Publish : 26 Nov 2021, 03:44 PMUpdate : 26 Nov 2021, 03:44 PM
The discussion of Bangladesh’s potential in assembling and manufacturing electronic products within the country keeps coming up in development seminars and conferences. The evidence that it’s not just a distant possibility but an achievable reality appeared in a recent study which found that locally-manufactured products are dominating the country's television market, holding a whopping 52% of its total market share.
This is immensely encouraging in a world monopolized by multinational tech giants. For perspective, just a decade ago Bangladesh was almost fully dependent on imported television to meet its demand. With over half of the market share taken by locally-manufactured products, Bangladesh can be well on its way to grab even a larger portion of the segment, the current size of which has been estimated to be $636 million.
However, while local products may be able to acquire an incredible 70-80% of the total market share very soon, there remain significant obstacles, in particular the grey market -- currently taking up an estimated 20% of the market share by importing counterfeit Chinese products through unauthorized channels.
This is a significant obstacle for the local industry and the authorities must force out the falsely documented -- and therefore illegal -- products occupying the country’s market. Local brands currently have an edge over foreign products as they can set prices competitively, resulting in increasing numbers of consumers choosing them. But this preference can be potentially swayed with future economic growth when a higher portion of the public will be able to afford the highest quality products, and will not necessarily choose the cheaper option.
Thus, while the growth of the domestic electronics market is to be encouraged, a simultaneous effort to push the local brands to keep up with international competitors in terms of quality must also exist. To that end, the right policy support is imperative to continue the inspiring growth of locally-made products and industries.
ED: Domestic industries must be nurtured
The discussion of Bangladesh’s potential in assembling and manufacturing electronic products within the country keeps coming up in development seminars and conferences. The evidence that it’s not just a distant possibility but an achievable reality appeared in a recent study which found that locally-manufactured products are dominating the country's television market, holding a whopping 52% of its total market share.
This is immensely encouraging in a world monopolized by multinational tech giants. For perspective, just a decade ago Bangladesh was almost fully dependent on imported television to meet its demand. With over half of the market share taken by locally-manufactured products, Bangladesh can be well on its way to grab even a larger portion of the segment, the current size of which has been estimated to be $636 million.
However, while local products may be able to acquire an incredible 70-80% of the total market share very soon, there remain significant obstacles, in particular the grey market -- currently taking up an estimated 20% of the market share by importing counterfeit Chinese products through unauthorized channels.
This is a significant obstacle for the local industry and the authorities must force out the falsely documented -- and therefore illegal -- products occupying the country’s market. Local brands currently have an edge over foreign products as they can set prices competitively, resulting in increasing numbers of consumers choosing them. But this preference can be potentially swayed with future economic growth when a higher portion of the public will be able to afford the highest quality products, and will not necessarily choose the cheaper option.
Thus, while the growth of the domestic electronics market is to be encouraged, a simultaneous effort to push the local brands to keep up with international competitors in terms of quality must also exist. To that end, the right policy support is imperative to continue the inspiring growth of locally-made products and industries.