for refrigerators increases at the general consumer level during this time.
Especially during Eid-ul-Azha, the demand for freezers (deep freezers) is highest.
Sellers said that refrigerator sales had increased even during the Eid of Ramadan.
An official of Walton's sales center in the capital's Shewrapara area said that refrigerator sales have increased by more than 40% compared to normal times.
