Local brands grab market with 94% share in accessories, 89% in lights

Local brands now dominate the country's electrical market, supplying 94% of accessories and 89.1% of lighting products, according to a new study by Marketing Watch Bangladesh (MWB), a Dhaka University-based research organisation.

The market size for electrical accessories and lighting products is Tk6,000 crore, with an annual growth rate of 11.5%, said the study unveiled yesterday.

Electrical accessories (switches, sockets, holders, plugs) account for Tk3,300 crore, while lighting products (LEDs, tubes, emergency lights, GLS bulbs) make up Tk 2,700 crore, it said. 

A decade ago, the market size was around Tk2,200 crore, but it has tripled due to the growth of local brands and increased electrification.

Top local players in both segments include Super Star, Walton, Click, and Energypac. International companies like Philips hold only a small share of the market, the study found.

Professor Md Nazmul Hossain, co-founder of MWB, told The Business Standard that before the rise of Bangladeshi brands, most electrical accessories were from the grey market or imported. 

"Over the past decade, the share of local brands has grown. Now, 53% of the electrical accessories and lighting market is now branded, while 47% remains non-branded," he added. 

He said data for the study was collected from September to November 2023, involving 2,016 end-users, 103 retailers, 99 electricians, and 5 industry experts across eight divisions of the country.

Md Tofael Ahmed, chief operating officer of Super Star Group, told TBS that their company's yearly growth is 15-20%. "The market share reported in the study is actually lower than our real market share. Super Star covers more than 50% of the retail market." 

Jakibur Rahman Sejan, brand manager of Walton, told TBS that once the entire market was dominated by grey products. "In recent years, local companies started producing these products, and now people trust local brands. Walton's market share in electrical accessories is around 16%-18%."

Mizanur Rahman, another co-founder of MWB, said that as the growth rate of local companies is significantly higher, in the coming days, these companies will further expand their dominance in the market.

He further said the progress of this industry over the past 25 years has been primarily driven by extensive electrification, consistent GDP growth, increasing income, rapid urbanisation, rural development, and concerted efforts by the government. 

The study also identified major problems with electrical accessories. It found around 23% electrical problems derive from loose connections and 20% from short circuits, followed by expired products, overheating, old designs, switch plate burn and break. 

The research organisation also said the challenges for the industry are dominance of the grey market, uneven competition, lack of brand awareness, supply chain and quality control, policy and regulatory landscape and undue dominance of retailers and electricians in the industry.

Currently, over 5,00,000 people, including 1,50,000 retailers and 2,500 small business owners, are involved in the electrical industry, according to the study.