Electronics sales go sluggish

Sales of electronic appliances could not meet expectations of the companies this Ramadan, one of the peak seasons. Leading brands have failed to achieve their sales targets due to a drop in people’s disposable incomes amid higher inflationary pressures.
The companies also blamed a sluggish stockmarket and a long Eid vacation for the poor sales.
Another reason behind the slow turnover was a huge tax gap between the local manufacturers and the importers.
The local makers get a huge tax benefit from the government and enjoy a competitive edge over the importers.
The average inflation rate rose to 10.62 percent in fiscal 2012, the highest in the last three years and a half, according to Bangladesh Bureau of Statistics.
However, point-to-point inflation came down to 8.03 percent in July from 8.56 percent in June with the old base year.
Sector people said many consumers spend much of their Eid budget on buying electronics such as television, refrigerator, camera and other appliances.
A portion of their spending also goes for buying rice cookers and microwave ovens that see increased sales during the month.
Sales of rice cookers and microwave ovens soar in the month as many Muslims prefer to use such devices to prepare their meals quickly and easily.
Ramadan is one of the peak seasons for selling home appliances such as television, home theater, audio system and camera, said KM Musaddeque Ullah, deputy manager (marketing) of Rangs Electronics Ltd.
Rangs Electronics had a target to sell around 3,500 pieces of LCD televisions and 1,000 pieces of home theater during Ramadan, he said.
“But, we did not get a good response compared to the previous Ramadan,” said Musaddeque.
Sluggish economic activities and a volatile stockmarket also caused a slump in sales, he added.
However, Rangs Electronics, which markets Sony branded products in Bangladesh, got a positive response in camera sales. It set a target to sell around 4,000 pieces of camera in Ramadan and succeeded to achieve much of their targets, said the official.
Transcom Electronics Ltd, a leading marketer of electronics, was not happy with their sales in the month.
“We could not log sales up to our expectations due to sluggish economic activities and a price hike of clothing and footwear items,” said Firoze Mohammad, marketing manager (E&A Business) of Transcom Digital.
Long Eid vacation is another reason behind the poor sales during Ramadan, he added.
“Customers usually buy electronics from major cities. They left Dhaka early due to the long vacation,” he said.
Sales of Singer branded appliances were also not satisfactory, said MD Raziur Rahman, marketing communication manager of Singer Bangladesh. “We have achieved a moderate sales target, but it is not up to our expectations,” said Rahman.
Eroding disposable incomes could be one of the reasons for the poor sales, he added.
Md Sanaullah Shahid, chairman of Electra International Ltd, said a higher duty gap between the local companies and the importers is one of the main reasons behind the sluggish sales.
The duty gap is 98 percent, which is creating an uneven competition, he said.
Electra had a target to sell around 4,000 pieces of refrigerators, but it failed to achieve the target, said Shahid.
He also criticised the government for giving an “undue favour” to a local refrigerator maker.
Amir Hossain Khan, chairman of Bangladesh Electronics Merchants’ Association, also said the higher duty gap impacts the sales of electronics.
Giving an example, he said an imported air conditioner, after paying all duties, is sold at Tk 43,000, whereas the local manufacturers, who do not need to pay any duty and VAT, sell the product of the same cooling capacity at Tk 46,000.
The local makers’ price should have been much lower, he added.
Moreover, the local refrigerator makers do not need to pay VAT for importing raw materials such as copper pipe, metal sheet and plastic for making refrigerators.
The market size of electronics (excluding mobile phones) is Tk 6,500 crore per year and has been growing at 10 percent on average for the last 10 years.

Courtesy of The Daily Star

Related News

Walton introduces hire purchase and family protection

Business Desk : dhakamirror.com Walton has launched a hire purchase and family protection policy along with a one-stop service solution. SM Mahbubul Alam, managing partner of Walton Plaza, inaugurated the ‘Hire Purchase and Family Protection Policy’, ‘One-stop Service Solution’ and ‘Hire Purchase and Family Protection Week’ at a programme held at Walton Corporate Office in ... Read more

ICAB, auditor general office to exchange knowledge

Business Desk : dhakamirror.com The Institute of Chartered Accountants of Bangladesh (ICAB) and the Office of the Comptroller and Auditor General (OCAG) of Bangladesh signed a memorandum of understanding (MoU) recently to sharing knowledge by jointly developing and introducing courses and programmes.  The two entities will also work towards developing customised training programmes and disseminating ... Read more

Shahjalal Islami Bank gets first place in 22nd ICAB National Award

Business Desk : dhakamirror.com Shahjalal Islami Bank has won first position for the best presented annual report-2021 at the 22nd ICAB National Award recently. Mohammed Younus, chairman of the bank, Mosleh Uddin Ahmed, managing director, and Md Jafar Sadeq, chief financial officer, received an award from Commerce Minister Tipu Munshi at Pan Pacific Sonargaon Dhaka, ... Read more

Islami Bank wins ICMAB Best Corporate Award 2021

Business Desk : dhakamirror.com Islami Bank Bangladesh Limited IBBL won the ICMAB Best Corporate Award 2021 for “Private Commercial Bank (Islamic Operation)”. Commerce Minister Tipu Munshi handed over the award to Muhammad Qaisar Ali, additional managing director of the bank Thursday (1 December) at a ceremony held at Hotel InterContinental Dhaka. JQM Habibullah, additional managing ... Read more

Brac Bank holds fire safety awareness sessions during Fire Service Week

Business Desk : dhakamirror.com To observe Fire Service Week, Brac Bank held a fire safety awareness event for its people in conjunction with the Fire Service and Civil Defence Department. The bank arranged a fire safety drill at its head office in Dhaka on 17 November, said a press release. The department observes Fire Service ... Read more

Premier Cement Mills PLC obtains ICMAB ‘Gold Award’ for cement manufacturing

Business Desk : dhakamirror.com Once again, Premier Cement Mills PLC has taken home the Gold in the Cement Manufacturing category at the ICMAB Best Corporate Award 2021. Mohammed Amirul Haque, managing director of Premier Cement Mills PLC, received the award from Commerce Minister Tipu Munshi at a city hotel on 1 December.  Among others Federation ... Read more

IPDC Finance took home “gold” for ICMAB Best Corporate Award 2021

Business Desk : dhakamirror.com IPDC Finance was honored with the Gold Award in the NBFI category at the ICMAB Best Corporate Award 2021. The awards event took place on Thursday, December 1 at the Intercontinental Dhaka, said a press release issued in this regard. Commerce Minister Tipu Munshi handed over the awards to the recipients as ... Read more

Agora, BD Recycle Technologies to work on solid-waste management 

Business Desk : dhakamirror.com Agora Limited has recently joined hands with BD Recycle Technologies Limited (BRTL) to work together with the goal of ensuring sustainable solid-waste management. A memorandum of understanding has been signed in this regard, where these two institutions will work towards environmental protection through modernisation of waste management, reads a press release. ... Read more

ICMAB Best Corporate Award goes to 65 firms

Business Desk : dhakamirror.com A total of 65 businesses were awarded the “Best Corporate Award 2021” by the Institute of Cost and Management Accountants of Bangladesh (ICMAB) for their efforts in establishing corporate governance. After examining each company’s annual report, the ICMAB presented them with honors Thursday night at a local hotel during its annual ... Read more

Meghna Bank to avail mobile financial solution platform

Business Desk : dhakamirror.com Meghna Bank recently signed a tripartite agreement with ModeFinServer Private and Genex Infosys at the bank’s head office in Gulshan, Dhaka to avail a mobile financial solution platform from the former and provide logistics and localisation support from the latter.  Sohail RK Hussain, managing director of Meghna Bank, Amarnath Chowdhury, managing ... Read more

Citibank NA appoints New Country Officer in Bangladesh

Business Desk : dhakamirror.com Citibank NA Bangladesh recently appointed a new country officer.  The appointee, Md Moinul Huq, joined Citibank NA in 2002 and previously worked for Al Baraka Bank and Dhaka Bank, said a press release. As country officer, Huq will lead the Citi franchise in Bangladesh and will be responsible for Citi’s business ... Read more

Shwapno establishes new outlet at Aftabnagar Siraj Convention Centre

Business Desk : dhakamirror.com A new outlet of the retail shop Shwapno was inaugurated at the Siraj Convention Centre in Aftabnagar, Dhaka. An event was held to mark the occasion on Tuesday noon, reads a press release issued in this regard. The programme was attended by landowner Md Siraj, Shwapno Head of Retail Administration Saiful ... Read more

Rezina Parveen becomes DMD of Agrani Bank

Business Desk : dhakamirror.com Rezina Parveen was recently appointed as the Deputy Managing Director of Agrani Bank Limited. She formerly held the position of General Manager at Janata Bank, where she gained both respect and success, before moving on to Agrani Bank. She served as acting CEO of Janata Capital and Investment Limited, which is ... Read more

Janata Bank assists Bangladesh Kabaddi Federation financially

Business Desk : dhakamirror.com Janata Bank Limited recently gave money to the Bangladesh Kabaddi Federation to help them set up an independent welfare fund to pay for injured players’ medical bills. A press release says that Abdus Salam Azad, MD and CEO of Janata Bank and Vice-President of Bangladesh Kabaddi Federation, gave the donation check ... Read more

Two-day ‘Bima Mela’ was organized at Barishal

Rupali Insurance demonstrated the most innovative customer service during the event. Business Desk : dhakamirror.com On the 24th and 25th of November, 81 property, casualty, and life insurance companies displayed their products during the two-day “Bima Mela 2022” in Barishal. Visitors were happy to take part in a variety of games and activities organized by ... Read more

MTB Foundation and Buet provide student scholarships

Business Desk : dhakamirror.com The Bangladesh University of Engineering and Technology (Buet) and the Mutual Trust Bank (MTB) Foundation recently held a “Saifuddin Ahmed Chowdhury Memorial Scholarship” program at the Buet academic council bhaban in Dhaka. The programme aims to provide funds on a monthly basis to 33 students of 12 departments, said a press ... Read more

Jamuna Bank Foundation holds free plastic surgery camp

Business Desk : dhakamirror.com A free plastic surgery camp for cleft lip, palate, and burn patients was held at Munshiganj General Hospital by Jamuna Bank Foundation. Specialized doctors from the Netherlands provided treatment during the camp, reads a press release. Local government Tazul Islam attended the camp as the chief guest. Chairman of Jamuna Bank ... Read more

Disney Star and Beximco Digital Distribution reach broadcast agreement in Bangladesh

Business Desk : dhakamirror.com Beximco Digital Distribution Limited (BDDL), a concern of Beximco Group has signed a deal with Disney Star to distribute eight of their popular entertainment television channels across Bangladesh via paid television service through cable, IPTV, and OTT. The collaboration will see BDDL distribute Disney Star’s channels in the original languages of ... Read more

6 Organizations and 5 Individuals get Best CSR Awards 2022

Business Desk : dhakamirror.com Six organizations and five individuals were recognized with “A Better Tomorrow CSR Awards 2022” for making positive contributions to society through various projects. The awards were presented by Planning Minister Abdul Mannan at a ceremony held at Le Meridian Dhaka in the capital, according to a press release. The Daily Star ... Read more

Nagad gets two MasterCard Excellence Awards 2022

Business Desk : dhakamirror.com The Postal Department’s Nagad mobile financial service won the “Mastercard Excellence Award 2022” for its digital innovation in Bangladesh’s financial industry. According to a press release, Nagad won its second online award for its outstanding merchant business contributions. Mastercard recently held the “Mastercard Excellence Award 2022” ceremony in Dhaka’s five-star hotel ... Read more