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AC sales up amid rising mercury

Jac,aran Chakma
Sales of air-conditioners are growing steadily in Bangladesh riding on the demand from the expanding middle class and modern offices and factories as consumers are seeking to escape hotter summers, market players said.
Data from the International Energy Agency, an inter-governmental organisation based in Paris, showed sales of airconditioners rose about 50 percent in Bangladesh during 2014-2016.
Six lakh units of ACs were sold in 2017, way higher than half a lakh pieces retailed a decade ago. The market size stood at Tk 3,500 crore last year, according to market players.
"AC is gradually becoming a mass product thanks to the rising purchasing capacity of people,” said Nahid Hassan, marketing
manager ofTranscom Digital.
He said the people who were accustomed to using ACs at their workplaces alone in the past are now installing them at homes. So, the demand is growing, he said.
Uday Hakim, operative director of Walton, a local manufacturer, said the annual demand for ACs rose 20 percent to 25 percent each year in the last five years.
Kamruzzaman Kamal, director for marketing at Pran-RFL, a local group of companies, said the market is expanding as local manufacturers are offering ACs at the prices the middle class can afford.
Consumers now can buy ACs with capacity from 1.5-ton to 2-ton at Tk 42,000 to Tk 70,000 and the quality is almost like that of the renowned brands, he said.
Pran-RFL made foray into the electronic market under ■Vision' brand only three years ago and hopes to bag a significant share of the growing AC market.
Zulfikar Ali, business in-charge for home appliances at Samsung, said the company recorded 200 percent growth this year.
Its target group is the upper- and higher- middle classes who prefer premium products, he said.
To cash in on the growing demand, local companies such as Walton, Transcom Digital, Rangs, Pran-RFL, and Singer Bangladesh have set up factories to assemble ACs and other home appliances.
Of them, Samsung has set up two factories to assemble its products. General and LG also assemble ACs in partnership with local firms. Local companies own about 40 percent market share in the AC market while the rest is controlled by foreign companies.
Global brands such as Samsung, Toshiba, General, Sharp, Whirlpool and LG control significant market share. Chinese brands such as Gree, TCL and Toshin have also captured substantial stake.
April and May are the peak season for outlets retailing ACs as temperature hits 33 degree Celsius to 36 degree Celsius, according to Hassan ofTranscom Digital.
He said most manufacturers in Bangladesh and global brands import compressor and major parts of AC and assemble the product in the country in order to cut production cost.
Hassan said the adoption of energy-efficient inverter AC has increased in the last couple of years as consumers are becoming conscious.
Most manufacturers offer 10 years warranty for compressor of AC, said Rashedul Islam, head of marketing at Rangs Industries Ltd.
Hakim of Walton said the local company manufactures air-conditioners using power-efficient inverters, Internet of Things and smart technologies.
"Walton is experiencing 30 percent to 40 percent growth every year, "he said.