AC's classification as a luxury item needs to reconsidered
Local manufacturer Orion Home Appliances is making inroads into the local AC market. Md Abu Tariq Zia Chowdhury, their Chief Marketing Officer, in a recent interview with The Business Standard, spoke about their offerings, the rising demand for AC and making air conditioning affordable for everyone
Due to the ongoing heatwave, the demand for air conditioners (ACs) surged by around 10%, extending beyond urban areas to encompass rural areas as well.
In an interview with The Business Standard, Md Abu Tariq Zia Chowdhury, chief marketing officer of Orion Home Appliances, spoke about the demand for air conditioners.
Chowdhury said that although the price of ACs has increased compared to previous years, people are still visiting showrooms. When asked about the reason for the price increase, he explained that ACs are now considered essential due to excessive heat, but they are still treated as luxury products.
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Consequently, the duty on imports of ACs and their components is high. Additionally, the rising dollar and higher utility charges have increased production costs, leading to higher prices. Nevertheless, people continue to purchase ACs due to the unbearable heat.
Regarding Orion Home Appliances' ACs, Chowdhury stated that the company offers both inverter and non-inverter technology ACs in the market. Inverter-technology ACs cost more but are energy efficient. However, many people opt for non-inverter ACs due to their lower price.
Regarding demand, he noted that previously, orders primarily came from Dhaka, Chattogram, and other divisional cities. However, as the heat has intensified, orders are also originating from small towns. Surprisingly, orders are coming from villages where there was previously no demand whatsoever.
The chief marketing officer said, "Customers can purchase ACs from our showrooms by paying in instalments. We have partnered with several banks and non-bank financial institutions for this purpose. Customers can also opt for instalment plans through credit cards."
Additionally, he mentioned that their dealers also offer instalment facilities for ACs.
When asked about the benefits provided with the sale of Orion ACs, he mentioned that a maximum 10-year guarantee and a two-year service warranty are offered for both inverter and non-inverter compressors. Free service is provided for these two years, and for non-inverter compressors, it extends to five years.
He emphasised Orion's commitment to after-sales service by stating, "We prioritise after-sales service and have a dedicated team for this purpose. We have appointed technicians nationwide and also collaborate with third parties to ensure prompt service for our customers."
Responding to a question about preventing AC-related accidents, he highlighted the importance of avoiding overloading the AC and ensuring regular servicing.
He mentioned that they clearly outline servicing procedures in their AC brochure and provide guidance to customers regarding the frequency of servicing before purchasing an AC.
Addressing how the cost of ACs can be reduced, he expressed optimism about the future of ACs as an essential product. He emphasised the need to reconsider their classification as a luxury item.
He suggested that reducing the duty on AC imports and providing incentives for local manufacturing could help lower costs and benefit both consumers and local companies.
