We want to be number one

In 1998 when Electro Mart Ltd launched its Chinese-manufactured Konka colour television at almost half the prices of international brands, it took many by surprise.

The craze about the television brand continued in the subsequent years as the company offered an unprecedented 5-year warranty to the picture tube and ultra-low prices, bringing the electronics item within the reach of the people who wish to purchase one.

"In the late 1990s, most people in Bangladesh could not dare to dream to buy a television set, let alone a colour TV. We were able to offer them TVs at a really affordable price," said Md Nurul Afser, deputy managing director of Electro Mart, in an interview with The Daily Star recently.

The Fifa Football World Cup in 2000 brought another opportunity for Electro Mart.

"Many people had to buy our television standing in queue. People loved our brand," said Afser.

Beginning its journey in the mid-1970s, Electro Mart was initially engaged in the trading business. After the government offered tax benefits to encourage the establishment of manufacturing facilities, it signed up for producing home appliances such as refrigerators, washing machines, microwave ovens and air conditioners.

Nurul Afser

It set up, under its sister concern Trade International Industries Ltd, a manufacturing facility in Sonargaon of Narayanganj. It started to make refrigerators in 2018 and later added other products, including ACs.

"We offered quality ACs at prices that were 30 per cent to 40 per cent lower than the market rates," said Afser.

The firm has so far invested more than Tk 800 crore to develop its manufacturing capacity, creating employment opportunities for nearly 4,000 people directly.

Electro Mart is now focused mainly on ACs and refrigerators as the demand for the appliances is expanding owing to rising income, electricity coverage and urbanisation.

"The appliances that we make here have better quality as we have designed our products based on the weather and the taste and preference of local consumers. We are now making products of global standard," said Afser.

The plant also produces outer cabinets and liners of refrigerators and uses locally-made cables, paints and packaging materials.

Since the beginning of local manufacturing of refrigerators, Electro Mart has been able to expand its footprint and market share. Afser, also the deputy managing director of Trade International Industries, claims the market share of his company in the segment to be 20-25 per cent.

The company uses the majority of its refrigerator-manufacturing capacity, which stands at around 400,000 units annually.

Electro Mart's refrigerators use various devices such as active carbon and humidity control to prevent the spread of smell from one food to another food and ensure the freshness of vegetables.

"Not all refrigerators of other brands have these devices. But we have these devices in all our models. So, our refrigerators keep vegetables fresh. This is our strength," said Afser.

Electro Mart sells ACs from Gree, a popular brand known worldwide for its quality.

"We sell ACs at much lower prices although our products offer the same quality and features."

Electro Mart offers a 1.5-tonne AC at around Tk 67,000, whereas the price of an imported brand in the same capacity is around Tk 120,000.

A one-tonne Gree AC is being retailed at around Tk 50,000.

"Our Gree AC has been named as a superbrand in the air condition category in Bangladesh," Afser said, adding that Gree is the market leader in the AC segment.

"We are getting a very good response because of the quality of our products and our services. We do not compromise on quality. At the same time, we offer products at affordable prices."

Afser thinks there is a lot of opportunity to grow in the AC market in Bangladesh. The market grew 15 per cent in 2022.

Around 550,000 units of ACs are sold in the country every year, and Electro Mart can produce 300,000 units of ACs annually.

"It is no longer a luxury product. It is a necessary product. And it has become affordable because of the cut in prices thanks to the tax benefit offered by the government."

The market for ACs is expected to grow by up to 25 per cent this year as extended heat waves have fuelled demand.

"We expect the growth to continue in the next five to seven years as the standard of living is improving," said Afser.

In order to attract customers for its ACs, the company offers a 10-year warranty.

"Our freezes and ACs are energy-efficient and save electricity," he said, adding that the company ensures quality after-sale services.

The low prices of products mean a lower profit margin for Electro Mart, but Afser is not unhappy with the lower margin.

"We will continue to offer better products at affordable prices. We are investing continuously and are looking for ways to increase the use of locally available raw materials."

"Going forward, our target is to become the number one retailer in the electronics and home appliance segments. We also plan to export our products to neighbouring countries."