Geyser sales surge as consumers look to beat winter blues

The devices were only thought to be used by higher-income groups in Bangladesh, but as people's disposable income rises, lifestyle changes and the power supply improves consumers from the middle-income groups are turning to geysers to use warm water for a comfortable bath.

And a decade ago, local entrepreneurs correctly projected that the market of geysers will expand in Bangladesh if the devices are produced domestically since it would allow them to bring down prices. So, they ventured out to manufacture them.

Accordingly, the market size of geysers has shot to around Tk 60 crore, according to market insiders.

Sales surged to 120,000 units this season as cold weather is sweeping across the country. It was 80,000 units in 2021.

Investment in the segment will not be more than Tk 20 crore as the technology is simple and the price is far lower.

Pran-RFL Group, Walton, Tropica, Gazi, Shameem, and Ariston are among the local producers, with RFL being the market leader thanks to a 35 per cent share followed by Tropica, which controls 15 per cent of the market.

"In the past, people used to think that a geyser is a luxurious item. So, the middle-income groups did not want to use it," said Kamruzzaman Kamal, director for marketing of Pran-RFL Group.

"But the perception has changed and ordinary customers now understand the utility of the products."

Per capita income rose from $776 in 2010 to $2,824 in the last fiscal year, data from the World Bank and the government showed.

The massive improvement in the electricity situation has driven up the consumption of geysers in the last one decade.

More than a decade ago, the power supply was not reliable. But electricity generation has quadrupled in the past 12 years, with the government bringing all households under the electricity network.  

"Now geysers are becoming popular among the rural people as well, as it gives them comfort and protects them from seasonal illnesses caused by cold in the winter season," said Kamal.

Over a dozen of companies manufacture brand and non-brand geysers and 90 per cent of the market is dominated by local firms thanks to competitive prices and quality services.

Locally made geysers can be bought at Tk 3,500 to Tk 6,500 while the imported ones are costing Tk 7,000 to Tk 16,000. Around 13 types of geysers are available, with the capacity ranging from 20 litres to 90 litres.

The peak season runs from November to February and the annual sales growth rate has been 40 to 45 per cent in the past eight to 10 years, market insiders say.

A local distributor of a global company that has a vast nationwide network sells 100 geysers every day in the Dhaka city and about 250 across the country.

"The sales are very good," said a senior executive of the company. The geysers are all imported from China. 

Asit Kumar Singh, a technician in the capital's Uttara area, says he has installed 30 to 40 geysers a month this winter.

Faisal Mahmud, another technician, says he installs geysers at least five times a week in various parts of Uttara.

Augustin Gomes, product manager for home appliances at Walton, says the company has sold at least 22,000 units of geysers this winter.

"The demand for our products has gone up by around 80 per cent compared to last season."

He said the sales have increased as awareness about the usefulness of the device has grown among the people.

"Local companies are now providing quality products at competitive prices. People's lifestyle is changing and their affordability has gone up. The availability of electricity has increased."

However, the market of 120,000 units is still small compared to the size of the overall market of home appliance, he added.