Rural demand fuels Eid electronics sales
Photo: Anisur Rahman
Rural people have emerged as key consumers of home appliances ahead of this year's Eid festival, as surging remittance inflows and good prices for agricultural produce, particularly rice, have boosted their purchasing power, according to electronics manufacturers and sellers.
Besides, rural consumers have more disposable income as their cost of living is lower than that of urbanites.
"Overall, we achieved double-digit growth in electronics sales ahead of Eid, thanks to the strong performance of the agriculture sector, which directly impacted demand for home appliances," said Kamruzzaman Kamal, marketing director of Pran-RFL Group.
Vision Electronics, a concern of Pran-RFL Group, witnessed strong sales growth in rural areas ahead of Eid-ul-Fitr, driven by increased purchasing power in the agricultural sector, he added.
The company performed well in selling a variety of products, including refrigerators, with demand particularly strong in villages and small towns.
He explained that when agricultural production is good, farmers have more disposable income, which they use to purchase essential household items like refrigerators, fans, and televisions.
This year, higher crop yields due to favourable weather and stable market prices have allowed many rural consumers to invest in durable goods.
Additionally, Vision's competitive pricing compared to multinational brands played a key role in boosting sales.
"Our home appliances are more affordable, making them accessible to middle- and lower-income families, especially in rural areas," Kamal said.
As rural prosperity grows, so does demand for electronic goods, indicating a strong link between the agricultural economy and consumer electronics sales.
Ritesh Ranjan, head of business at Transcom Digital, said sales of electronic home appliances have increased only marginally as most people currently lack disposable income due to economic pressures.
According to him, sales of small electronic items grew by a maximum of 5 percent compared to last Eid. Consumers are prioritising essential spending, and even air conditioner sales have yet to gain momentum as the heatwave has not arrived.
However, Ranjan pointed out that sales of high-end televisions, particularly those over 43 inches, have increased by around 20 percent.
This trend indicates that ongoing inflation has not significantly impacted the higher middle-income and affluent segments, who continue to spend on premium electronic products.
He further explained that during Eid-ul-Fitr, people typically focus their expenditures on clothing, gifts, and festive essentials rather than large electronic purchases.
As a result, demand for home appliances remains subdued, except for essential items.
Salim Ullah Salim, director (marketing) at Jamuna Electronics, said sales of electronic appliances picked up in the final days before Eid, with small appliances performing better than larger ones.
"The peak sales period is not entirely over yet, but in the last three days, we have observed a steady rise in sales after Ramadan day 20," he said.
Among the best-selling products were blenders, juicers, rice cookers, and electric kettles, reflecting strong consumer demand for smaller appliances.
"Compared to last year, sales of these items have increased slightly, which is a direct impact of the higher inflow of remittances," Salim added.
Bangladesh received a record $2.94 billion in remittances in the first 26 days of March, driven by Eid-ul-Fitr.
He said sales were about 4-5 percent higher than last year, but it was not a major surge.
"Consumers were less inclined to purchase large appliances like televisions and washing machines, focusing more on essential kitchen electronics," he said.
Zoheb Ahmed, chief marketing officer of Walton Hi-Tech Industries PLC, said the refrigerator industry remains a key business indicator for the company.
"While our sales growth has been somewhat slow, there is still room for optimism. We are witnessing a resurgence in sales growth, which is a positive sign for us," he said.
Ahmed emphasised the significance of their market space, particularly in the large refrigerator segment.
"Demand for bigger refrigerators is high, and alongside regular-sized models, large refrigerators are also gaining traction in the market," he added.
Regarding seasonal sales trends, he noted that Ramadan and Eid-ul-Azha account for approximately 65 to 70 percent of total refrigerator sales, making these periods crucial for the business.
On the performance of small home appliances, Ahmed acknowledged that the company did not achieve the expected growth this year.
"We had anticipated a higher sales momentum, particularly for products like rice cookers and blenders, but actual sales did not align with our expectations," he explained.
Ahmed said the company is closely monitoring market trends and will provide further insights into small appliance sales soon.
Bangladesh Defense
