Electro Mart Group is one of the largest Business houses in Bangladesh, having been continuing its business as an Importer, Manufacturer and Marketer of a wide range of electronic home appliances like Air Conditioners, Refrigerators, Freezers, LED TVs, Washing Machines, Microwave Ovens, Rice Cookers, Pressure Cookers, Air Coolers etc. earning an envious altitude of dependability and reliability throughout the country. Electro Mart, a seller of low-cost imported television in the 1990s, has gone strength to strength and is now manufacturing various electronic products of global brands, including World No.1 KONKA and GREE brand, all with the “Made in Bangladesh” label.
In a recent interview with Bangladesh Brand Forum, Nurul Afsar, Deputy Managing Director of Electro Mart, shared the journey, progress, and future goals of Electro Mart.
BBF: Electro Mart has emerged from a retail business to a global brand manufacturer. Tell us about the journey and associated strategies.
Nurul Afsar: As you know, primarily, our operations were limited to importing and selling to retailers. Later we entered into the retail business. At one point, we expanded our operations in assembling electronics products. But the uprising potential demand for international branded consumer electronics & home appliances alongside convenient government policies inspired us to make a huge production of global brands like KONKA and GREE in Bangladesh. In parallel, we developed HAIKO brand electronics as our local brand by sharing Japanese technology and innovation. Consumers of electronic products always trust our brands for the service and interpretation brands. The strategies are simple. We ensure the best quality, after-sales services, and affordable prices. The combination of all these services led us to emerge from a retail business to manufacturing.
Electro Mart has been holding a constant and solid position in the industry. How does Electro Mart maintain its consistency over the years?
From starting to date, we have tried our best to provide quality products at an affordable price to Bangladesh’s electronics consumers. See, our consumer demography is highly concerned about quality and price. If these two factors are insured, a company should expect consistency in the market. Although it’s really difficult for a company to balance both quality and price according to consumer demand, we are blessed to have maintained the balance.
Again, consumer needs and demands frequently change with time and trends. We have always been concerned about the changes. The demand for international brand electronics has grown high in Bangladesh. Electro Mart, rather than importing, started assembling and manufacturing international brand electronics in this industry. Therefore, in 2015, we made plans to set up a manufacturing plant. As per planning, we started development and made an agreement with China for sharing technology. Now we manufacture World No.1 GREE and KONKA brand electronics and our own brand HAIKO labelling “Made in Bangladesh.”
In short, understanding market impulse and innovating with time has helped us maintain consistency.
What challenges does Electro Mart experience in manufacturing and decision-making?
Reply: Well, it’s true. We face several challenges in manufacturing electronics products. Let’s say, rapidly changing technology, short product life cycles, increasing competition, price pressure, access to raw materials, environmental regulations, changing consumer preferences, economic conditions, supply chain disruptions, and warranty & support are some biggest challenges. As a matter of fact, Nowadays, it is more challenging due to the worldwide economic turmoil situation, covid-19 effects and the Russia-Ukraine war.
Raw materials of most electronics items are fully import-dependent. As a result, the price of raw materials, freight, import duty & exchange rate of the dollar is regularly changing. Such situations impact our short and long-term decision-making. Even fixing the price gets difficult at times due to the instabilities. However, sticking to proper decision-making keeps your company on high roads. Many companies’ profit margins go down regularly due to challenging decision-making problems.
Again, you should know that the consumer electronics manufacturing industry is one of the most rapidly changing and competitive industries globally. So both stakes and gains are high here. Companies must constantly innovate and adapt to the ever-changing landscape to stay ahead of the competition.
How have the consumers’ demands and behavior changed or developed over time?
Reply: Consumers’ demand and behavior fluctuate all the time. Speaking of Bangladesh, the purchasing power of our consumers is increasing along with the progress of our economy. Additionally, the spread of information technology exposed wider electronic products to people of all socioeconomic backgrounds. Nowadays, people want a touch of modernity in their lives. Back then, electronic products were limited and consumed by only a fraction of the total population. But now, thanks to fast-paced economic growth, people’s increasing purchasing ability, and the availability of various electronic compliances, electronic products have become common among mass people. Some electronic products, which used to be luxurious items, once turned into necessary amenities for daily life.
Electro Mart Ltd. (EML) is set to invest Tk 5,000 crore and employ at least 30,000 people by 2030. How does the business house plan to execute the mega project?
Reply: Well, Electro Mart’s started its journey in the Bangladeshi electronics market in 1988. Back then, Bangladesh’s consumer electronics industry was fully reliant on imports. But the scenario has changed over time. And now, it is one of the fastest-growing industries. Having said that, being one of the influential companies in the sector, we are planning to invest Tk 5,000 crore and employ at least 30,000 people by 2030. It’s a mega project indeed. So, we are heading step-wise. Exporting electronic compliances is one such step that’s going to uplift the overall industry. However, initially, we are going to start exporting refrigerators and freezers within 2025. Following that, we will begin exporting other home appliances by 2030. So, we started joint production first with Konka and then with Gree in our Sonargoan factory. The investment and the manpower will play a vital role in executing the grand project. Since we have the capacity and prior examples of executing innovative and market-growing projects, we are strategically confident in ensuring a successful outcome.
Electro Mart is moving towards becoming a global export-based business house. How do you envision the future of Electro Mart and the overall local industry?
Reply: Honestly, the consumer electronics industry shows a brighter picture of the future. Few factors are essential here. First, Due to rising labour costs in China & European countries, more and more production is being outsourced to cheaper destinations. With its affordable wage structure of workers, growing expertise in the IT sector, and light engineering, Bangladesh can be a future hotspot for consumer electronics manufacturing. Second, With the number of nuclear families on the rise and other macro and micro economic factors changing for the better, it is a safe bet to say the industry will boom.
However, while the local companies have yet to catch up with the big international players, the day is not far when the locals will compete in the same demographic consumer market as the international players.
Speaking of Electro Mart, we produce international brands in collaboration. So our brand has worldwide demand. As we are going self-sufficient in this industry, we can easily promote our products to global customers. Due to our global manufacturing networks, we are well-positioned to meet today’s demands for consumer electronics. We additionally have overseas networks to increase supply, boost productivity, reduce costs, and meet the challenges posed by a rapidly changing landscape. On the other hand, we have huge opportunities to avail of our low-cost labour and government subsidy facilities. These influential factors lead us in moving as a global export-based business house.
How would you evaluate the current economic development scene of Bangladesh as a catalyst for the progress of the industry?
Reply: The per capita income of Bangladeshis has climbed to $2,824 at present. Additionally, the country is becoming more and more urbanized and industrialized. As a result, people’s purchasing habits and the way of spending their money have changed a lot. Well, another pivotal aspect remains the accessibility of electricity. While only 47% of people had access to electricity in 2009, all Bangladeshis are expected to have access to electricity in 2022, according to reports. Moreover, changing family structure, an increasing number of women in the workforce, rising middle-class families, change in urban & semi-urban living styles, competitive market and accessible financing opportunities, and the demand for electronics products are growing highly—these developments are the catalyst for the progress of the industry.
What role can innovation play in upgrading the overall industry?
Reply: Innovation & technological development will determine the future of the industry. In developing countries like us, innovation is growing faster, making space for a market full of new products with new features and different advantages. This ‘in-product innovation’ has the potential to give rise to new demands.
